China's printed circuit board (PCB) manufacturers are embarking on a factory-building spree of historic proportions, driven by insatiable demand from the global artificial intelligence boom. In the first half of 2026, more than 20 Chinese PCB companies disclosed aggressive capacity expansion plans that are expected to push the sector's capital expenditure to a record high.
Leading the charge is Victory Giant Technology, based in Huizhou, Guangdong province, which recorded a staggering 3.6 billion yuan (US$530 million) in first-quarter capital expenditure — nearly five times the 730.1 million yuan spent in the same period last year. Rival WUS Printed Circuit, based in Kunshan, Jiangsu province, more than doubled its Q1 spending to 1.5 billion yuan.
Other major players including Shennan Circuits and Suzhou Dongshan Precision Manufacturing have also committed hundreds of millions of dollars per project, marking one of the most intense growth phases the PCB sector has seen in recent years.
The surge is being driven by a strategic pivot toward the high-end circuit boards required for AI servers. As Nvidia and other AI chip makers race to meet demand, the sophisticated PCBs that sit beneath these processors — with more layers, tighter tolerances, and advanced materials — have become a critical bottleneck in the global AI supply chain.
The investment wave comes amid broader concerns about supply chain security. CNBC reported in June that U.S. officials are increasingly worried about reliance on Chinese-made PCBs for AI infrastructure, though domestic alternatives remain limited and significantly more expensive.
The boom also reflects a wider trend of AI-driven demand reshaping the global electronics manufacturing landscape, as every component in the AI value chain — from memory chips to cooling systems to humble circuit boards — faces unprecedented pressure to scale up.
