Rapid Development in Data Centers and AI Drives PCB Industry’s 2024 Performance Forecasts

In 2024, the rapid advancement of data centers, artificial intelligence, and other emerging sectors created new market opportunities for the printed circuit board (PCB) industry. A number of listed PCB companies – including Wus Printed Circuit, Shengyi Electronics, Xiehe Electronic, Founder Technology, and Guanghe Technology – are expected to post significant year‑on‑year net profit growth for 2024.

On the evening of January 23, Wus Printed Circuit announced its preliminary 2024 results, estimating total operating revenue of RMB 13.342 billion, a year‑on‑year increase of 49.26%; net profit of RMB 2.587 billion, up 71.05%; and basic earnings per share of RMB 1.35, up 70.14%.

The company attributed the strong performance to structural demand for PCBs driven by high‑performance computing servers and AI applications. Leveraging its well‑balanced product portfolio and decades of experience in mid‑to‑high‑end and mass‑production technologies, Wus PCB’s PCB business generated approximately RMB 12.839 billion in operating revenue in 2024, a year‑on‑year rise of about 49.78%. Meanwhile, as the product mix further improved, the gross margin of its PCB business climbed to approximately 35.85%, an increase of 3.39 percentage points over the previous year.

On the same day, Shengyi Electronics also released its preliminary earnings forecast. Based on initial calculations by its finance department, the company expects to achieve a net profit of RMB 299.5 million to 358.1 million for 2024, turning around from a loss in the prior year, with core net profit (excluding non‑recurring items) estimated at RMB 294 million to 353 million.

Shengyi Electronics stated that during the reporting period, it continuously optimised its product structure and actively expanded its regional business layout. With growing market demand for high‑layer‑count, high‑precision, high‑density, and high‑reliability multilayer PCBs, the company’s operating revenue increased substantially compared with the same period last year, enabling it to return to net profitability.

Earlier, several other listed PCB companies – Xiehe Electronic, Founder Technology, and Guanghe Technology – all forecast robust net profit growth for 2024. Xiehe Electronic expects net profit to rise by 76.84% to 103.64%, Founder Technology projects a 62.87% to 103.59% increase, and Guanghe Technology anticipates a 51.92% to 66.39% gain.

Across these companies, the rapid development of AI stands out as a key growth driver. Guanghe Technology attributed its projected revenue and profit increases primarily to the ongoing product structure optimisation brought by generational upgrades in general‑purpose servers, as well as the accelerating evolution and deepening application of AI.

Founder Technology also noted that in 2024, the fast‑growing data centre and AI sectors brought new market opportunities for the PCB industry. The company advanced its high‑end capacity investments and construction as planned. The second phase of its high‑end HDI project at the Zhuhai Founder PCB Intelligent Industrial Park was successfully completed and put into operation, significantly boosting high‑end product capacity. At the same time, Founder Technology targeted leading customers in AI servers, optical modules, switches, and other market segments, continuously refining its product order mix.

Recently, Shennan Circuits addressed the impact of AI development on the PCB industry during an institutional investor visit. The company stated that with the accelerating evolution and deepening application of AI technologies, the new‑generation information technology sector has an increasingly urgent need for high computing power and high‑speed networks. This drives industry demand for PCB products that are larger in size, higher in layer count, high‑frequency/high‑speed, high‑level HDI, and high‑heat‑dissipation. Shennan Circuits’ PCB business, which covers high‑speed communication networks, data centre switches, AI accelerator cards, memory modules, and other areas, has all been influenced by these trends.

In the first three quarters of 2024, Shennan Circuits’ revenue grew 37.92% year‑on‑year to RMB 13.05 billion, while net profit rose 63.86% to RMB 1.488 billion.

According to Prismark data, from 2023 to 2028, the server and storage equipment segment is expected to be one of the fastest‑growing PCB application areas, with a compound annual growth rate of 11.6%. Moreover, as AI server performance improves, PCB requirements become more demanding, which is expected to significantly boost the adoption of HDI products.

In a recent institutional survey, Guanghe Technology revealed that HDI, which employs high‑density interconnect and micro‑via/stacked‑via technology, is being increasingly used in next‑generation AI servers. The company is actively planning capacity for high‑end HDI, upgrading its process capabilities and expanding production to meet downstream customer needs. At present, its HDI capacity remains relatively small, primarily catering to data‑centre products from key clients, but ongoing technical upgrades are set to increase capacity in this area.