KB LAMINATES (01888) surged over 7% in the morning session. As of press time, the stock was up 6.58% to HK$12, with a turnover of HK$148 million.

China International Capital Corporation issued a research report stating that current global computing power demand is experiencing systematic expansion, with GPU and ASIC undergoing significant volume growth. Meanwhile, the application of high-frequency, high-speed materials (M9, quartz cloth, etc.) and high-end multilayer designs are expected to significantly enhance single board value, driving both volume and price growth in the PCB industry.

Following a review of overseas computing power chips (GPU+ASIC) and network communication equipment (switches + optical modules) demand, the firm calculated that the AI-related PCB market size is expected to reach $5.6 billion/$10 billion in 2025/2026 respectively.

The firm further noted that benefiting from AI's robust demand for computing power infrastructure, PCB board and CCL markets continue to maintain high prosperity, with core supply chain suppliers accelerating capacity expansion. After reviewing expansion announcements from 7 A-share listed companies, their combined announced investments totaled approximately 32 billion yuan for PCB capacity expansion, with products gradually upgrading toward high-end applications. However, due to the longer yield ramp-up cycles for high-end products and the immaturity of localized supply chain supporting in Southeast Asia, capacity release efficiency may lag behind demand growth, meaning the supply-demand gap will continue to exist in the medium term.