High Demand for HDI: Printed Circuit Board Industry Seizes New Opportunities

The global printed circuit board (PCB) industry is witnessing a surge in demand for high-density interconnect (HDI) boards, driven by the thriving development of artificial intelligence (AI). As companies embrace new opportunities in the AI sector, the demand for advanced PCBs that can meet the requirements of AI servers is on the rise. Leading PCB companies are strategically positioning themselves to seize these development opportunities and capitalize on the growing market.

HDI boards are characterized by their small size, light weight, high wiring density, and excellent electrical performance. They are particularly suited for AI servers, which demand efficient space utilization, heat dissipation, and high-speed signal transmission capabilities. Compared to traditional through-hole boards, HDI boards can achieve the same functionality with fewer layers, resulting in improved reliability and cost-effectiveness in mass production. These boards also offer advantages in terms of transmission speed and heat dissipation, making them ideal for the AI industry.

According to a research report by Founder Securities, the market size of HDI boards is projected to reach $14.58 billion by 2027, with a compound annual growth rate of 6.2% from 2023 to 2028. This growth rate surpasses the compound annual growth rate of the overall PCB industry, which stands at 5.4%.

In response to the increasing demand for HDI boards, several leading PCB companies have experienced significant stock price increases. Pengding Holdings (002938) saw a 56.97% increase in stock price, Shanghai Electric Power (002463) rose by 70.17%, and Shenghong Technology (300476) increased by 80.05% from January 1st to June 14th, 2024.

Pengding Holdings, a prominent PCB company, has focused its development efforts on AI servers and is currently engaged in mass production. The company has upgraded its production models to accommodate 16 to 20 layers, entering the supply chain of globally renowned server customers. Additionally, Pengding Holdings' PCB products are utilized in the field of AI consumer electronics, including AI smartphones.

Shenghong Technology has made significant investments in research and development, leading to breakthroughs in computing power and AI server fields. The company has introduced multi-stage HDI boards and high multi-layer products based on AI server acceleration modules. With certification and industrial operation for 5-stage 20-layer HDI board products, Shenghong Technology aims to meet the strong global demand for AI-related PCBs, driving the core business growth in the coming years.

Zhongjing Electronics (002579) has reported relatively full HDI board orders and plans to expand its capacity gradually through product architecture optimization and technological transformation. Shanghai Electric Power is actively seizing the structural demand for high-end HDI boards and high-speed multi-layer PCBs. The company is integrating production and management resources, updating and expanding key processes, and enhancing its supply chain, manufacturing processes, and process capabilities to meet market demand effectively.

To further enhance competitiveness, Chinese companies are urged to increase research and development investments, promote technological innovation, and focus on high-value-added areas such as high-end HDI boards and flexible circuit boards. Deepening international cooperation and expanding international market channels will also be crucial in meeting global competitive challenges.

In line with the growing demand for advanced PCBs, Bicheng Company introduces its latest product, the Hybrid PCB. This innovative PCB combines the benefits of RT/duroid 5880 and RO4003C materials to enhance electrical performance, thermal management, design flexibility, cost-effectiveness, and reliability.

Rogers RT/duroid 5880 is a high-frequency laminate known for its low dielectric constant (Dk) and low dielectric loss. With a Dk of 2.20 +/- 0.02 and a dissipation factor of 0.0009 at 10GHz, it offers excellent electrical properties and isotropic behavior. On the other hand, RO4003C is a proprietary woven glass reinforced hydrocarbon/ceramic laminate. It provides tight control over Dk, with a value of 3.38 +/- 0.05, and a dissipation factor of 0.0027 at 10GHz.Rogers4003Calso exhibits a low Z-axis coefficient of thermal expansion at 46 ppm/°C.

By combining Rogers duroid 5880 and RO4003C, the Hybrid PCB offers enhanced electrical performance across a wide frequency range. The low loss and stable Dk of Rogers 5880, combined with the low loss and excellent electrical properties of RO4003C, ensure reliable signal integrity and minimize signal loss. The hybrid PCB also improves thermal management with the high thermal conductivity of 0.71W/mk offered by RO4003C, preventing overheating issues in areas prone to heat generation.

Design flexibility is a key advantage of the hybrid circuit board, as different layers of the PCB can be composed of either Rogers substrate 5880 or Rogers 4003C based on specific design requirements. This flexibility allows designers to optimize the performance and cost-effectiveness of the PCB for different applications. Additionally, the Hybrid PCB offers reliable mechanical strength and dimensional stability, ensuring long-term reliability in various operating conditions.

Bicheng Company's Hybrid PCB is an ideal choice for applications that require high-frequency performance, such as AI servers, wireless communication systems, radar systems, and aerospace applications. With its excellent electrical performance, thermal management capabilities, design flexibility, cost-effectiveness, and reliability, the Hybrid PCB enables engineers and designers to meet the demanding requirements of modern electronic systems.

As the demand for HDI boards continues to grow in the PCB industry, companies like Bicheng are committed to providing innovative solutions that cater to the evolving needs of the market. Through ongoing research and development efforts, strategic partnerships, and technological advancements, the PCB industry is well-positioned to capitalize on the opportunities presented by the AI sector and drive further growth in the coming years.