AI Demand Fuels Surge in Hong Kong PCB Stocks

On October 5, Hong Kong-listed PCB concept stocks saw significant gains, driven by strong demand in the artificial intelligence sector. Kingboard Laminates led the rally with an 8.5% increase, while Kingboard Holdings and Guanghe Technology each rose by 7%, closing at HKD 126.5. This upward trend reflects broader industry dynamics, as both volume and prices are rising across the PCB supply chain.

Upstream companies are implementing price hikes to meet rising costs and demand. Kingboard Laminates has issued seven price increase notices this year, and Nan Ya Plastics raised product prices by 20% starting in September. These price adjustments are being passed downstream, with companies like Jiangxi Hongruixing Technology increasing ex-factory prices by 10% and China Jushi raising prices for electronic fabrics by 15% to 20% in September.

A research report by Guojin Securities highlights that strong AI demand is fueling simultaneous increases in PCB prices and volumes. Many AI-PCB companies are operating at full capacity, with robust order books and plans for production expansion. The demand for AI-related copper-clad laminates is particularly strong, with overseas manufacturers struggling to keep up, creating shortages and price hikes that benefit leading Chinese producers.