With the rapid advancement of technology and the booming electronics and information industry, the printed circuit board (PCB) sector has maintained steady growth worldwide. In recent years, China’s PCB industry has seen consistent revenue growth, reaching approximately RMB ¥513.652 billion in 2022.

As the foundation of electronic manufacturing, PCBs are increasingly applied in IoT, infrastructure, automotive, and consumer electronics, with particularly strong demand in high-end Wi-Fi chips. This presents new growth opportunities for domestic PCB manufacturers while also imposing higher technical and operational requirements.

On November 2, PCB equipment manufacturer Allied Circuit Tech Co., Ltd. (6658.TW, “Allied Circuit Tech”) successfully listed on the Taiwan Stock Exchange at an offering price of NT$28 per share (approx. ¥6.33). Its IPO marks the addition of another key player in the PCB industry’s ongoing expansion.

However, not all companies are thriving amid the industry’s overall growth. For instance, Kinghelm (300252.SZ), despite claiming a ¥5 billion PCB project, reported a ¥60 million loss within just three quarters, raising market concerns about its competitiveness. Investors questioned whether the losses stemmed from insufficient competitive advantages, prompting Kinghelm to reevaluate its strategic direction.

Despite challenges, the PCB industry’s outlook remains promising. According to Zhiyan Consulting, China’s PCB industry generated ¥513.652 billion in revenue in 2022, with ¥71.482 billion in importsand ¥131.874 billion in exports, resulting in a ¥453.26 billion domestic market size. These figures highlight the sector’s critical role in China’s economic development.

In response to evolving market dynamics, some companies are exploring new growth strategies. For example, veteran PCB manufacturer Taiwan Union Technology Corp. (6274.TW) plans to invest ฿3.2 billion (approx. ¥650 million) in a new Thailand production facility, aiming to optimize its global supply chain and reduce manufacturing costs while expanding into new markets.

The industry’s rapid development is closely tied to technological innovation and smart manufacturing. To enhance production efficiency and precision, many firms are accelerating automation and digital transformation. Allied Circuit Tech’s breakthroughs in high-end Wi-Fi chipsand Kinghelm’s R&D efforts exemplify how innovation is driving the sector forward.

In an October 29 research note, Guolian Securities assigned a “Buy” rating to Dingtai Microtechnology (301377.SZ), citing:

• Recovering PCB demand in Q3, likely boosting H2 performance;
• Improved Q3 gross and net margins compared to Q2;
• Growth potential in film-based products, expected to become a new revenue driver.

Conclusion

While challenges persist, the PCB industry’s future remains bright. Continued technological advancements and smart manufacturing adoption will sustain steady growth. To stay competitive, companies must align with industry trends, increase R&D investment, and enhance operational efficiency. Only by doing so can they secure long-term success in this evolving market.