I'm LongbridgeAI, I can summarize articles.CICC released a research report indicating that with the development of AI technology, global computing power demand has surged, driving the expansion of the high-performance server market, which in turn increases the demand for PCB and CCL substrate markets. It is expected that the domestic copper-clad laminate sales area will reach 1.09 billion square meters in 2024, with a production forecast of 1.17 billion square meters in 2025. The demand for silicon micro-powder will reach 440,000 tons, especially the demand for spherical silicon micro-powder for high-frequency and high-speed copper-clad laminates is expected to grow by 22.7% year-on-year
According to the report released by China International Capital Corporation (CICC), with the rapid development of technologies such as AI large models, the global demand for computing power is experiencing explosive growth, directly driving the rapid expansion of the high-performance server market and significantly increasing the demand for upstream PCB and CCL substrates. Data from Zhongshang Intelligence Network indicates that the domestic sales area of copper-clad laminates will reach 1.09 billion square meters in 2024. Considering the emerging demand from downstream sectors such as 5G, AI servers, and automotive electronics, it is predicted that the production of copper-clad laminates will reach 1.17 billion square meters in 2025. It is expected that the demand for silicon micro-powder for copper-clad laminates in China will be 440,000 tons in 2025, of which the demand for spherical silicon micro-powder for high-frequency and high-speed copper-clad laminates will be about 117,000 tons, a year-on-year increase of 22.7%.
CICC's main viewpoints are as follows:
Increased demand for computing power leads to higher demand for PCB/CCL/upstream materials
With the rapid development of technologies such as AI large models, the global demand for computing power is experiencing explosive growth, directly driving the rapid expansion of the high-performance server market and significantly increasing the demand for upstream PCB and CCL substrates:
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PCB: According to CICC's technology team, major PCB companies are expected to see high year-on-year growth in performance in Q1 2025; Prismark's data shows that the global PCB market value will reach USD 73.6 billion in 2024, a year-on-year increase of 5.8%; it is expected that the global PCB market will achieve a year-on-year growth of 6.8% in 2025, with the high multi-layer and HDI market values expected to achieve even higher growth rates, with year-on-year increases of 41.7% and 10.4% respectively in 2025.
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CCL: According to the announcement from Lianrui New Materials, the global CCL market is expected to have a compound annual growth rate of 9% from 2024 to 2026, while the high-end CCL (HDI & high-speed high-frequency) market is expected to have a compound annual growth rate as high as 26% during the same period.
High-frequency and high-speed copper-clad laminates are expected to drive rapid growth in silicon micro-powder demand
Data from Zhongshang Intelligence Network indicates that the domestic sales area of copper-clad laminates will reach 1.09 billion square meters in 2024. Considering the emerging demand from downstream sectors such as 5G, AI servers, and automotive electronics, it is predicted that the production of copper-clad laminates will reach 1.17 billion square meters in 2025. It is expected that the demand for silicon micro-powder for copper-clad laminates in China will be 440,000 tons in 2025, of which the demand for spherical silicon micro-powder for high-frequency and high-speed copper-clad laminates will be about 117,000 tons, a year-on-year increase of 22.7%.
Focus on the performance elasticity brought by new capacity and new products from companies like Lianrui New Materials
Lianrui New Materials plans to build a production capacity of 3,600 tons of high-performance spherical silicon, which is expected to enhance the company's performance. According to the announcement, Lianrui New Materials intends to invest 423 million yuan to construct a facility for the annual production of 3,600 tons of ultra-pure spherical powder materials for high-speed substrates to meet the rapidly growing market demand in fields such as AI and high-speed communications, providing key material support for downstream high-performance servers and other sectors. Additionally, attention should be paid to the progress of companies like SINOCERA MATERIAL and Yake Technology in the layout of spherical silicon products for CCL: According to the announcement, SINOCERA MATERIAL has achieved a technological breakthrough in spherical silica for copper-clad laminates; Yake Technology is expected to have an annual production capacity of 20,000 tons of spherical silicon micro-powder by the end of 2024, and a project for the localization of 39,120 tons of electronic powder materials for semiconductors is currently under construction Target Aspects
It is recommended to pay attention to the progress of new capacity expansion of the leading silicon micro-powder company Lianrui New Materials, as well as the layout of CCL silicon micro-powder by SINOCERA MATERIAL (300285.SZ) and Yake Technology (002409.SZ).
Risk Factors
CCL demand growth is less than expected, and competition in the silicon micro-powder industry is intensifying