AI Infrastructure Drives High Growth in PCB/CCL; Initiate Buy Ratings on Three Leaders

Overview

This report focuses on investment opportunities in the PCB and CCL (copper-clad laminate) industries amid the AI infrastructure boom. With exponential growth in AI chips and data center equipment, PCBs are transitioning from years of slow growth into a rapid expansion phase. The global PCB market is expected to grow from USD 85 billion in 2025 to USD 173 billion in 2030 (CAGR ~15%). Within this, the AI PCB and CCL markets will accelerate from USD 7 billion / USD 3 billion in 2025 to USD 75 billion / USD 39 billion in 2030, representing CAGRs of ~60% / ~70%, respectively. This growth stems not only from increased shipments of AI servers and switches but also from significant per-unit value uplift—material upgrades from M8 to M9/10, higher design complexity, and increased layer counts are driving single-GPU PCB value from USD 200–250 to USD 1,500. Jefferies initiates coverage on three strategically positioned players: Wus Printed Circuit (high-speed switches), Guanghe Technology (server CPU PCBs), and Shengyi Technology (high-end AI CCL)—all rated Buy.

Core views

The global PCB market is undergoing structural expansion, with AI infrastructure as the primary engine. Over the past decade, the global PCB market stagnated around USD 60–80 billion. The AI wave has fundamentally altered this dynamic. As tech giants like NVIDIA and Amazon ramp up AI compute investments, demand for data center servers and switches is surging. Rigid PCBs (RPCB, HDI, substrates, etc.), favored for high-speed signal transmission, now account for 85% of total PCB output in 2025, up from 81% in 2020. Material and process upgrades are the core drivers of ASP growth. AI equipment makers have adopted M8-grade materials to support 112Gbps Ethernet standards. To meet 224Gbps requirements, the industry is developing M9 materials, with a key upgrade being the shift from low-Dk glass fiber to Qglass, which significantly increases CCL pricing. Meanwhile, increasing HDI layers, adoption of mSAP (micro-via blind via) processes, and CoWoP (chiplet integration directly onto PCBs) are expanding application scope. For example, NVIDIA’s per-GPU PCB value is projected to rise from USD 200–250 for H100/200, to ~USD 400 for GB200/300, and to ~USD 1,500 for VR300 (launching in 2027)—a 3–4x / 4–5x value increase. This dual driver of content-value growth and volume growth underpins the rapid TAM expansion in AI PCB/CCL. Mainland China maintains >50% of global PCB capacity, though geographic diversification is underway. While many PCB manufacturers are building or expanding capacity in Southeast Asia (primarily Thailand) to mitigate geopolitical risks, China’s mature, integrated PCB ecosystem continues to offer advantages in efficiency, cost, and reliability. Rapid supply chain shifts and accelerating product cycles favor suppliers with deep experience, leading-edge processes, and consistent delivery capabilities. Each of the three covered companies leads in its niche segment. Wus Printed Circuit is a Tier-1 global supplier of high-speed switch PCBs, with a technological edge in ultra-high-layer (>30L) PCBs and an estimated ≥50% market share in 800G/1.6T high-speed switches. AI PCB profit contribution is forecast at ~60% in 2025, rising to ~80% in 2027 and exceeding 90% by 2029–2030. Guanghe Technology specializes in server CPU PCBs, holding a 10–15% market share, with this segment contributing over 50% of revenue and profit in 2025. The report expects the PCIe 5.0 to 6.0 transition (starting in H2 2026) to generate significant new design demand and ASP uplift. Shengyi Technology is China’s domestic leader in high-end CCL and one of the few Chinese firms globally competitive with international peers. Through organic development and strategic acquisitions (acquired Shengyi Electronics in 2013; listed SYE in 2021), it has secured advanced PCB manufacturing capabilities. SYE is now a key PCB supplier for Amazon’s AI servers, delivering strong growth driven by Trainium chip shipments. Shengyi’s AI PCB/CCL profit contribution is projected to rise from <20% in 2025 to >50% in 2027 and nearly 70% by 2029–2030.

Analysis framework

The report employs a supply-demand framework and vertical industry transmission logic. First, from the demand side, it assesses how AI infrastructure investment drives PCB demand: evaluating capex plans and chip shipment forecasts from global AI players (NVIDIA, Amazon, Google, Meta, etc.), combined with PCB count and value per device, to derive AI PCB demand. Second, from the supply side, it examines midstream material upgrades and process advancements: analyzing the industrialization progress of M8→M9/10 material evolution and HDI/mSAP/CoWoP processes to quantify their impact on PCB value. Third, from a supply chain perspective, it evaluates competitive dynamics and geographic shifts: assessing capacity expansion plans and competitiveness across China, Taiwan, Japan, and elsewhere. Finally, for each of the three covered companies, the report forecasts revenue and profit trajectories through TAM sizing, market share tracking, cost structure analysis, and capacity planning. Valuation is based on DCF (terminal year 2026E, WACC 9.8%, terminal growth 6.5–7.0%), cross-validated with relative metrics like P/E and PEG.

Methodology notes

• Industry/Sector Analysis FrameworkSupply-demand framework

  Understanding market expansion through the dynamic balance between demand (AI infrastructure investment) and supply (PCB capacity and technological advancement)

  The report decomposes global PCB market growth into two dimensions: (1) increased shipments of AI servers/switches, and (2) rising per-device PCB value due to material and process upgrades. The ~15% CAGR reflects the multiplicative effect of these factors. On the supply side, capacity expansions in China and Southeast Asia and technology investments are key considerations.

• Industry/Sector Analysis FrameworkUpstream-Midstream-Downstream Transmission

  How material costs, process complexity, and capacity constraints transmit from upstream to midstream PCB manufacturers’ margins and pricing power

  The report notes that CCL material upgrades (e.g., scarcity of high-end glass fiber in M9) and advanced processes (e.g., mSAP micro-vias) raise PCB manufacturing difficulty and cost, but also enable technologically capable suppliers to create high-value products and stronger pricing power—demonstrating how innovation at each link amplifies economic impact downstream.

• Company Fundamentals & Financial FrameworkProduct Mix and Business Segment Shift

  Forecasting overall company growth and profitability improvement through evolving contributions from high-value segments (e.g., high-speed switches, server CPU PCBs, AI CCL)

  All three companies are expected to see significant increases in AI-related revenue and profit contributions from 2026–2028. This shift from traditional PCBs to high-value AI PCB/CCL not only accelerates top-line growth but also enhances profitability through higher ASPs and gross margins—a classic example of product mix effect.

• Valuation MethodologyDCF (Discounted Cash Flow)

  Present value calculation based on 2026E financial projections, WACC of 9.8%, and terminal growth of 6.5–7.0%

  Target prices for all three companies are derived using DCF. The choice of 2026E as the terminal year reflects the early-stage, high-growth nature of AI PCB/CCL businesses. WACC of 9.8% represents average cost of capital for Chinese tech firms; terminal growth of 6.5–7.0% aligns with long-term market growth and inflation expectations.

• Valuation MethodologyPE/PEG valuation

  Using relative valuation to cross-check DCF results, assessing whether implied P/E and PEG multiples are justified by growth rates

  Implied 2026E P/Es are 41x / 45x / 44x, and 2027E P/Es are 26x / 27x / 28x. Given 3–5-year CAGRs of 43–54%, these multiples appear reasonable, with PEGs of only 0.6–0.9x, indicating no significant overvaluation.

• Industry/Sector Analysis FrameworkMarket Concentration and Competitiveness Analysis

  Assessing competitive intensity and risk resilience in sub-segments using metrics like market share and CR10

  The report notes the PCB market is relatively fragmented (CR10 < 40%), while the CCL market is more concentrated (CR10 > 70%). This implies healthier and more stable competition in niche PCB segments (e.g., high-speed switches), granting leaders like Wus and Guanghe stronger pricing power and market share protection.

Asset mapping & comparison

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

• Wus Printed Circuit (002463.SS)

  Leader in high-speed switch PCBs, benefiting from rising 800G/1.6T adoption and ASP uplift

  Strengths

  ≥50% global market share in high-speed switch PCBs; deep expertise in >30L ultra-high-layer technology; 800G/1.6T ASPs 2–7x higher than 400G; strong customer relationships and technical barriers

  Weaknesses

  Switch market competition is healthy but limits top-end pricing power; AI server PCB market is more competitive, requiring capacity expansion and process innovation to scale; uncertainty around Southeast Asia capacity ramp-up

  Comparison

  More specialized in switches than Guanghe (smaller TAM but higher focus); unlike Shengyi, primarily a PCB player with limited CCL exposure—AI CCL growth is fast but small in scale

  Risks

  Slower-than-expected global AI infrastructure investment or AI chip demand decline; geopolitical risks prompting customer diversification or capacity relocation; lower-than-expected 800G/1.6T adoption; supply constraints on high-end glass fiber

• Guanghe Technology (001389.CH/1989.HK)

  Focused on server CPU PCBs, benefiting from CPU demand growth (proxy AI workloads) and PCIe 5.0→6.0 migration-driven redesigns

  Strengths

  10–15% market share in server CPU PCBs—industry-leading in a stable segment; benefits from proxy AI and recommendation system workloads; PCIe 6.0 migration creates meaningful ASP upside; Thailand capacity ramping faster than peers, enabling quick profit recovery

  Weaknesses

  CPU PCB TAM is limited; growth may plateau within 3–4 years; CPU PCB growth is single-digit to low-teens, lagging AI PCB hyper-growth; numerous competitors constrain pricing power despite stable market

  Comparison

  Smaller TAM than Wus’ switch segment but more predictable growth; lacks CCL business unlike Shengyi, limiting growth ceiling due to single-product focus

  Risks

  Overestimation of CPU demand from proxy AI; slower-than-expected PCIe 6.0 adoption; declining CPU share in AI inference chips reducing demand growth; customer concentration risk (key client order volatility)

• Shengyi Technology (600183.CH)

  China’s leading high-end CCL supplier, benefiting from AI CCL’s hyper-growth (70% CAGR) and value chain uplift

  Strengths

  ~5% global high-end CCL market share—top among Chinese firms with vast import substitution potential; AI CCL contribution rising rapidly from <20% (2025) to >50% (2027); acquired SYE to gain direct access to AI server supply chains (e.g., Amazon Trainium); scarcity and high barriers of M9/10 materials grant strong pricing power

  Weaknesses

  International competitors (EMC, TUC, etc.) have deep tech and customer bases; Shengyi’s global share remains modest despite rapid progress; CCL prices are volatile—recent increases may not be sustainable; SYE contributes significantly but is only ~37% owned, limiting full profit consolidation

  Comparison

  Only dual CCL-PCB player among the three, offering highest growth ceiling; but faces fiercest global competition and greatest tech catch-up pressure

  Risks

  Unsustainable CCL price increases leading to margin compression; slower-than-expected M9/10 commercialization; Amazon AI chip iteration or order shifts; geopolitical barriers slowing import substitution

Key data

• Global PCB Market SizeUSD 85 billion in 2025; USD 173 billion in 2030CAGR ~15%; first clear acceleration phase for the global PCB market
• AI PCB Market SizeUSD 7 billion in 2025; USD 75 billion in 2030CAGR ~60%; 4x faster than overall PCB growth, the primary growth engine
• AI CCL Market SizeUSD 3 billion in 2025; USD 39 billion in 2030CAGR ~70%; outpacing PCB growth, reflecting material upgrades and value uplift
• Per-GPU PCB Value EvolutionH100/200: USD 200–250 → GB200/300: ~USD 400 → VR300: ~USD 1,5003–4x increase, primarily driven by material upgrades (M8→M9/10) and process advances (e.g., backplane integration)
• Wus Printed Circuit High-Speed Switch PCB Market Share≥50% (for 800G/1.6T switches)Global Tier-1 player with clear advantage in >30L ultra-high-layer PCB technology
• Wus Printed Circuit AI PCB Profit Contribution~60% in 2025; ~80% in 2027; >90% in 2029–30Business mix upgrade drives profit growth faster than revenue growth
• Guanghe Technology Server CPU PCB Market Share10–15%Stable niche segment; PCIe 5.0→6.0 transition will drive new design demand
• Guanghe Technology CPU PCB Revenue Share>50% in 2025Focused strategy makes it a specialist in server CPU PCBs
• Shengyi Technology AI CCL Profit Contribution<20% in 2025; >50% in 2027; ~70% in 2029–30Faster AI CCL growth is transforming Shengyi into an AI-focused enterprise
• Shengyi Technology Global High-Speed CCL Market Share~5% (2025)Leader among Chinese firms, competing globally with international peers
• Wus Printed Circuit Net Profit CAGR (2026–28)43%7% above consensus
• Guanghe Technology Net Profit CAGR (2026–28)54%17% above consensus
• Shengyi Technology Net Profit CAGR (2026–28)48%Significantly above consensus
• Global AI Capex Scale (2030)~USD 2 trillionDerived assuming server market = AI capex and PCB = 5% of server value
• Wus Printed Circuit Target PriceRMB 130Based on 2026E DCF; implies +33% upside; 2026E P/E 41x, PEG 0.9x
• Guanghe Technology Target PriceA-share RMB 190; H-share HKD 200A-share implies +27% upside, H-share +26%; 2026E P/E 45x/41x, PEG 0.8x
• Shengyi Technology Target PriceRMB 95Highest implied upside (+37%); 2026E P/E 44x, PEG 0.9x

Impact & implications

The report has multi-layered market implications. First, it reframes the PCB industry: long undervalued due to stagnant growth, it is now repositioned as a high-growth sector powered by quantifiable AI infrastructure demand. Second, it highlights shifting pricing power along the value chain: material and process upgrades not only increase industry value but also reshape power dynamics—firms mastering advanced technologies (e.g., Wus in high-layer HDI, Shengyi in M9 CCL) gain stronger pricing leverage. Third, it reshapes perceptions of Chinese competitiveness: Chinese PCB/CCL firms are not passive participants but active leaders. Wus, Guanghe, and Shengyi have built defensible advantages through specialization, technological progress, and customer stickiness. Finally, it offers actionable insights for investors: the combination of high growth and reasonable valuations (PEG 0.6–0.9x) presents attractive long-term opportunities. However, risks remain: slower-than-expected AI capex growth, geopolitical uncertainty, and upstream material/process bottlenecks could pressure current expectations.

Risks

• Slowing or declining global AI infrastructure investment: If tech giants reduce capex, AI PCB/CCL demand growth could fall sharply below the current 60–70% CAGR expectation
• Geopolitical uncertainty: Escalating U.S.-China trade/tech restrictions could force customers to shift production or sourcing away from Chinese suppliers, pressuring market share and pricing power
• Upstream material bottlenecks: Global supply of M9/10-grade high-end glass fiber remains constrained; delays could limit PCB capacity ramps and squeeze margins
• Technology iteration risk: Commercialization timelines for material upgrades and new processes (e.g., mSAP, CoWoP) may lag expectations due to scale-up challenges
• Customer concentration risk: Order volatility or demand cuts from key clients (NVIDIA, Amazon, Google, etc.) would directly impact revenue forecasts
• Capacity expansion risk: All three companies plan large capex (~RMB 1.8B for Wus, similar for others); delays or underutilization would hurt ROI and profit growth
• Intensifying price competition: High growth may attract new entrants, eroding ASP gains and compressing margins
• Supply chain diversification risk: Geopolitical pressures may push customers to mandate multi-sourcing, limiting Chinese suppliers’ order concentration and pricing leverage

What to watch

• Quarterly AI capex guidance and actual spending by global tech giants: Direct indicator of AI infrastructure build-out pace
• Chipmakers’ (NVIDIA, AMD, etc.) shipment forecasts and new product launches: PCB specification upgrades determine ASP upside
• Order tracking and customer mix changes for Wus, Guanghe, and Shengyi: Watch for new wins or shifts in existing client orders
• Capacity expansion progress and utilization rates: Key to realizing profit growth targets
• CCL pricing trends and supply dynamics: Sustainability of recent price hikes and competitor capacity additions
• Geopolitical developments affecting trade policy: Potential impact on Chinese tech exports and customer choices
• Global supply and pricing of key raw materials (high-end glass fiber, resins): Impact on PCB/CCL costs and margins
• Competitor (Taiwanese, Japanese) capacity and technology progress: Potential pressure on market share and pricing