On September 12, Hongchang Electronic Materials Co., Ltd. (referred to as "Hongchang Electronics") announced a private placement plan, aiming to raise up to 1.8 billion yuan to invest in high-end copper clad laminate (CCL), prepreg, and advanced packaging film material (GBF) projects, boosting the core substrate capacity for printed circuit boards (PCBs) used in AI servers and data centers.
According to the proposed plan, the raised funds will be allocated to three major projects and working capital replenishment. A total of 1.055 billion yuan will be directed to its wholly-owned subsidiary, Zhuhai Hongren Electronic Materials Technology Co., Ltd., for a project producing 13.2 million sheets of high-end CCL and 31.2 million meters of prepreg annually. Another 95 million yuan will fund a green and intelligent upgrade project for a 9.6 million-meter high-end prepreg line at its subsidiary Wuxi Hongren Electronic Materials Technology Co., Ltd.. An additional 320 million yuan is earmarked for the advanced packaging film materials project, with the remaining funds used to supplement working capital.
A representative from Hongchang Electronics' securities department stated, "The company has been deeply engaged in the electronic-grade resin and copper clad laminate field for years, forming a complete industry chain of 'electronic-grade resin – prepreg – copper clad laminate.' With the explosive growth driven by the rapid deployment of downstream AI computing infrastructure, the company must accelerate its layout of high-end product capacity to meet the increasing market demand, enhance its industry position, and cultivate new profit growth points."
This move by Hongchang Electronics is not an isolated case. Wind data indicates that since the second half of this year, at least three other domestic listed companies in the CCL industry chain have announced capacity expansion or new project plans, collectively betting on the high-end computing materials sector. This reflects the structural upgrade and accelerating development trend within the CCL industry amid the AI computing wave.
In early August, Kingboard Laminates Holdings Ltd. ("Kingboard Laminates") broke ground on its Kingboard (Jiangxi) New Materials Industrial Park project in Shangli County, Pingxiang City, Jiangxi Province. The project has a total investment of 3 billion yuan and is planned in two phases, with the first phase investing approximately 1 billion yuan. Kingboard Laminates believes that with the vigorous development of AI servers, supercomputing clusters, advanced intelligent driving, and new energy vehicle electronics, the requirements for high-frequency, high-speed, high-heat-dissipation, and high-reliability CCL, as well as upstream materials like electronic glass fiber cloth and copper foil, have significantly increased. This project will deeply leverage the parent company's technical expertise and high-end capacity layout in the AI computing and automotive electronics sectors, helping to alleviate the supply-demand gap for high-end computing substrates.
In late July, Guangdong Shengyi Science and Technology Co., Ltd. ("Shengyi Technology"), a leading CCL manufacturer, officially commenced construction on its second factory project in Songshan Lake, Dongguan, with a total investment of approximately 5.2 billion yuan. The project focuses on frontier areas such as high-frequency and high-speed materials for AI servers, electronic substrates for intelligent automotive, and high-end packaging substrate materials. Upon completion, it will produce 48 million square meters of high-performance CCL and 100 million meters of commercial bonding sheets annually, with production gradually commencing in the second half of 2027.
On July 22, Jin'an Guojie Group Co., Ltd. announced that it had signed an investment agreement with the People's Government of Jinwan District, Zhuhai City, for a capacity expansion project. The project involves an intended investment of approximately 2 billion yuan to establish an annual production capacity of 20 million sheets of CCL and 40 million meters of prepreg for sale.
According to forecasts from Prismark, a globally renowned electronic industry market research and consulting firm, the global CCL market size is expected to reach approximately $24.2 billion in 2026, a year-on-year increase of 29.4%. Within this, the high-speed CCL segment is projected to reach about $9.5 billion, a year-on-year increase of 52.6%.
"This round of CCL industry prosperity is not a simple cyclical rebound but a structural upgrade opportunity brought by AI computing iteration. Historically, industry growth was driven mainly by consumer electronics and traditional communications. Now, the demand center has shifted to computing infrastructure like AI servers and high-speed switches, which imposes higher technical barriers on dielectric performance, signal loss, and thermal stability for CCL. There is a supply gap for high-end materials. Domestic manufacturers need to continuously invest in production line upgrades, product certification, and new material R&D. An integrated industry chain layout will create stronger competitive advantages," said Qiu Sisheng, Chief Economist at Shenzhen Wanzhong Management Consulting Co., Ltd.