Plans to invest 6.8 billion yuan to expand high-end capacity! Leading trillion-yuan company Shentian Shares officially announces PCB expansion, betting on high-speed networks and high-performance server markets.

On the evening of April 1, PCB (printed circuit board) leader Huidian Co., Ltd. (Huidian) (SZ002463, share price 79.29 yuan, market cap 152.6 billion yuan) announced that at its 17th meeting of the eighth session of the board of directors, all members voted in favor of passing the resolution titled “Resolution on Approving the Signing of an Investment Agreement and the Construction of a Printed Circuit Board Production Project and Its Supporting Facilities,” which does not need to be submitted to the company’s shareholders’ meeting for approval.

The announcement shows that Huidian Co., Ltd. plans to invest in and construct a printed circuit board production project and its supporting facilities, with a total planned investment of about 6.8 billion yuan. The funding source will be its own funds or self-raised funds.

According to the announcement, the company will authorize management to sign the relevant investment agreement with the Management Committee of the Kunshan High-tech Industrial Development Zone (hereinafter referred to as the “Kunshan High-tech Zone Management Committee”) and handle implementation matters. Huidian Co., Ltd. said that this external investment does not constitute a related-party transaction and does not constitute a major asset reorganization.

The project will not have a major impact on the company’s 2026 performance

The announcement shows that the project cooperation party this time is the Kunshan High-tech Zone Management Committee. It is not a party subject to enforcement for breach of trust and has no related-party relationship with the company.

According to the investment agreement to be signed by Huidian Co., Ltd. and the Kunshan High-tech Zone Management Committee, in order to further speed up project construction, the Kunshan High-tech Zone Management Committee will set up a dedicated working team to be responsible for overall coordination and alignment for the project, and to assist Huidian Co., Ltd. in getting started early, completed early, put into operation early, and achieve early results, so as to continuously realize high-quality development. At the same time, the Kunshan High-tech Zone Management Committee will provide support to Huidian Co., Ltd., including support such as infrastructure supporting arrangements and coordination of emission indicators.

Regarding the purpose and impact of this investment, Huidian Co., Ltd. said that after the project is implemented, it can further expand the company’s product production capacity, precisely anchor structural growth opportunities in the industry, and effectively match and meet customers’ medium- and long-term incremental demand for high-performance, high-reliability printed circuit boards in areas such as high-speed computing servers and next-generation high-speed network switches, and therefore has good market development prospects.

The company also said that the implementation of this project will further expand the company’s business scale, optimize its product structure, strengthen its core competitiveness, and improve the company’s economic benefits. It is consistent with the long-term interests of the company and all shareholders, and there are no circumstances that would harm the interests of the company or all shareholders. However, this project will not have a major impact on the company’s operating performance for 2026.

Meanwhile, according to the announcement, the project is based on Huidian Co., Ltd.’s long-term strategic planning and needs for business development, and has a certain construction cycle. However, the announcement also points out that the market itself has uncertain factors. If in the future market demand growth is lower than expected, or business market promotion progress, product price fluctuations, and other factors deviate significantly from the company’s expectations, then the implementation of the project may also face risks of changes, delays, suspension, or termination.

“After this project is put into production, it may also face external risks such as macroeconomic fluctuations, technology changes, intensifying industry competition, and changes in the market environment. At the same time, if the release of new capacity cannot keep pace with customer demand, it may lead to the risk of insufficient capacity utilization. There may also be a risk that the project’s expected benefits will not be achieved after all of it is implemented.” Huidian Co., Ltd. said in the announcement.

Pengl Ding Holding announced a new PCB project worth over 10 billion yuan just last month

A reporter from the Economic Daily News noted that in recent years, with the launch of new-generation hardware architectures by companies such as NVIDIA, the complexity of computing power equipment has risen sharply. Compared with traditional servers’ PCB layers numbering in the teens, AI (artificial intelligence) servers typically require dozens of layers of high-frequency, high-speed boards and high-density interconnect boards; the manufacturing process is more complex, and the PCB value per unit of equipment has increased on a multiples level.

At present, the PCB industry shows a clear characteristic of “high growth at the top and pressure on the tail.” Low-end production capacity is deeply trapped in a price-war red ocean, while leading companies that control backplane technology of 20 layers and above and advanced HDI (high-density interconnect printed circuit board) technology have sufficient orders and cash flow.

From 2025 to early 2026, the PCB industry kicked off a new round of expansion of high-end production capacity. Major leading companies have been investing heavily to build up high-end smart manufacturing. Huidian Co., Ltd.’s investment of 6.8 billion yuan is a snapshot of this industry’s structural upgrade of production capacity and the push to capture market share in the high-end segment.

In addition to Huidian Co., Ltd., in mid-March, another PCB giant, Pengl Ding Holding (Pengl Ding) (SZ002938, share price 53.61 yuan, market cap 124.3 billion yuan), also announced a production expansion plan of 11 billion yuan.

According to the announcement at that time, the board of directors of Pengl Ding Holding approved a project investment agreement for its wholly owned subsidiary, Qingding Precision Electronics (Huaian) Co., Ltd. (hereinafter referred to as “Qingding Precision”), to sign with the Management Committee of the Huaian Economic and Technological Development Zone. Qingding Precision will invest 11 billion yuan on the state-owned construction land in the Huaian City 2025GGK33 plot to be used for the construction of a high-end PCB project production base.

Economic Daily News