Technological leaps in AI servers are driving multi-layer PCBs towards higher layer counts, increased hardness, and finer micro-vias. This evolution is pushing drill bits to iterate and break through in terms of aspect ratios and coating formulations. This process innovation is shattering past development paradigms, propelling the industry's volume and price into a non-linear upward trajectory.

Simultaneously, the competitive landscape is being reshaped. Established leaders are reinforcing their moats by leveraging technological and production capacity advantages, while new entrants are rapidly entering the market through capital and mergers. This contest between old and new forces is redefining the industry map. Therefore, following the technological leap and structural transformation in AI PCB drill bits, the core task is to identify the intersection where volume and value iteration converge. The main points are as follows:

Drill bits possess a consumable attribute, giving them a value logic superior to the equipment itself. First, their Opex nature means that sustained high capital expenditure by PCB manufacturers will drive long-term demand for consumable procurement once equipment is operational, creating a perpetual growth logic for drill bits.

Second, PCB technology and processes are highly sensitive. The evolution of PCB manufacturing from traditional multi-layer boards to HDI is pulling up the unit value of drill bits. Meanwhile, new processes like mSAP and new materials such as M9 and PTFE create differentiated demands for drill bits.

Third, order fulfillment speed outpaces equipment. Compared to machinery, drill bits have shorter delivery cycles and stronger earnings elasticity. Representative companies have already seen significant performance uplifts in the first quarter of 2026.

AI PCBs drive the volume-price logic for drill bits across multiple dimensions: shipment volume, thickness, aperture, materials, and processes. Shipment volumes are projected to grow, with AI server and switch PCB CAGRs estimated at 20.7% and 12.2% respectively from 2024 to 2030.

Increasing PCB layer counts mean more drill bits are required per hole processed. The push for higher integration in AI servers will continue to shrink aperture sizes, necessitating higher-priced, higher-aspect-ratio drill bits for the same thickness.

The multiplier effect on volume and price is most pronounced regarding materials and processes. For instance, M9 material significantly reduces drill bit lifespan, thereby boosting consumption volume, while also giving rise to new processes that drive up average selling prices.

Drill bit coatings are becoming an essential path for next-generation PCB processing, with high technological sensitivity driving industry restructuring. For downstream PCB fabricators, coated bits improve production yields and help reduce costs.

For drill bit manufacturers, coatings accelerate technological iteration, facilitating a shakeout in the supply landscape. Furthermore, with a given production capacity, coatings can amplify the value per bit and enhance profitability.

From a coating process perspective, two core parameters are key: the coefficient of friction, which affects hole wall quality, where PVD-based TA-C coating technology is currently more advanced; and hardness/lifespan, where CVD diamond coating currently leads.

Companies are entering the field based on their distinct resource advantages, leading to competition between established and new players. China Tungsten And Hightech New Materials Co.,Ltd. leverages technological prowess, with its subsidiary JZ Precision leading in high-aspect-ratio product shipments.

Mingbang Photoelectric Technology Co.,Ltd. holds an advantage with overseas clients through its planned acquisition of Xiamen Zhicheng Precision, which has a high proportion of international customers.

Zhuzhou Op Edge Technology Co.,Ltd. benefits from industrial chain integration, planning to acquire Yongxin Precision to enter the PCB drill bit business, offering advantages from integrated rod material, drill bit, and coating capabilities.

Shenzhen Jemmitek Co.,Ltd. excels in coating technology, planning to acquire Diamond Coating to enter the drill bit coating field, leading in both CVD and PVD coating technologies.

Investment recommendations include Zhuzhou Op Edge Technology Co.,Ltd., with suggested attention on China Tungsten And Hightech New Materials Co.,Ltd., Shenzhen Jemmitek Co.,Ltd., and Mingbang Photoelectric Technology Co.,Ltd..

Risks include slower-than-expected downstream capacity expansion, technological change risks, and supply chain price volatility.