China's PCB Suppliers Ride AI Boom with IPOs

Printed circuit boards (PCBs) – unsung core components in all electronic devices – are emerging as the latest source of excitement in China’s chip supply chain, as domestic companies capitalise on surging global demand for artificial intelligence infrastructure to pursue share listings.

Victory Giant Technology, a PCB supplier to US chip champion Nvidia, kicked off bookbuilding in Hong Kong on Monday for an initial public offering (IPO) that aims to raise up to HK$17.49 billion (US$2.2 billion).

The plan testifies that the blistering expansion of AI infrastructure has created a gold rush for high-end circuit boards, with analysts projecting growth beyond 2026.

Often thought of as unsophisticated components – if they are thought of at all – PCBs have taken on more importance because they play an essential role in the complex interconnect that is crucial for advanced AI servers and data centre switches.

Jiangxi Redboard Technology, another domestic PCB supplier, listed in Shanghai last week, raising 1.8 billion yuan (US$263.4 million) for capacity expansion. Another mainland supplier to Nvidia, Zhongji Innolight, was reported in early April to have submitted a confidential application to list in Hong Kong, aiming to raise at least US$3 billion.

“PCBs are currently all the rage across the world due to the rapid expansion of AI data centres,” said Kenny Ng Lai-yin, a strategist at Everbright Securities International. “Given the shortage of supply, the momentum of the sector is expected to maintain for one to two years.”