Since the beginning of this year, PCB-related stocks have frequently hit daily price limits. While AI computing demand continues to drive up market demand for PCBs, it has also triggered severe supply-demand imbalances across the industry chain. As Q3 2026 financial reports are gradually disclosed, a stark contrast has emerged between PCB manufacturers and upstream material suppliers: upstream copper-clad laminate (CCL) companies such as Zhejiang WAZAM New Materials, Nanya Technology, and Kingboard Laminates reported quarter-on-quarter net profit attributable to parent company shareholders growth exceeding 1000%. Notably, upstream copper foil supplier Jiayuan Technology saw its quarterly net profit attributable to parent company shareholders surge by 4264.17%. Meanwhile, some downstream PCB manufacturers remain in a state of "revenue growth without profit growth," with thin absolute profit margins.
Upstream Segment: Aggressive Profit Capture
In this round of profit distribution within the PCB industry chain, upstream base material manufacturers are undoubtedly the biggest winners.
CCL leader Shengyi Technology reported Q3 revenue of CNY 14.182 billion, a year-on-year increase of 78.76%; net profit attributable to parent company shareholders reached CNY 3.440 billion, up 238.40% YoY. Second-tier CCL companies showed even more dramatic elasticity: Zhejiang WAZAM New Materials' net profit attributable to parent company shareholders was CNY 627 million, surging 3044.60% YoY; Nanya Technology's net profit attributable to parent company shareholders was CNY 990 million, up 1295.94% YoY; and Kingboard Laminates' net profit attributable to parent company shareholders was CNY 1.158 billion, up 1030.57% YoY. In its Q3 2026 report, the company attributed these gains primarily to "rising CCL prices and increased sales volume."
Data source: Corporate Q3 2026 Financial Reports, compiled by China Electronics News reporters
In Q3 2026, beneficiaries among PCB upstream base materials were not limited to CCLs. Tracing the price hike chain, segments including copper foil, fiberglass cloth, and epoxy resin also exhibited "explosive" growth: Electronic copper foil manufacturer Jiayuan Technology reported net profit attributable to parent company shareholders of CNY 180 million, up 4264.17% YoY; Epoxy resin manufacturer Hongchang Electronics reported net profit attributable to parent company shareholders of CNY 216 million, up 2544.78% YoY; and Electronic fiberglass cloth manufacturer Honghe Technology reported net profit attributable to parent company shareholders of CNY 364 million, up 607.73% YoY. Equipment and consumables segments such as drilling, exposure, and inspection also benefited simultaneously: Drilling equipment manufacturer Han's Laser CNC reported net profit attributable to parent company shareholders up 157.08% YoY; Drill bit consumable supplier Dingtai High-Tech up 284.41%; and Micro/nano direct-write lithography supplier Xinqi Micro-Equipment up 216.66%.
PCB Manufacturers: Squeezed Margins
In sharp contrast to the upstream base material segment, financial statements from PCB finished product manufacturing are much less impressive. Even with overall revenue rising, net profit growth rates lag far behind those of upstream players. According to statistics compiled by China Electronics News reporters, the top 10 enterprises by revenue scale in PCB upstream base materials and core process equipment/consumables achieved an average net profit attributable to parent company shareholders growth rate of approximately 1196% in Q3 2026. For the top 10 PCB finished product manufacturers by revenue scale, this figure was only about 167%. Among these 10 board factories, two recorded net profit attributable to parent company shareholders below CNY 500 million in the current quarter.
Data source: Corporate Q3 2026 Financial Reports, compiled by China Electronics News reporters
Specifically, the Q3 2026 financial performance of PCB manufacturers targeting different application scenarios varied significantly. High-speed multi-layer board factories directly supplying AI servers performed relatively well: WUS Printed Circuit reported net profit attributable to parent company shareholders of CNY 2.699 billion, up 160.77% YoY; Shennan Circuits reported net profit attributable to parent company shareholders of CNY 1.878 billion, up 94.42% YoY. However, PCB manufacturers primarily serving traditional markets such as consumer electronics, automotive, and general rigid boards exhibited clear characteristics of "revenue growth without profit growth": Pengding Holdings' revenue rose 14.21%, but net profit attributable to parent company shareholders slightly decreased by 0.87%; Victory Giant Technology's revenue rose 34.30%, but net profit attributable to parent company shareholders plummeted by 52.17%; and Shiwei Circuit's net profit attributable to parent company shareholders decreased by 2.04% YoY. In Q3 2026, profit margins for PCB manufacturers were generally under pressure: Tight raw material supply and price hikes drove production costs steadily higher. However, there is a time lag between cost increases and product price adjustments. During interviews conducted by reporters, multiple PCB companies stated that they would only issue price hike notices to customers when costs became "unbearable." In the interim, a significant portion of the pressure from rising costs was absorbed internally by PCB enterprises.
In September 2026, Chongda Technology, a specialist in high-multilayer rigid boards and IC substrates, candidly explained in investor Q&A sessions that the reasons for "revenue growth without profit growth" in the first half included foreign exchange losses and rapid raw material price hikes, noting that "average procurement prices for CCL, copper, gold salts, etc., rose by 10% to 70% year-on-year." Shennan Circuits, another high-speed multi-layer board manufacturer, also pointed out during investor relations activities that volatile commodity prices for copper and tin in the first half, coupled with tight supply of key materials like CCL, electronic cloth, and copper foil, led to substantial cost increases.
PCB Price Adjustments Continue
For PCB manufacturers, adjusting shipment prices is the most direct way to alleviate the challenge of "compressed profits." Since July, PCB manufacturers have continued to push through price adjustments. Customers in communications and automotive sectors have gradually accepted price hikes of 20% to 30%, with some scarce orders seeing increases exceeding 40%. The transition from old to new contracts coincided with profit realization in Q3. Entering October, upstream material price hikes intensified further. On October13, global CCL leader Kingboard Laminates issued its eighth price adjustment notice of the year, uniformly raising prices by 15% for thin cloth laminates (2116 and below) and prepregs. Concurrently, the electronic cloth market saw another round of increases, with model 7628 rising by CNY 1.5/meter, and thin cloths (models 2116 and 1080) increasing by CNY 2.5/meter.
Chongda Technology, focused on high-multilayer rigid boards and IC substrates, outlined at its H1 2026 earnings briefing (with the Q3 earnings briefing scheduled for November 6) that it would improve gross margins by focusing on four main strategies: "optimizing structure, strengthening pricing power, reducing costs, and promoting synergy." Specifically, on the revenue side, the company aims to "optimize pricing and customer mix," while strictly eliminating loss-making and low-margin orders. Capacity resources will be tilted toward high-value-added fields such as IC substrates, high-end servers, and high-speed communications, increasing the proportion of premium customers and high-value orders. In investor Q&As, the company revealed that AI server-related PCB products account for no more than 10% of total business revenue. Currently, capacity for Prowin substrate business is tight. The factory building for Chongda's third plant in Zhuhai has been completed, and the commissioning pace will be determined prudently after comprehensive assessment of market conditions. Financial data shows that Chongda Technology's net profit attributable to parent company shareholders in Q2 was CNY 120 million, a quarter-on-quarter increase of 269.51% compared to Q1, indicating a clear trend of improvement. In Q3, net profit attributable to parent company shareholders reached CNY 498 million, a quarter-on-quarter increase of 315.70% compared to Q2, and a year-on-year increase of 441.01%, demonstrating accelerated profit release.
Data source: Corporate Financial Reports, compiled by China Electronics News reporters
The results indicate that the pace of profit recovery for PCB manufacturers is uneven, heavily influenced by their bargaining power. Board factories serving high-end tracks like AI computing possess stronger bargaining power, whereas those in traditional fields like consumer electronics and automotive still face lengthy customer certification cycles. Long-term concerns also exist: Leading manufacturers such as WUS Printed Circuit, Victory Giant Technology, and Pengding Holdings have announced high-end capacity expansions exceeding CNY 10 billion each. Once the growth rate of AI computing demand slows, the concentrated release of capacity could trigger a new round of price competition. Currently, the PCB industry is accelerating its concentration towards high-end segments. In the near term, although profit recovery for board factories has begun, the ultimate outcome depends on who can secure a foothold in the high-end computing track.
How to Resolve Supply-Demand Imbalance?
The "uneven temperature" in Q3 financial reports between upstream and downstream PCB sectors stems from supply-demand imbalances in upstream segments caused by the rapid growth of AI computing demand. PCB usage per AI server unit has increased significantly, with stringent requirements for board grades. There is a need for high-layer-count, high-speed multi-layer PCBs, accompanied by low-dielectric-loss CCLs and ultra-thin electronic cloths (such as models 2116 and 1080). These high-end electronic cloths and high-speed CCLs originally had narrow application scenarios and small market demand, resulting in limited long-term industry capacity allocation. Once AI server demand exploded, existing capacity quickly tightened, leading to sustained price hikes for upstream materials such as CCL, electronic cloth, and copper foil.
Currently, all segments of the industry chain are accelerating capacity expansion:
First, regarding upstream materials, in the CCL sector, companies like Nanya Technology, Zhejiang WAZAM New Materials, and Kingboard Laminates are actively deploying new capacity for advanced high-frequency high-speed CCLs to capture AI computing and automotive electronics markets. Industry leader Shengyi Technology is investing approximately CNY 5.2 billion to build its second factory in Songshan Lake, planning annual production of 48 million square meters of high-performance CCL, with the first phase expected to commence operations in 2028. In electronic fiberglass cloth, China Jushi has announced two major investments totaling approximately CNY 6.8 billion to expand projects in Huai'an (electronic yarn and cloth) and Tongxiang (electronic cloth). Honghe Technology is also boosting its high-end thin cloth capacity.
On the PCB finished product side, leading companies are focusing investment and expansion around high-end product lines. Capacity expansion by top PCB manufacturers has fully shifted to high-end tracks, with significant increases in new investments mainly concentrated in high-multilayer boards and HDI related to AI computing. Pengding Holdings announced a CNY 11 billion investment plan focusing on high-end PCB projects at its Huai'an base; Victory Giant Technology raised its upper limit for the 2026 annual investment plan significantly to CNY 20 billion.
Although relevant companies are frequently announcing investment and expansion actions, realizing capacity takes time.
Yang Guoming, Acting Chairman of China Jushi, the global leader in electronic fiberglass cloth, explicitly stated in response to investor questions on October 23: "Currently, electronic cloth supply remains tight, and our electronic cloth inventory levels are maintained at lows. It is difficult for the incremental supply of electronic cloth in 2027 to match downstream demand growth. Expansion is constrained by multiple factors including funding, furnace construction cycles, and bottlenecks in the delivery of high-end looms. A tight supply-demand balance in the industry is expected to persist." When will PCB manufacturers escape the dilemma of "earning revenue but not profit"? Observations from recent investor communication records of multiple companies suggest that the inflection point for profit recovery quietly appeared in Q3. However, since upstream capacity for electronic cloth and CCL typically requires 12 to 18 months from construction start to operation, and the ramp-up of high-end capacity for board factories along with customer certification cycles take even longer, this tight supply-demand balance is expected to last at least until the first half of 2027. Until then, the profit dividend from upstream materials will continue, while profit recovery for board factories will depend on who can first secure orders and establish a foothold in the high-end computing track.
Author | Ji Xiaoting, Xie Qinfeng (Intern)
Editor | Qi Xu
Art Editor | Maria Li, Supervising Producer | Lian Xiaodong