Goldman Sachs Thailand and Vietnam Technology Visit: AI Infrastructure Is Driving Capacity Expansion in the PCB, Networking, and AI Server Supply Chains

Overview

This report summarizes Goldman’s main observations after visiting 10 companies in Thailand and Vietnam from July 7 to July 10, 2026, covering AI-server and networking-supply-chain segments including PCB, drill pins, optical modules, FAU, and ODM. The core conclusion is that AI infrastructure demand, global client requirements for location diversification, and geopolitics still drive Southeast Asia’s capacity expansion, while Mainland China remains the core production hub due to a more complete supply chain and stronger manufacturing efficiency.

Core views

First, AI-related capacity expansion continues to advance, covering PCBs for AI servers, CPO switches, AI servers, and optical modules, as well as optical engines and edge AI devices. Second, Vietnam, Thailand, and Malaysia form different client clusters: Vietnam is more closely tied to the Mainland China supply chain, Thailand is attracting PCB suppliers, and Malaysia is handling part of certain cloud provider chains. Third, Southeast Asia factories can produce high-value AI datacenter products, but with efficiency below Mainland China; new-product quality, speed, and confidentiality may still be prioritized to remain in Mainland China. Fourth, low labor costs are partly offset by lower manufacturing efficiency and higher materials transport and tariff costs. Fifth, ODM operators remain constructive on the AI capex cycle, with demand sources broadening from global CSPs to model developers, NeoCloud, sovereign AI, enterprises, and edge AI devices.

Analysis framework

The report is based on onsite factory visits, management conversations, and observations of company capacity progress, with a cross-regional comparison of AI server, networking, and PCB supply-chain capacity expansion in Thailand and Vietnam, combined with Goldman’s forecasts for AI server TAM, CSP capex, and AI-chip shipments for broader sector judgment.

Methodology notes

• Industry researchFactory visits and management interviews

  Validate capacity, products, costs, and client demand through on-site inspections and conversations with management.

  The six key points come from supplier-factory visits in Thailand and Vietnam, covering capacity expansion, regional specialization, product tiers, labor, production cost, and AI investment persistence.

• Supply chain analysisLocation diversification and cost-efficiency comparison

  Compare Mainland China, Vietnam, Thailand, and Malaysia by differences in supply-chain distance, manufacturing efficiency, labor costs, and client demand.

  The report finds that Southeast Asia’s expansion mainly meets global client diversification needs, but Mainland China still retains an advantage in end-to-end supply-chain strength and manufacturing efficiency.

Asset mapping & comparison

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

• 002938.SZ

  Avary is expected to benefit in Thailand from demand for server PCBs, optical module PCBs, and smart-device PCBs.

  Strengths

  The Thailand factory has high automation and uses renewable energy to support speed, quality, output, and sustainability.

  Weaknesses

  The report marks it as not covered and notes no Goldman rating or target price.

  Comparison

  Like other PCB manufacturers, its expansion is primarily driven by global client location diversification and AI-product demand.

  Risks

  Overseas capacity ramp, lower efficiency than Mainland China, and customer validation pace.

• 300476.SZ

  Victory Giant is building out high-end PCB capacity across three Thailand plants: A1, A2, and A3.

  Strengths

  A1 is already in mass production, A2 is under construction and targeting mass production in 3Q26; management is constructive on Thailand high-end PCB expansion.

  Weaknesses

  New overseas capacity still needs validation for manufacturing efficiency and ramp quality.

  Comparison

  Compared with non-covered peers, Victory Giant has a CL-Buy view and benefits from demand from top global customers.

  Risks

  Project progress, capacity utilization, demand fluctuations, and geopolitical changes.

• 002463.SZ

  WUS benefits from AI networking PCB demand and higher overseas capacity in Thailand.

  Strengths

  Thai output continues to rise, with utilization above 90% in 1Q26 and more than 70% of global top-tier networking customers having completed factory qualification.

  Weaknesses

  Still faces challenges in overseas manufacturing efficiency and cost control.

  Comparison

  It holds a leading position in the AI networking PCB market, and product mix upgrades are expected to drive profitability.

  Risks

  AI networking demand slows, customer qualification falls short of expectations, or overseas costs exceed expectations.

• 601138.SS

  FII, as an ODM, benefits from demand for AI infrastructure, servers, switches, and components.

  Strengths

  Management highlighted strong R&D, fully automated production, a broad product portfolio, and diversified production sites; it has over 15 years of Vietnam footprint.

  Weaknesses

  Overseas expansion still depends on the persistence of client demand and supply-chain coordination.

  Comparison

  Compared with vendors newly entering Vietnam, FII is more mature in local production experience, depreciation efficiency, supply chain, and government relations.

  Risks

  Shifts in AI capex cycles, customer concentration, geopolitics, and delivery pace.

• 603175.SS

  Dynamic Electronics’ Thailand capacity expansion is aimed at AI server and optical transceiver PCBs.

  Strengths

  Rmb3.3bn capex is dedicated to additional capacity at P5 and P5A, and management expects scale growth, product-mix upgrading, and efficiency improvements to lift profitability.

  Weaknesses

  In the near term, rising material costs and margin pressure from ramping new capacity pose risks.

  Comparison

  Like other PCB manufacturers, it benefits from AI PCB demand, though the report marks it as not covered.

  Risks

  Capex payback, material costs, capacity ramp pace, and AI demand volatility.

• 001389.SZ

  Delton’s Thailand factory primarily serves overseas client demand for AI PCBs.

  Strengths

  A US$80m expansion plan for high-end PCB capacity and improving Thailand plant utilization support revenue growth in 1H26.

  Weaknesses

  The report marks it as not covered; ongoing expansion in foreign capacity still needs continuous validation.

  Comparison

  It belongs to the same AI PCB expansion beneficiary chain as Avary, Victory Giant, and WUS.

  Risks

  Customer demand, product-spec upgrade pace, utilization, and cost control.

• 301377.SZ

  DTech’s Thailand factory serves PCB drill-pin demand from overseas factories of its main clients.

  Strengths

  Monthly output reached 6 million pieces in April 2026, and management expects continued ramp in 2H26.

  Weaknesses

  The business is more of an upstream consumable, with flexibility tied to the overseas expansion pace of PCB clients.

  Comparison

  Unlike PCB manufacturers, DTech benefits from drill-pin demand supported by overseas PCB capacity expansion.

  Risks

  Potentially slower expansion by major clients, lower-than-expected utilization, and price competition.

Key data

• Research period2026-07-07 to 2026-07-10Goldman conducted a technology supply-chain tour in Thailand and Vietnam.
• Number of companies visited10 companiesCoverage includes PCB, drill pins, optical modules, FAU, and ODM.
• Distance between Vietnam and Mainland China supply chainabout 2-3 hours by roadFrom the Guangxi-Guangdong? border corridor to major northern Vietnam production hubs such as Bac Giang or Bac Ninh.
• Southeast Asia potential cost premiumup to about 15%-20%If key raw materials like copper-clad laminates must be shipped from Mainland China, tariffs and freight can raise total costs.
• Thailand factory productivity gapOne Mainland China worker can produce as much as up to 3 workers in ThailandManagement interviews suggest low labor cost needs to be assessed together with lower production efficiency.
• WUS Thailand capacity utilizationAbove 90% in 1Q26More than 70% of global first-tier networking customers have completed factory qualification.
• Dynamic Thailand capexRmb3.3bnMainly used for incremental AI server and optical transceiver related PCB capacity at the P5 and P5A factories.
• Delton Thailand subsidiary expansion planUS$80mAnnounced in April 2026 to expand high-end PCB capacity in Thailand.
• DTech Thailand factory monthly outputReached 6 million pieces by April 2026Management expects continued ramp in 2H26.
• Goldman AI server implied AI-chip shipment forecast revisionsUp 14%/22%/14% for 2026E/2027E/2028E, respectivelyFrom June updates in the Global Server TAM cited in the report.
• U.S. CSP capex forecast revisionsUp 8%/27%/25% for 2026E/2027E/2028E, respectivelySupports the constructive view on AI server demand.
• China CSP capex forecast revisionsUp 37%/44%/55% for 2026E/2027E/2028E, respectivelyReflects still-strong AI infrastructure demand.

Impact & implications

The report is constructive on AI server, AI PCB, networking PCB, optical module, and ODM supply chains. For investors, the key is not simply to view Southeast Asia as a low-cost option, but to evaluate delivery capability and margins determined by client location diversification, AI-spec upgrades, capacity ramp, automation level, and supply-chain distance together. Mainland China still has a strong manufacturing-efficiency advantage, but the strategic relevance of Thailand and Vietnam is rising.

Risks

• If the upcycle in AI capex slows, demand for AI servers, AI PCBs, optical modules, and ODMs would be affected.
• Lower manufacturing efficiency in Southeast Asia versus Mainland China may offset low labor-cost advantages.
• Cross-border transport of raw materials, tariffs, and logistics costs could add 15%-20% to production costs.
• Ramping of overseas new capacity may bring short-term margin pressure, yield risks, and delivery uncertainty.
• Geopolitical shifts, client-location policies, and changes in supplier qualification pace may affect utilization.
• If clients no longer pay a premium for geographic diversification, profitability of overseas capacity could be pressured.

What to watch

• Production ramp schedules and utilization for AI PCB, AI server, and optical-module capacity in Thailand and Vietnam.
• Whether global CSP, NeoCloud, sovereign AI, and enterprise AI capex remains strong.
• Progress in customer qualification and order visibility for covered companies such as WUS, Victory Giant, and FII.
• Whether material localization, automated production, and digital tooling in Southeast Asia can reduce the efficiency gap.
• Whether product specialization between Mainland China and Southeast Asia factories changes, particularly for newly introduced high-end products.
• The impact of depreciation, material, and freight costs from overseas expansion on margins.