VGT's stock price soared 6.39% in early trading on Friday, leading a broad rally across the printed circuit board (PCB) manufacturing sector.

The surge follows reports of a significant industry-wide capacity expansion wave, with 13 PCB manufacturers announcing plans this year involving total investments exceeding 60 billion yuan. This strategic expansion is focused on securing high-end production capacity and global market share.

Analysts at Citigroup have warned that the capacity growth for copper-clad laminate (CCL), a key PCB material, is lagging behind the rapid expansion of downstream PCB manufacturers. This mismatch could lead to supply tightness, especially as demand from artificial intelligence applications is expected to accelerate in the third quarter. The bank also noted widespread price increases for various grades of CCL materials, adding further momentum to the sector rally.