The acceleration of AI computing infrastructure construction is driving demand for high-end PCBs. Against the backdrop of the recent explosion in AI technology, global tech giants are expanding their AI infrastructure to meet the massive growth in computing needs; multiple application terminals such as AI servers, automotive electronics, and 5G communication are continuously stimulating demand for high-end PCBs. According to Prismark, the global PCB industry's output value is projected to grow from $73.6 billion in 2024 to $96.4 billion in 2029, representing a CAGR of 5.6%.

PCB equipment includes drilling equipment, exposure equipment, plating equipment, forming equipment, inspection equipment, and lamination equipment. Firstly, drilling equipment primarily consists of mechanical drilling and laser drilling, with mechanical drilling mainly used for through-holes and laser drilling more suitable for blind and buried vias. According to Han's CNC's prospectus, the global drilling equipment market is forecast to grow from $1.47 billion in 2024 to $2.399 billion in 2029, a CAGR of 10.3%. Key players include Han's CNC, Germany's Schmoll, and Da Liang in mechanical drilling, and Han's CNC, Inno Laser, Japan's Mitsubishi, and US-based ESI in laser drilling, with Han's CNC making rapid progress to become a core drilling equipment supplier for major Chinese PCB manufacturers. Secondly, the global exposure equipment market is expected to expand from $1.204 billion in 2024 to $1.938 billion in 2029, a CAGR of 10.0%; domestic manufacturer XINYI MICROELECTRONIC EQUIPMENT has become a global leader in PCB direct imaging lithography equipment. Thirdly, the global market size for specialized plating equipment is anticipated to increase from $508 million in 2024 to $811 million in 2029, a CAGR of 9.8%, with major participants including Dongwei Technology, Atotech, and Jingming Machinery. Finally, key development trends for AI PCBs will involve narrower line widths, increased layers, and higher precision, which will impose greater and more stringent demands on PCB equipment.

PCB drill bits, as core consumables, are experiencing volume and price increases driven by AI. The market space, as shown in Dingtai Advanced Material's prospectus, indicates global PCB drill bit sales reached 4.5 billion yuan in 2024 and are projected to grow to 9.1 billion yuan by 2029, a CAGR of 15.0%. Regarding the competitive landscape, global major players include Dingtai Advanced Material, Japan's Union Tool, China Tungsten and Hightech (Jinzhou Precision), and Topoint Technology, with Dingtai Advanced Material ranking first in global market share. Looking at trend outlooks, on one hand, the application of PCBs in AI servers is developing towards higher layer counts and density, promoting the advancement of "micro-diameter drill bits, high aspect ratio drill bits, and coated drill bits." Coupled with technical challenges like easy wear and breakage during drilling, and stringent requirements from downstream manufacturers on breakage rates, market entry for new players is difficult. On the other hand, driven by the high computational demands of AI servers, leading manufacturers represented by Nvidia may gradually adopt M9 material substrates characterized by low loss and high stability. The high processing difficulty of M9 and the release of terminal market demand are expected to stimulate drill bit upgrades and capacity expansion, likely leading to a scenario of rising volume and prices for drill bits.

SMT equipment is being upgraded and its value reassessed through AI iteration and refinement. The main equipment in an SMT production line includes printing equipment, placement equipment, dispensing equipment, and reflow soldering equipment. The market space, based on data from QYResearch and GlobalGrowth Insights, is estimated to reach $5.595 billion globally by 2025. In terms of product structure, placement machines account for approximately 59%, printing equipment about 18%, and reflow soldering equipment about 12%. In the competitive landscape, while Chinese companies are highly competitive in segments like printing, soldering, and inspection, a few advanced foreign equipment manufacturers still dominate the high-end placement machine sector. The trend outlook suggests that with AI development, electronic components are trending towards miniaturization and thinner profiles, imposing higher requirements on equipment performance and precision.

Key companies to focus on include Dingtai Advanced Material and China Tungsten and Hightech in the materials segment, and Han's CNC, Han's Laser, XINYI MICROELECTRONIC EQUIPMENT, GKG Precision Machine, Dongwei Technology, JT Electronics, and Inno Laser in the equipment segment. Risks to consider include slower-than-expected technological progress, structural fluctuations in demand, and intensified competition from new entrants and product homogenization.