Will prices rise again in the first half of the year? An overview of PCB industry chain stocks

Power hardware performed strongly on March 10, led by the PCB sector, with Zhongying Technology, Lianrui New Materials, Xunjiexing, Dongshan Precision, Guanghe Technology, and Jinan Guoji hitting the daily limit; Yihou New Materials, Kexiang Co., Jinlu Electronics, and Benchuang Intelligent surged over 10%.

CITIC Securities stated that the continued strength of the PCB sector is primarily driven by “price increases.” Since the end of 2025, downstream demand has been relatively robust, with AI demand squeezing traditional capacity. Meanwhile, raw material prices, such as copper, remain high, and electronic cloth prices continue to rise. High-end T-glass cloth remains in short supply, collectively supporting the accelerated implementation of price increases for copper-clad laminates, BT substrates, and ABF substrates. Since Q4 2025, prices for copper-clad laminates (FR4), BT, and ABF substrates have increased by approximately 15%-20%. Further price hikes of 10%-20% are expected after the first half of 2026, which could significantly boost profit margins for related companies starting in H1 2026.

Recently, two major international giants announced price increases, further confirming the “price increase” logic. First, Japanese semiconductor materials giant Resonac (a key supplier of CCL and copper-clad laminate bonding materials worldwide) announced on March 1st that the prices of copper foil substrates (CCL) and adhesive films would be raised by over 30%. Subsequently, Japanese electronics materials leader Mitsubishi Gas Chemical (a global leader in high-end copper-clad laminates, BT resins, and the largest supplier of packaging substrates) also announced price hikes for electronic materials, covering all series including CCL, Prepreg (resin substrates), and CRS (copper foil resin sheets), with a 30% increase effective from April 1, 2026.

Additionally, PCB companies’ capital expenditures are rebounding, boosting market confidence. Dongwu Securities noted that in the first three quarters of 2025, the capital expenditure of eight major PCB companies reached 16.29 billion yuan, a 69% year-over-year increase, roughly comparable to the peak in 2021. In 2021, these eight companies’ total capital expenditure was 17.1 billion yuan. From 2022 to 2024, the PCB industry experienced a three-year cooling period.

Industry insiders suggest that this cycle differs from previous ones, which were driven by gradual penetration of end products increasing equipment demand. Instead, this cycle benefits from the explosive growth in AI computing power creating new demand, making the future of PCB promising. Guosheng Securities stated that the global PCB market size is expected to reach $75 billion in 2024 and $96.8 billion by 2029, with a compound annual growth rate of 5.2% from 2024 to 2029.

In terms of individual stocks, leading PCB manufacturers (Shenghong Technology, Shennan Circuit, Huidian Co.), drilling equipment (Han’s Laser, Han’s CNC), drilling needles (Tungsten High-tech, Dingtai Technology, Xinrui Co.), solder paste printing equipment (Kaige Precision), and LDI equipment (Cinch Micro) are among the segments attracting market attention.

(Source: Oriental Wealth Research Center)