AI infrastructure buildout drives PCB/CCL into a high-growth cycle, with Sytech as the top pick

Overview

This report focuses on the boost from AI infrastructure buildout to the PCB and CCL industry chain and initiates coverage on WUS, Delton, and Shengyi Technology (Sytech). The report argues that PCB is a critical carrier for AI chips and high-speed data transmission, and demand from AI servers, switches, and optical modules will drive simultaneous expansion in both the market size and value per product of PCB/CCL.

Core views

The key views are: first, AI infrastructure investment is a structural growth driver for the PCB/CCL industry, with global PCB TAM expected to deliver about 15% CAGR in 2025-2030E; second, AI PCB/CCL is growing faster, expected to rise from about US$7bn/US$3bn in 2025 to US$75bn/US$39bn by 2030E, respectively; third, material upgrades from M8 to M9/10, more high-layer-count and high-density designs, and penetration of processes such as mSAP will bring significant ASP uplift; fourth, Mainland China's mature and integrated PCB ecosystem still has advantages in efficiency, cost, and reliability; fifth, WUS, Delton, and Sytech are respectively well positioned in high-speed switch PCB, CPU PCB, and AI CCL, with Sytech as the top pick.

Analysis framework

The report uses a combination of top-down TAM estimation and bottom-up supply chain breakdown: it first estimates the global PCB, server PCB, AI PCB, and AI CCL market sizes, then breaks down supply chain participants by AI servers, switches, optical modules, and major AI platform products, and combines DCF, PE, and PEG to cross-check valuations for the covered companies.

Methodology notes

• Market sizingTAM forecast

  Forecast the total addressable market through end demand, server PCB share, AI-related PCB/CCL demand, and product upgrade paths.

  The report expects global PCB TAM to rise from US$85bn in 2025 to US$173bn by 2030E, with AI PCB/CCL reaching US$75bn/US$39bn, respectively.

• Valuation methodsDCF with PE and PEG cross-check

  Use DCF as the primary target price methodology, with PE and PEG used to test valuation reasonableness.

  WUS and Delton use 9.8% WACC and 6.5% terminal growth, while Sytech uses 7% terminal growth; target prices imply 2026E PE of about 41x/45x/41x/44x and 2026E PEG of about 0.6-0.9x.

• Supply chain analysisAI PCB/CCL supply chain breakdown

  Map the positioning of PCB/CCL suppliers by major AI server and switch products.

  By breaking down the supply chains of current and future products from major AI vendors, the report assesses the impact of product ramp-up and share changes on each PCB/CCL company.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• WUS (002463 CH)

  Beneficiary in high-end high-speed switch PCB

  Strengths

  It holds a leading position in high-layer-count and high-speed switch PCB, with high profit exposure to AI servers/switches and a relatively healthy competitive landscape.

  Weaknesses

  Valuation has already been re-rated alongside share price gains over the past two years, so subsequent AI-related revenue and profit growth still needs to be delivered.

  Comparison

  Compared with other PCB suppliers, WUS is more focused on the high-speed switch PCB segment.

  Risks

  AI server or switch demand falls short of expectations, market share declines, or material and process upgrades progress more slowly than expected.

• Delton (001389 CH/1989 HK)

  Beneficiary in server CPU PCB and potentially AI server/switch PCB

  Strengths

  It is positioned in the server CPU supply chain, benefits from a CPU demand recovery driven by agentic AI, and is expected to enter the AI server/switch market.

  Weaknesses

  Penetration into AI servers/switches still needs validation, and there are execution requirements in ramping profitability at overseas plants.

  Comparison

  Compared with WUS, Delton has greater exposure to CPU PCB and recovery in server CPU demand.

  Risks

  CPU demand recovery is weaker than expected, AI PCB penetration progresses slowly, or profitability ramp-up at overseas capacity is not smooth.

• Shengyi Technology (Sytech, 600183 CH)

  Beneficiary in high-end AI CCL; the report's top pick

  Strengths

  As a high-end CCL manufacturer in China, it has scarcity value and high technological barriers; breakthroughs in high-end AI CCL could drive share and revenue growth, while industry price increases support ASP and near-term earnings.

  Weaknesses

  Volume ramp-up in high-end AI CCL depends on customer qualification, technology iteration, and market share gains.

  Comparison

  Compared with WUS and Delton, Sytech is more directly exposed to high-end material upgrades and the CCL price upcycle.

  Risks

  Breakthroughs in high-end CCL are slower than expected, price increases prove unsustainable, or competition intensifies or customer share fluctuates.

Key data

• Global PCB TAM2025E US$85bn, 2030E US$173bn, 2025-2030E CAGR about 15%Source: Prismark and Jefferies estimates.
• AI PCB TAM2025E about US$7bn, 2030E about US$75bn, 2025-2030E CAGR about 60%Includes NVIDIA, Non-NVIDIA, Switch, Transceiver, and Others.
• AI CCL TAM2025E about US$3bn, 2030E about US$39bn, 2025-2030E CAGR about 70%Driven by AI servers and high-speed interconnect material upgrades.
• Global server PCB marketExpected to reach about US$90bn by 2030EDriven by growth in AI PCB/CCL.
• Mainland China PCB production shareAbout 58% in 2025, expected to remain above 50%Despite capacity expansion in Southeast Asia, Mainland China has the advantage of a mature ecosystem in production efficiency, cost, and reliability.
• Value uplift per GPUFrom NVIDIA GB200/300 to VR300, PCB/CCL value per GPU is expected to increase by 3-4x/4-5xMainly driven by material upgrades and more complex designs.
• Net profit growth of covered companies2026E-2028E net profit CAGR for WUS/Delton/Sytech is 43%/54%/48%Jefferies forecasts are mostly above market consensus.
• Target price upsideWUS/Delton-A/Delton-H/Sytech at 33%/27%/26%/37%, respectivelyAll are initiated with BUY ratings.

Impact & implications

If AI infrastructure capex continues to expand, the investment thesis for the PCB/CCL supply chain will shift from traditional cyclical demand to structural growth driven by high-performance computing and high-speed interconnects. Suppliers' competitive focus will shift from ordinary capacity to high-end materials, layer count, line width/spacing, mSAP, high-speed low-loss performance, and major customer qualification capability. Companies with advanced processes, stable delivery, and AI server/switch customer resources are more likely to achieve simultaneous re-rating in revenue, profit, and valuation.

Risks

• AI infrastructure capex is below expectations, leading to slower PCB/CCL demand related to AI servers, switches, and optical modules.
• Penetration of upgrades from M8 to M9/10 materials, mSAP, or higher-layer-count designs is slower than expected.
• Changes in major customers' product cadence, share allocation, or supply chain qualification affect revenue for related manufacturers.
• Capacity expansion in Southeast Asia, overseas plant ramp-up, or production efficiency falls short of expectations.
• Intensifying industry competition or pricing pressure offsets ASP uplift.
• Valuation re-rating has already reflected growth expectations in advance; if earnings delivery is slower than expected, the share price may come under pressure.

What to watch

• Global AI capex and the volume ramp-up pace of server/switch products from major AI platforms.
• Changes in PCB/CCL value per unit for NVIDIA GB200/300, VR200, VR300, and other AI server platforms.
• Adoption progress of M9/10 materials, high-layer-count HDI/MLPCB, and mSAP in AI servers/switches.
• Changes in share, qualification, and orders for WUS, Delton, and Sytech among major AI customers.
• The sustainability of CCL price increases and their transmission to Sytech's gross margin and revenue.
• Changes in PCB capacity layout across Mainland China, Taiwan, and Southeast Asia.