Dtech Expands Thai Capacity to Capture Growing Overseas PCB Drill-Needle Demand

Overview

This report is based on Goldman Sachs’ Thailand / Vietnam Tech Tour visit to Dtech’s (301377.SZ) Thailand factory. The core content is that Dtech is expanding Thailand capacity to serve rising drilling-needle demand from major PCB customers’ overseas plants. The company covers PCB drilling needles, milling cutters, automation equipment, and surface coating materials, serving data centers, automobiles, and consumer electronics, with a global footprint in Mainland China, Thailand, and Germany.

Core views

The report concludes that Dtech management holds a positive stance on PCB drilling-needle demand and overseas market growth. Thailand factory monthly capacity reached 6 million units in April 2026 and is expected to continue ramping in the second half of 2026; the company also plans to inject up to RMB 300 million into its Thailand subsidiary, reflecting its intent to deepen its overseas strategy. Goldman Sachs further extrapolates this positive signal to China AI PCB and CCL suppliers, arguing that AI server and high-speed switch upgrades will bring PCB/CCL specification improvements, higher dollar-denominated value per unit, and growing global demand, as well as higher ASPs and margins than mainstream PCB.

Analysis framework

The report uses on-site research and supply-chain mapping methods: first, it visits the Thailand factory to understand Dtech’s capacity, customer demand, and overseas expansion pace, then maps management’s positive assessment of AI PCB demand to China PCB and CCL suppliers. The appendix also provides the Goldman factor framework, M&A rank, rating definitions, and disclosure notes, while Dtech itself is Not Covered.

Methodology notes

• Company researchThailand / Vietnam Tech Tour

  On-site visits and management interaction

  Through visits to Dtech’s Thailand factory and discussions with management, assess PCB drilling-needle demand, capacity expansion, and overseas customer production pace.

• Supply-chain mappingRead-across to China PCB

  Project Dtech management feedback to the China AI PCB/CCL supply chain

  The report maps positive signals from overseas PCB drilling-needle demand to China AI PCB and CCL suppliers, focusing on potential value uplift, ASP uplift, and margin improvement from server and high-speed switch upgrades.

• Goldman internal frameworkGS Factor Profile

  Growth, Financial Returns, Multiple, Integrated factor profile

  The Goldman factor profile compares a stock with peers in market and sector across growth, financial returns, valuation multiple, and integrated factors as contextual investment information.

Asset mapping & comparison

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

• Dtech Technology (301377.SZ)

  Report subject; Not Covered

  Strengths

  Has capabilities in PCB drilling needles, milling cutters, automation equipment, and surface coating materials; has presence in Mainland China, Thailand, and Germany; Thai capacity is ramping.

  Weaknesses

  The report does not provide earnings forecasts, a rating, or a target price; disclosures indicate an investment banking relationship, which may require attention to potential conflicts of interest.

  Comparison

  Used as a read-across for the China AI PCB/CCL supply chain, while Dtech itself is more focused on PCB drilling needles and related manufacturing consumables/equipment.

  Risks

  Overseas demand may underperform, customer production planning may change, Thai capacity ramp may be delayed, and international execution risks may materialize.

• Victory Giant

  China AI PCB supply-chain read-across; Goldman Sachs Buy

  Strengths

  The report believes demand for AI PCB and CCL, along with higher ASPs and margins, will benefit leading players.

  Weaknesses

  No company-level financials and valuation details are developed in this report.

  Comparison

  Listed as one of Goldman’s favored China PCB/CCL-related names.

  Risks

  AI demand volatility, valuation compression, and a slower-than-expected server upgrade cycle.

• WUS

  China AI PCB supply-chain read-across; Goldman Sachs Buy

  Strengths

  Potential beneficiary of an industry trend toward higher PCB specifications for AI servers and high-speed switches.

  Weaknesses

  No specific earnings forecast or target-price analysis is provided in this report.

  Comparison

  Listed alongside Victory Giant, ShengyiTech, and Shennan Circuits as Goldman Buy candidates.

  Risks

  Order growth below expectations, intensified competition, and product mix improvement lag.

• ShengyiTech

  China CCL/PCB supply-chain read-across; Goldman Sachs Buy

  Strengths

  AI PCB and CCL generally carry higher value, ASP, and margins than mainstream PCB, which could support leading players’ profit growth.

  Weaknesses

  The report does not provide a detailed financial model.

  Comparison

  As a leading CCL/PCB-related company, it is included in the positive supply-chain read-across.

  Risks

  Raw-material prices, AI demand pace, customer qualification, and mass-production timing risks.

• Shennan Circuits

  China PCB supply-chain read-across; Goldman Sachs Buy

  Strengths

  The report believes server and high-speed switch upgrades will drive demand growth for high-end PCB.

  Weaknesses

  The report does not expand on company-specific valuation and earnings forecasts.

  Comparison

  Along with other Goldman Buy names, it reflects the AI PCB supply-chain opportunity.

  Risks

  High-end PCB demand below expectations, and volatility in utilization and margins.

Key data

• Thailand factory monthly capacity6 million unitsManagement said this level was reached in April 2026.
• Planned capital increase cap for Thailand subsidiaryNo more than RMB 300 millionTo deepen overseas strategy and improve competitiveness in global markets.
• Capacity ramp timelineSecond half of 2026Management expects the Thailand factory to continue ramping and support shipment growth.
• Goldman global equity coverage count3,074Disclosed as of April 1, 2026.

Impact & implications

If overseas demand from major customers continues to grow, Dtech’s Thai capacity expansion could improve its overseas shipment capability and international competitiveness. For the supply chain, AI server and high-speed switch PCB specification upgrades may benefit leading companies with AI PCB, CCL, and high-end manufacturing capabilities, supporting profit growth over the coming years.

Risks

• Overseas demand from major customers underperforms management expectations.
• Thailand factory capacity ramping is slower than planned or mismatched with customer production schedules.
• AI server and high-speed switch upgrade cycles slow, weakening the PCB/CCL value uplift logic.
• Overseas expansion introduces execution, cost, supply-chain, and local operating risks.
• Dtech, as the report subject, is Not Covered and lacks a formal Goldman Sachs rating, target price, and full financial forecast.
• Goldman discloses an investment banking client relationship with Dtech Technology over the past 12 months and expects or plans to seek investment banking compensation within the next three months.

What to watch

• The pace of Dtech Thailand factory capacity ramp in the second half of 2026.
• Major customers’ overseas factory order flow and actual production schedules.
• Progress on execution of the up-to-RMB 300 million capital increase plan for the Thailand subsidiary.
• Whether AI servers and high-speed switches are driving specification upgrades and per-unit value uplift for high-end PCB and CCL.
• Order intake, ASP, gross margin, and profitability delivery at leading Chinese AI PCB/CCL peers.