As AI applications continue to expand, global AI infrastructure is experiencing a development surge, leading to a substantial increase in PCB demand. The global server/data storage market reached $291 billion in 2024, representing a 45.5% year-over-year growth, with an expected growth rate of 36.1% maintained for 2025. AI PCB capacity expansion remains robust, directly impacting PCB processing in two ways: direct volume increases and expanding effects from process iteration. A supply-demand gap persists in the high-end drill bit market, while domestic manufacturers lead overseas competitors in both expansion initiatives and capabilities. Domestic companies conduct in-house equipment research and development, giving them an advantage in expansion pace over foreign manufacturers.

**Global AI Computing Power Construction Heats Up, Technology Iteration Drives AI PCB Demand Surge**

With the continued expansion of AI applications, global AI infrastructure development continues to surge. AI servers and high-end switches require significantly more PCB layers compared to traditional servers, and the expanded area of GPU boards drives rapid growth in PCB demand. According to the Guangdong Province Circuit Board Industry Association (GPCA), each AI server's PCB output value is expected to increase 5-7 times compared to traditional servers.

According to Prismark's latest quarterly report, the global server/data storage market size reached approximately $291 billion in 2024, up 45.5% year-over-year. The market size is expected to grow 36.1% year-over-year in 2025, with a compound annual growth rate (CAGR) of 11.2% from 2024-2029.

**Leading PCB Companies Increase Capacity Expansion, Upstream Equipment and Consumables Benefit**

According to company expansion announcements and Wuxi New District online sources, leading enterprises including Dongshan Precision, Shengyi Technology, Shenznan Circuits, and Shanghai Electric have all initiated large-scale expansion plans. However, constrained by factors such as high-end equipment delivery, key process breakthroughs and validation, and yield ramp-up, actual capacity release lags behind demand growth, creating a capacity gap for AI PCBs in the short term. Compared to overseas competitors, domestic manufacturers will capture market share through faster expansion capabilities.

**AI PCB Technology Upgrades Drive Equipment and Consumables Volume-Price Growth**

Robust AI PCB expansion directly impacts PCB processing in multiple ways: first, direct volume increases; second, expanded effects from process iteration (significant increase in high multilayer and HDI ratios). Corresponding PCB processing technologies have shown notable improvements, with enhanced thickness-to-diameter ratios, field-to-diameter ratios, and increased hole density, driving more precise and complex processes that result in volume-price growth for equipment and consumables. Third, domestic manufacturers are gradually achieving import substitution in high-end applications.

As AI PCB demand volume and technical requirements increase, usage and value of core equipment and consumables in key processes are expected to grow synchronously.

**Domestic Manufacturers Show Active Technology Iteration and Rapid Expansion**

In drilling equipment, mechanical drilling machines are primarily supplied by Germany and China, while laser drilling machines, having higher value than mechanical ones, face more intense competition dominated by US, Japanese, and German overseas suppliers, with Chinese suppliers yet to enter the high-end market.

In exposure equipment, high-end markets are dominated by US and Japanese suppliers, while domestic manufacturers have successfully replaced foreign market share in mid-to-low-end markets through price competition.

A supply-demand gap persists in the high-end drill bit market. Domestic manufacturers lead in both expansion initiatives and capabilities, with in-house equipment development giving them advantages in expansion pace over foreign manufacturers.

**Investment Recommendations**

(1) From a core equipment perspective, prioritize suppliers with leading technology and stable capacity. Recommend Core-Chip Microequipment (direct-write lithography), and suggest attention to Han's CNC (laser drilling) and Dongwei Technology (vertical continuous plating).

(2) From major consumables perspective, as AI PCBs impose higher requirements on drilling processes, drill bit usage will continue to increase substantially. Suggest attention to Dingtai Hi-Tech and China Tungsten.

(3) In PCBA segments, suggest attention to Caiger Precision Machinery and Jintuo Corporation.

**Risk Warnings**

Downstream AI PCB capital expenditure falling short of expectations; domestic manufacturer technology breakthroughs and market share expansion falling short of expectations; supply chain price volatility.