In the past, PCB (Printed Circuit Board) and its assembly technology were merely a basic and almost invisible part of electronic manufacturing. But in the wake of AI, 5G, and electric vehicles, everything is changing.
High-frequency, high-speed materials, advanced packaging processes, and AI-assisted design are no longer distant concepts but realities on the production line. PCB assembly has evolved from simply connecting components to becoming the core component determining the performance of electronic devices.
01 Industry Transformation: From Scale Expansion to Value Leap
In 2025, China's PCB industry stands at a critical turning point. The industry scale is expected to reach ¥433.321 billion, accounting for over 50% of the global market share, but the core of development has shifted from traditional scale expansion to technology-driven value chain enhancement.
Once reliant on production capacity and cost advantages, the PCB industry is now undergoing profound structural changes. Domestic leading companies like Shennan Circuits and Wus Circuit have captured over 30% market share in the AI server PCB field, demonstrating competitiveness in high-end markets.
Market demand is undergoing a structural shift: traditional consumer electronics demand is slowing, while emerging sectors are experiencing explosive growth.
The PCB value per AI server is as high as ¥5,000, three times that of traditional servers; automotive electronics penetration has exceeded 65%, driving the share of automotive PCB demand from 12% in 2020 to 20% in 2025.
02 Technology Frontier: Triple Evolution in Materials, Processes, and Architecture
Material Innovation: Breaking Transmission Bottlenecks
To support high-speed transmissions of 112Gbps and even 224Gbps in AI servers, the PCB material system is undergoing a comprehensive upgrade. New substrate materials with low dielectric constant (Dk) and low dissipation factor (Df), such as PTFE and M9-grade resins, have become key to achieving 224G high-speed transmission.
These materials effectively reduce signal transmission loss, ensuring stability for long-distance, high-speed interconnects.
Thermal management materials are also innovating. AI server power requirements per rack have increased from 10 kW to tens of kW. Metal Core PCBs (MCPCBs), ceramic substrates like aluminum oxide and aluminum nitride are widely used in areas such as AI server power modules.
Process Upgrade: Moving Towards Micron-Level Precision
On the process front, advanced processes like mSAP (Modified Semi-Additive Process) are pushing line width/spacing below 10 microns. Laser drilling, back drilling, and high-layer count stacking processes support high-density interconnects, meeting the extreme interconnect density demands of AI chips.
Pulse plating technology is regaining focus for high aspect ratio via plating needs. It effectively handles the numerous high AR via designs in AI server boards, meeting via copper requirements while reducing additional surface copper buildup, thereby eliminating subsequent copper reduction steps.
Architectural Change: Fusion of Advanced Packaging and PCB
Architecturally, CoWoP (Chip-on-Wafer-on-Panel) packaging connects chips directly to the PCB by eliminating the ABF substrate, placing extremely high demands on board surface flatness, dimensional stability, and manufacturing yield.
Orthogonal backplane solutions require the use of low-loss materials like M9 or PTFE to meet 224G SerDes transmission needs.
Embedded component technology achieves system-level cost reduction and heatsink removal by embedding power chips within the board. This process requires semiconductor-grade cleanrooms and IC processes, illustrating the deep integration of PCB and semiconductor technologies.
03 Application Drivers: Diverse Scenarios Fueling Technological Innovation
AI Computing & Data Centers
AI servers are driving PCB layer counts to 18-22 layers, utilizing Ultra Low Loss grade CCL materials, significantly increasing value. The computing board in NVIDIA's GB200 cabinet is a 22-layer HDI, the switch board is a 26-layer through-hole board, with PCB value per cabinet approximately ¥146,700.
Increasing AI server power density is also driving power architecture evolution. Power supply PCBs need increased copper thickness for high currents, embedded power modules for higher power density, and high thermal conductivity materials for enhanced cooling.
New Demands in Automotive Electronics
New energy vehicles are driving substantial growth in automotive PCB demand. Intelligent driving systems have increased PCB area per vehicle from 0.5㎡ in traditional cars to 3㎡, with PCB value for L4 autonomous vehicles exceeding ¥2,000.
Automotive electronics demand extremely high reliability. Materials and processes compliant with the AEC-Q200 standard have become the baseline, ensuring products withstand harsh temperature ranges from -40°C to +150°C.
Expansion into Emerging Fields
In 5G and satellite communications, global 5G base station deployments exceed 5 million, driving 25% growth in demand for high-frequency, high-speed PCBs. Low Earth orbit satellite constellations create demand for PCBs resistant to extreme environments, opening a new market of approximately ¥5 billion.
In medical AI and portable devices, wearable medical devices are increasing demand for High-Density Interconnect (HDI) and Flexible Printed Circuits (FPC). Materials must not only support high frequency and speed but also balance flexibility and biocompatibility.
04 Manufacturing Revolution: Advancing Intelligence and Sustainability
AI-Powered Design and Manufacturing
AI is widely applied in the PCB design process, including automatic layout, signal simulation, thermal expansion analysis, and real-time manufacturability checks. This not only shortens design cycles but also reduces error rates.
Siemens' recent acquisition of Downstream Technologies aims to strengthen design-to-manufacture integration, addressing the need for rapid development.
In inspection, traditional methods struggle with increasing layer counts and density. The industry is adopting AI-driven Automated Optical Inspection (AOI), X-ray solder joint inspection, and real-time thermal monitoring to enhance quality control.
Breakthroughs in Additive Manufacturing
3D printing technology is rapidly changing PCB prototyping and small-batch production. It not only accelerates prototyping speed but also supports the manufacture of specially shaped structures.
For increasingly complex circuit designs, 3D printing offers new possibilities difficult to achieve with traditional subtractive manufacturing.
Green Manufacturing Becomes Imperative
Stringent environmental regulations, like the EU's CBAM, could increase PCB export costs by 8-10%. This prompts companies to intensify R&D investment in environmental technologies and equipment.
Halogen-free substrates, water-saving processes, and decomposable substrates are being progressively adopted. For example, Germany's Schweizer Electronic uses water circulation systems to reduce environmental impact.
Green compliance is no longer just a cost burden but a core competitive advantage.
05 Global Landscape: Supply Chain Restructuring and Regionalization
The global PCB industry landscape is being reshaped. To circumvent trade barriers and tariffs, Chinese companies are establishing factories in Southeast Asia (e.g., Vietnam, Thailand) and Mexico. Some companies have seen cost reductions of 15% or more after their Vietnam facilities commenced operations.
Southeast Asia's PCB output value is projected to reach 12% of the global total by 2025.
Taiwanese manufacturers like Unimicron, Nan Ya PCB, and Zhen Ding Technology have become major global suppliers of high-end PCBs and ABF substrates. Japanese manufacturers like Panasonic and Hitachi focus on high-performance materials; South Korea's Samsung Electro-Mechanics leads in HDI and SLP technology; China's Shennan Circuits is rapidly expanding capacity.
These players are forming a multipolar competitive landscape in the AI era.
06 Future Outlook: Three Major Trends Shaping the Industry's Future
Looking ahead, the PCB assembly industry will deepen its development along three main lines:
The Irreversible March towards High-End: Technology will continue evolving towards higher density, higher speed, and more advanced packaging. The share of high-end products like HDI and IC substrates will keep rising, expanding further into frontiers like 6G communications and the low-altitude economy.
Greening as a Mandatory Question: "Zero-carbon transition" will become an industry consensus. PV-powered factories, circular recycling technologies (e.g., recycled copper), and easily disassembled, recyclable PCB designs will become mainstream trends.
Intelligent Empowerment of Industry Upgrade: Artificial intelligence and digital technologies will deeply empower the entire design-manufacture-inspection workflow. AI-assisted design (AI-EDA), digital twins, 3D printing, and similar technologies will significantly shorten R&D cycles and enable highly customized production.
The next wave of change is already brewing. In labs, new materials like graphene and carbon nanotubes are being tested; in design software, AI algorithms are learning more complex circuit layouts; on production lines, 3D printers are quietly building structures once thought impossible.
Future PCB assemblies might no longer be just rigid boards but flexible, bendable, even biodegradable intelligent carriers. They will integrate more components, undertake more functions, further shrinking in size while increasing capability.
Enterprises that skillfully combine technological innovation, green sustainability, and global supply chain layout will not just keep pace with this transformation but are poised to lead the next leap forward.
