China's PCB Industry: Supplying 60% of the World and Its Deep Ties to AI Servers

China’s prominence in the global printed circuit board (PCB) market is rapidly increasing. By 2025, the global PCB production value is expected to reach $85 billion, with China accounting for approximately 60% of that. Particularly in the high-end PCB sector for AI servers, soaring demand has become a tailwind for Chinese companies.

The underlying driver is the advancement of AI semiconductors, which has necessitated increasingly sophisticated boards. As NVIDIA’s products evolve from the H100 to Rubin Ultra, the PCB value per unit has skyrocketed from $2,500 to $100,000. At the heart of this market are China’s PCB manufacturers.

What Is a PCB?

Often referred to as the “mother” of electronic devices, a PCB is an essential component in virtually all electronic products. If chips are likened to the brain, PCBs are the blood vessels and nerves. Chips alone cannot function without being mounted on a PCB.

The first PCB was created in 1936 by Jewish inventor Paul Eisler in his apartment. Its value became widely recognized during World War II when the U.S. military adopted it for wireless equipment, leading to widespread adoption from military to civilian applications.

Today, PCBs are integral to smartphones, computers, routers, and mobile batteries—nearly all electronic products.

Surging Demand for AI Server PCBs

The most notable change in NVIDIA’s AI server PCBs is the increased complexity of layers and materials. While multi-layer boards sufficed for the H100, the GB300 requires 24-layer high-density interconnect (HDI) boards. VR200 uses 26-layer HDI with M8 materials and a 78-layer backplane, whereas Rubin Ultra demands a 104-layer backplane.

This rising technological complexity directly correlates to higher PCB costs. While PCBs for the H100 generation were valued at around $2,500 per unit, the total PCB value for Rubin Ultra racks has climbed to $100,000.

Shenhong Technology, a leading Chinese PCB manufacturer, supplies approximately 70% of NVIDIA’s AI server PCBs. In 2025, the company achieved revenue of 19.29 billion yuan (a year-on-year increase of 79.77%) and net profit of 4.312 billion yuan (up 273.52%). Its AI server PCB revenue grew from 710 million yuan to 8.34 billion yuan, expanding elevenfold in just one year.

Strength of the Ecosystem

China’s PCB industry’s strength cannot be attributed solely to “low costs.” While production costs in Vietnam and India are lower, their combined PCB production capacity accounts for less than 8% of the global market.

The first key factor is the density of industrial clusters. In PCB clusters located in the Pearl River Delta and Yangtze River Delta, all related components—copper-clad laminates, copper foil, glass cloth, drill bits, chemical solutions, molds, and testing equipment—are accessible within a 300-kilometer radius.

The second factor is the expertise of technicians. Parameters like drilling speeds for 28-layer boards, etching solution concentration, and plating current density are refined through trial-and-error rather than manuals. China is believed to have tens of thousands of technicians with over 15 years of experience.

The third factor is long-standing trust with customers. PCBs are highly customized products, requiring 3-6 months from design to mass production. Chinese PCB companies have built 20-year-long collaborative relationships with global electronics brands.

Industry-Wide Expansion

Not only Shenhong Technology, but China’s entire PCB industry is experiencing growth. Shennan Circuit’s net profit rose by 74.47% in 2025, and its orders for AI servers and 800G optical modules are booked through Q4 2026.

Ponding Holdings reported sales of 39.147 billion yuan in 2025, maintaining its position as the global leader for nine consecutive years, while doubling its AI server business. The company also invested 8 billion yuan to build high-end production lines in Huaian.

In 2025, 20 Chinese PCB companies expanded their production capacities, with total investments exceeding 80 billion yuan.

Strengthening Ties with NVIDIA

On May 17, 2025, NVIDIA CEO Jensen Huang hosted a banquet in Taipei for key partners in the AI supply chain. Among the attendees was Chen Tao, the founder of Shenhong Technology, the only entrepreneur from mainland China at the event.

In 2017, when the global PCB market was declining, Chen made a bold decision to invest heavily in high-density interconnect PCBs. At the time, NVIDIA had just launched its first AI server, the DGX-1, and the AI server market was in its infancy.

“AI computing power is becoming increasingly centralized, and concentrated computing requires better boards,” Chen reasoned. His foresight was later proven correct, as Shenhong’s market capitalization soared to 395.7 billion yuan at its peak.

Editorial Opinion

This report vividly illustrates the seismic shifts in the AI supply chain. In the short term, the supply-demand imbalance for AI server PCBs is expected to persist. Shennan Circuit’s orders being booked through Q4 2026 indicate supply constraints will likely continue for at least another year.

In the long term, China’s robust PCB ecosystem will delay the migration of production capacity to Southeast Asia. While factories can relocate, the cluster density and the accumulated expertise of thousands of technicians cannot be easily replicated. However, geopolitical risks and moves by customer companies to diversify supply chains may introduce medium- to long-term uncertainties.

As an editorial team, we find it noteworthy that the evolution of AI semiconductors is driving up the technical complexity of PCBs, favoring Chinese firms. The higher the technical barriers—such as the 104-layer backplane required for NVIDIA’s next-generation chips—the greater the advantage for Chinese companies with years of experience and accumulated expertise. For Japanese and Korean companies to regain ground in this sector, strategic planning and execution will be key.

References

• “全球60%！这拨中国企业，又把美国给干慌了”, by 华商韬略 — 钛媒体, 2026-07-14T09:22:08.000Z (ARR)
• Source URL: https://www.tmtpost.com/8064105.html