Chinese PCB Makers' Capex Hits Record Highs, Driven by AI Server Demand
0xBroomberg
More than 20 Chinese PCB companies disclosed aggressive expansion plans in the first half of 2025, pushing industry-wide capital spending toward a historic peak — all driven by surging global demand for high-end circuit boards used in AI servers.
What is a PCB, and why does it suddenly matter for AI?
A PCB — printed circuit board, the physical "baseboard" that holds chips and components — is in every phone and laptop. Nothing new.
AI servers need a fundamentally different kind: more layers, denser interconnects, far higher technical barriers and unit prices than consumer-grade boards.
This means → the firms that can manufacture AI-server-grade boards capture this demand wave. Product-mix upgrades, not sheer volume, are the real reason companies are pouring capital in.
How much money are we talking about — capex quadrupled in one quarter?
Shenghong Tech (胜宏科技) posted first-quarter capex of RMB 3.6 billion, up from RMB 730 million a year earlier — nearly a fourfold jump.
Compeq (华通电脑) saw its capex rise from RMB 660 million to RMB 1.5 billion over the same period, more than doubling.
In plain terms = these are not incremental additions. Individual projects run into the hundreds of millions of dollars — companies are betting the house on capacity.
After the buildout rush, who actually wins?
More than 20 firms are expanding simultaneously, but AI-server boards have long yield-ramp cycles and high technical barriers. Spending money on a factory does not guarantee a qualified product.
This means → the first movers to complete their yield ramps will pull ahead. The industry could shift quickly from "everyone is investing" to winner-takes-most.
This reflects a deeper pivot: competition in PCB has moved from scale to the ability to mass-produce high-end product lines.
Content is for reference only, not financial advice.