China Great Wall: Computing power server iteration upgrade HDI will be the fastest-growing PCB in the next 5 years.

China Great Wall released a research report stating that AI servers have increasingly strict requirements for high-density interconnection, heat dissipation efficiency, and space optimization. Traditional plated through hole boards are unable to meet these requirements, while high-order HDI, with its small vias, high line density, and excellent signal integrity, has become the preferred solution for key components such as AI accelerator modules. With the upgrade of AI servers, GPU motherboards will also gradually upgrade to HDI, making HDI the fastest-growing PCB category related to AI servers in the next five years. Prismark predicts that the compound annual growth rate of AI server-related HDI from 2023 to 2028 will reach 16.3%, making it the fastest-growing category in the AI server-related PCB market. Key points from China Great Wall are as follows: - The iterative upgrade of computational servers has become the core driving force for the growth of demand for high-layer and high-order HDI boards. - The PCB of computational servers, as the physical carrier and signal hub of computational infrastructure, has evolved from basic circuit connectivity to a core technical platform supporting high-performance computing. On one hand, server platform upgrades have led core computational components such as CPUs and GPUs to evolve towards high performance and high integration, requiring more layers of PCB to achieve circuit layout and high-speed signal transmission. On the other hand, the requirements for high-density interconnection, heat dissipation efficiency, and space optimization in AI servers are becoming increasingly stringent, making traditional plated through hole boards inadequate. High-order HDI, with its small vias, high line density, and excellent signal integrity, has become the preferred solution for key components such as AI accelerator modules. - The growth in demand for AI servers and the large-scale expansion of data centers and cloud infrastructure bring about stable growth in PCB demand. - According to QY Research, in terms of product segmentation, multi-layer boards are the most dominant, accounting for approximately 58.4% of the market share, but the proportion of HDI is steadily increasing. With the upgrade of AI servers, GPU motherboards will also gradually upgrade to HDI, and small AI accelerator modules typically use 4-5 layers of HDI for high-density interconnection. Therefore, HDI will be the fastest growing PCB related to AI servers in the next five years, especially for high-order HDI products with 4 or more layers. - Prismark predicts that the compound annual growth rate of AI server-related HDI from 2023 to 2028 will reach 16.3%, making it the fastest-growing category in the AI server-related PCB market. In addition, DIGITIMES Asia predicts that the global market size of advanced packaging for AI chips in data centers will jump from $56 billion in 2024 to $531 billion in 2030, with a compound annual growth rate of over 40%. Packaging substrates, as an important part of chip packaging, will also continue to benefit. - Continuous breakthroughs in new materials and new technologies. 1) Copper clad laminate: As one of the core materials for PCB manufacturing, it uses the M series numbering for classification. The M series numbering is directly related to the technological generation of materials. The higher the grade, the better the material performance, and the smaller the loss associated with higher-level materials. The explosive growth in AI speeds drives the application of the M2-M8 series of high-speed copper foils. Currently, materials of grade M7 and above are widely used in AI servers, 5G base stations, and other scenarios. 2) Ceramic substrates: Ceramic substrates, with their excellent thermal conductivity, insulation, and thermal stability, are becoming essential core materials for high-end electronic devices. From the perspective of the ceramic substrate industry chain, as it extends from powder to power modules, the industry concentration increases. As the industry extends downwards, Chinese companies have mature technology and scale, playing an important role globally. 3) Diamond: With semiconductor processes breaking through to below 2 nanometers, the increase in internal power density of chips has led to local temperatures exceeding 150C, with the heat dissipation efficiency of traditional copper and aluminum materials approaching physical limits. Diamond, with a thermal conductivity of 2000W/mK, has become the ultimate material for solving heat dissipation problems in high-temperature and high-pressure scenarios. 4) Vertical power supply: By penetrating PCB layers to vertically deliver power upwards to processors, the distance for power transmission from VRM to SoC is effectively shortened. A shorter and more direct power supply path naturally reduces resistance, and large-scale implementation is ongoing. Recommendations for focusing on targets: - PCB/HDI: Victory Giant Technology (300476.SZ), Wus Printed Circuit (002463.SZ), Aoshikang Technology (002913.SZ), Olympic Circuit Technology (603920.SH), Suntak Technology (002815.SZ), DELTON (001389.SZ), Shenzhen Kinwong Electronic (603228.SH), Sihui Fuji Electronics Technology (300852.SZ). - Packaging substrates: Shenzhen Fastprint Circuit Tech (002436.SZ), Shennan Circuits (002916.SZ). - Ceramic substrates: Guangdong Kingshine Electronic Technology (300903.SZ). - Vertical power supply: SHENZHEN JOVE ENTERPRISE LIMITED (300814.SZ). - Copper clad laminate/ABF film: Zhejiang Wazam New Materials (603186.SH). Risk warnings: - Risks of raw material supply and price fluctuations. - Macro-economic fluctuations. - Risks of product research and development and technological innovation. - Risks of loss of core technical personnel.