---
title: "Ascend pulls PCB forward: The three growth curves of SCC, WUS, and SYE"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/290320775.md"
description: "Huawei Ascend AI server supply chain promotes PCB industry upgrade, SCC, WUS, and SYE show performance differentiation in 2025. SCC's net profit attributable to the parent company increased by 74.47%, intensifying investment in packaging substrates; WUS achieved record high revenue and net profit but has a high dependence on overseas markets; SYE's net profit surged by 343.76% but declined quarter-on-quarter in the fourth quarter. The global PCB market growth rate exceeds expectations, but the structural contradictions among enterprises are complex"
datetime: "2026-06-20T06:55:00.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/290320775.md)
  - [en](https://longbridge.com/en/news/290320775.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/290320775.md)
---

# Ascend pulls PCB forward: The three growth curves of SCC, WUS, and SYE

Author's Statement: This image was generated by AI ![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/news_bt/O1LTdRamYWr1yrTb3JCwhR994nXbJT9jJ0aGbFMfgxXzIAA/1000?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

**\[Abstract\] There are three well-established companies that have been deeply engaged in the PCB industry for decades. Due to their different positions in the Huawei AI server supply chain, they have each followed distinctly different growth trajectories in 2025.**

**ShenNan Circuit reported a net profit attributable to the parent company of 3.276 billion yuan, with a growth rate of 74.47%, while continuously increasing its investment in the long-term battle for domestic substitution of packaging substrates; HuDian Co., Ltd. achieved revenue of 18.945 billion yuan and a net profit of 3.822 billion yuan, setting a historical high, with a doubling growth in switch PCBs, but the structural risk of over 80% overseas revenue has never been resolved; ShengYi Electronics saw revenue growth of 102.57% to 9.494 billion yuan, with net profit surging by 343.76%, yet experienced a significant quarter-on-quarter decline in the fourth quarter, falling nearly 30% below market expectations.**

**In 2025, the global PCB market's actual output value reached 85.152 billion USD, with a growth rate of 15.8%, far exceeding the previous forecast of 6.8% by institutions. Prismark's latest forecast predicts it will further increase to 95.78 billion USD in 2026. The industry's fundamentals are hotter than the market expected, but the structural contradictions behind each company are more complex than the surface numbers suggest.**

The following is the main text:

**01**

**Huawei's product definition has raised the ceiling of the PCB industry by an order of magnitude**

Known as the "mother of electronic products," the Printed Circuit Board (PCB) refers to a circuit board formed by copper circuit patterns on a copper-clad board according to a predetermined design. Its main function is to connect various electronic components according to a predetermined circuit, serving as an electrical connection. The printed circuit board is a key interconnection component for assembling electronic parts, providing not only electrical connections for electronic components but also carrying functions such as digital and analog signal transmission, power supply, and RF microwave signal transmission and reception, making it an indispensable component of most electronic devices and products.

As the domestic leader, Huawei is not only a purchaser of PCBs but also a definitional and leading force in technical specifications. From the Ascend 910B and 910C to the latest 950 series, the interconnect bandwidth of chips continues to increase, and power consumption keeps rising, forcing the supporting PCBs to undergo comprehensive upgrades: increased layers, reduced dielectric loss of materials, and tightening requirements for line width precision.

The Huawei Ascend 384 super node consists of 12 computing cabinets and 4 bus cabinets, achieving high-speed bus interconnection for 384 NPU cards, making it the largest product of its kind in the world, with computing power nearly twice that of NVIDIA's GB200 NVL72, memory capacity 3.6 times, and bandwidth 2.1 times. By September 2025, at the Global Connectivity Conference, the 950 series further increased interconnect bandwidth by 2.5 times, equipped with self-developed HBM memory Every generational leap in chip specifications represents a systematic redefinition of the supporting PCB layer count, material loss coefficient, and precision manufacturing processes.

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/news_bt/OOaYRftcliJajx7wmP1lfX73caKODZ8ANofzqjfSQ8PUMAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Source: Observer Network

The performance of the Ascend 950PR is close to 80% of NVIDIA's H200. The PCB value corresponding to a single Ascend AI server has already far exceeded the $407 corresponding to NVIDIA's H100. Since entering mass production in April, it is expected to achieve customer deliveries in the second half of the year, with an annual shipment volume expected to exceed 750,000 units.

More critically, under Huawei's "hardware openness" strategy, it defines the module and interface specifications itself, with ecosystem partners completing the whole machine manufacturing. PCB suppliers must deeply participate in preliminary research early in the chip roadmap, rather than waiting until the product is finalized to adapt. Suppliers that can pass certification and achieve mass production delivery are locked into the supply chain based on their technical capabilities. This is the underlying logic for understanding the respective positions of SYE, SCC, and WUS.

**02**

**Supply Chain, Three Major Leaders Each in Their Place**

Let's start with the core supplier leader of Huawei's Ascend AI server PCB—SCC.

In 2025, the company’s revenue reached 23.647 billion yuan, a year-on-year increase of 32.05%, with a net profit attributable to the parent company of 3.276 billion yuan, a growth rate of 74.47%, both reaching the highest level since its listing. The weighted average return on net assets reached 20.79%, an increase of 7.21 percentage points year-on-year. Operating cash flow was 3.838 billion yuan, with net profit cash content reaching 117.08%. The company plans to distribute 24 yuan for every 10 shares, with a total dividend of 1.635 billion yuan, accounting for 49.91% of the net profit attributable to the parent company, the highest proportion since its listing.

From a business segment perspective, PCB business revenue was 14.359 billion yuan, with a growth rate of 36.84% and a gross margin of 35.53%; packaging substrates were 4.148 billion yuan, with a growth rate of 30.80% and a gross margin of 22.58%; electronic assembly was 3.075 billion yuan, with a growth rate of 8.93% and a gross margin of 15.00%. In Q4, the single-quarter revenue was 6.893 billion yuan, with a net profit of 950 million yuan, a year-on-year growth rate of 143.87%—although there was a slight decline compared to the previous quarter, it remained strong year-on-year.

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/news_bt/Olr1DezqqtuJ-fbkEz7FmpFjV6DB8QP27LW4G7eofo1Q8AA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Table: Core Financial Data of SCC Source: SCC 2025 Annual Report

The backplane mass production layer count is 68 layers, with samples reaching 120 layers. This is the highest among all PCB companies in China and ranks in the first tier globally. The reason SCC was able to secure a core share of Huawei's Ascend supply chain is primarily due to its deep involvement in joint preliminary research from the initial planning stage of the Ascend chip—targeting the layer count leap brought about by the generational upgrade of the Ascend chip Dielectric loss voltage drop, signal integrity, and other core requirements have been completed in advance for the material selection, process verification, and yield ramp-up of high multilayer backplanes and high-speed boards, rather than passively adapting after chip finalization. This proactive R&D model allows its products to seamlessly match the full generational upgrades from the Ascend 910 series to the 950 series, and also enables full coverage of core hardware components in data centers such as AI accelerator cards, high-speed switches, and optical modules within the Huawei Ascend supply chain.

However, ShenNan's strategy is much more complex than that of other PCB companies, as it is simultaneously fighting a more difficult battle—packaging substrates—which is a technological high ground and also a bottomless pit for burning money.

In 2022, the market share of ABF substrates in mainland China was close to zero. Companies like Nanya Technology and Unimicron in Taiwan, Samsung Electro-Mechanics in South Korea, and Ibiden in Japan have almost monopolized the entire market. ShenNan Circuit is the only publicly listed PCB company in China that is scaling up the production of ABF substrates. Currently, FC-BGA has achieved mass production for 22 layers and below, while samples for 24 layers and above are being produced, with the capacity ramp-up at the Guangzhou factory progressing steadily.

Despite the technical breakthroughs being real, the financials look bleak. In the first half of 2025, the gross margin for the packaging substrate business was only 15.15%, and this was a year-on-year decline of 10 percentage points—mainly due to the ramp-up at the Guangzhou factory and rising prices of raw materials like gold salt, which dragged down the gross margin. Although the annual gross margin rebounded to 22.58%, it still has a considerable gap from the overall PCB business's 35.53%.

Referring to Xingsen Technology, which is also engaged in packaging substrates: this business had a gross margin of -25.17% in the first half of 2025, meaning they lost money on every unit sold. ShenNan achieving 23% indicates that the technological accumulation is real, but from the perspective of gross margin, this sector has not yet reached a stage of scalable profitability.

Currently, while ShenNan continues to strengthen its leading position in the printed circuit board business, it is vigorously developing its packaging substrate business, which shares "technological roots," and its electronic assembly business, which shares "customer origins." Both fronts are advancing simultaneously, with R&D expense ratios maintained at 6% over the long term, making it one of the few companies in the industry truly investing heavily in technological breakthroughs. The Thai factory and Nantong Phase IV are set to commence production in the second half of 2025, currently in the early stages of capacity ramp-up, which will exert some pressure on fixed costs in the short term but also lays the foundation for future growth. The net profit in the fourth quarter decreased slightly by 1.65% quarter-on-quarter, which is a normal cost of the new capacity ramp-up period.

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/news_bt/OwBlVuJFukNiWghZHovzSKGVl-mqBlt0IIeIZ6HxOICGUAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Table: ShenNan Circuit's R&D Investment Situation Source: ShenNan Circuit 2025 Annual Report

Looking at Huadian Co., Ltd., as the world's leading switchboard manufacturer, its "global reputation" also makes overseas dependence a sword hanging over its head.

Huadian's total revenue for 2025 was 18.945 billion yuan, a year-on-year increase of 42.00%, with a net profit attributable to the parent company of 3.822 billion yuan, a growth rate of 47.74%, both hitting historical highs PCB business gross margin is 36.91%, and overall net profit margin is 20.16%—this net profit margin level is among the highest tier in major PCB companies in the A-share market. Operating cash flow reached 3.872 billion yuan, a year-on-year increase of 66.52%, exceeding the scale of net profit itself, indicating strong profit realization capability. Q4 single-quarter revenue was 5.433 billion yuan, and net profit was 1.105 billion yuan, both the strongest single quarters of the year, with annual performance showing a trend of acceleration quarter by quarter.

The data communication field is the absolute core of growth: 14.656 billion yuan, a year-on-year increase of 45.21%, accounting for over 80% of overall PCB revenue. Among them, high-speed network switches and routers generated 8.9 billion yuan, a year-on-year increase of 109.89%, nearly doubling—this is the most dazzling figure in the annual report. AI servers and HPC application fields contributed 3.006 billion yuan, and general servers contributed 2.540 billion yuan.

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/news_bt/ONT1WMiyogTce7wytPISSHEd3MRC6N7A8_GHp5t7iEsuwAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Table: Core financial data of WUS Source: WUS 2025 Annual Report

WUS is also an early core participant in Huawei's Ascend interconnection architecture research. In response to the demand for a leap in bus interconnection bandwidth brought by the Ascend 384 super nodes and 950 series, WUS initiated research on 1.6T switch PCBs, high-speed server boards' CoWoP technology, mSAP advanced processes, and optical-copper fusion technology during the chip planning phase of Huawei, completing batch production verification of 800G products and customer sample certification of 1.6T products in advance. This means that when the 1.6T market expands, WUS's revenue window will be 6 to 12 months ahead of competitors. Currently, the company has launched an advanced process incubation platform in Changzhou with a total investment of 300 million USD, implemented in two phases, continuously deepening the next-generation data communication PCB technology. Additionally, another important action for WUS in 2026 is to promote the listing of H-shares on the Hong Kong Stock Exchange to broaden international financing channels.

However, WUS has a structural risk that has never been resolved, as stated directly in the annual report: overseas revenue accounts for over 80% of operating revenue. The company's main customers are largely distributed in North America and Europe. Although the proportion of revenue directly exported to the United States is not high, the biggest potential risk lies in the origin certification policies for PCB electronic products and the ongoing pressure for localization of the US and European supply chains.

This is not just a theoretical concern. India has already imposed anti-dumping duties on Chinese PCBs in 2024. The uncertainty of the global trade friction pattern has significantly increased in 2026. WUS's production base in Thailand, "HuShi Thailand," which is laid out to hedge overseas supply chain risks and serve global top customers, experienced a phase of losses in 2025 due to being in the capacity ramp-up period, with an annual loss of approximately 139 million yuan, becoming another important factor dragging down profit performance and exacerbating performance fluctuations There is another potential issue: its growth space is completely tied to the two product lines of switches and servers, without new tracks like packaging substrates to diversify risks and hedge against fluctuations. This highly focused model indeed gives it strong competitiveness and high gross margins, but it also makes the company's revenue more susceptible to fluctuations, resulting in relatively weak risk resistance.

When it comes to the core beneficiaries of Huawei's Ascend industrial chain, the performance explosion of SYE is particularly remarkable.

"SYE" in this supply chain is divided into two entities: SYE Technology and SYE Electronics.

SYE Technology is the leader in copper-clad laminates (CCL), the direct upstream of the PCB industry. In 2025, the total revenue is expected to reach 28.431 billion yuan, a year-on-year increase of 39.45%, with a net profit attributable to the parent company of 3.334 billion yuan, a year-on-year increase of 91.76%, nearly doubling the annual net profit.

The underlying logic behind the explosive growth in performance is the upgrade of high-end copper-clad laminate product structure combined with both volume and price increases. AI servers and high-speed switches require ultra-low loss materials, known in the industry as M7 and M9 grade CCL. These materials have long been monopolized by Rogers in the United States and Panasonic in Japan. SYE Technology is one of the few domestic companies capable of supplying them in bulk and has already passed the certification of several domestic AI computing clients. The certification cycle for copper-clad laminates usually exceeds one year, and the switching costs are extremely high, which creates strong customer stickiness.

Additionally, SYE Technology holds 62.93% of the equity in SYE Electronics. This means that SYE Electronics can prioritize obtaining high-end CCL supplied by the parent company when producing PCBs, giving it a dual advantage in cost and supply stability for raw materials, a structural advantage that neither WUS nor SCC possesses.

SYE Electronics is the main entity in PCB manufacturing, with Huawei and ZTE as core customers, having deepened its involvement in data communication PCBs for over thirty years. Leveraging the material synergy advantages of its parent company, SYE Electronics also deeply engaged in the early research of AI server PCB processes along Huawei's Ascend chip roadmap, completing mass production verification of ultra-low loss material adaptation and precision back-drilling processes in advance, driving rapid upgrades in product structure.

According to its annual performance forecast released on January 30, 2025, the total revenue for 2025 is expected to achieve a net profit attributable to the parent company of 14.3 billion to 15.1 billion yuan, an increase of 331.03% to 355.88% year-on-year—this growth rate is the most exaggerated among several companies. The underlying logic is the rapid upgrade of product structure: the proportion of AI server-related PCB products is expected to rise rapidly from 48.96% in 2024, and these products use ultra-low loss materials and precision back-drilling processes, with the value per board being more than three times that of ordinary products, directly driving up the gross margin.

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/news_bt/OKfGwtaAOhMPQh_CvDHbx5pa7I6jyRxvcMibN_g2YkeJEAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Source: SYE 2025 Annual Performance Forecast At the same time, based on the performance forecast and the report for the first three quarters of 2025, the net profit for the fourth quarter of 2025 is estimated to be between 316 million and 399 million yuan, a quarter-on-quarter decline of 32%-46%. The actual performance is lower than the market's previous expectations.

The company's explanation is that the product structure adjustment and market demand fluctuations have occurred, but the significant quarter-on-quarter decline in Q4 exposes the issue of the company's relatively concentrated revenue structure—highly dependent on the rhythm of major customers in the server PCB sector. Once the downstream demand slows down in a certain quarter, the performance fluctuations will be very apparent. This risk is worth continuous observation during the capacity expansion cycle in 2026.

In March 2026, Shengyi Electronics announced a private placement to raise no more than 2.6 billion yuan for the AI computing HDI production base and the intelligent manufacturing high-layer circuit board project, with the pace of capacity expansion continuing to accelerate.

**03**

**Main Industry Contradiction: Demand Explosion and Capacity Mismatch**

This industry indeed delivered an unexpectedly strong performance in 2025.

According to Prismark data cited in the 2025 annual report of Huadian Co., Ltd., the actual output value of the global PCB market in 2025 was 85.152 billion USD, a year-on-year increase of 15.8%. At the beginning of the year, institutions generally predicted the growth rate for 2025 to be between 6.8% and 7.6%, while the actual growth rate was more than double the forecast. The driving force of AI infrastructure construction was collectively underestimated.

Prismark's latest forecast is that the global PCB market will further increase to 95.78 billion USD in 2026, with a year-on-year growth of 12.5%. Among them, the output value growth rate of HLC (high-layer boards with more than 18 layers) is expected to reach as high as 62.4%, which is five times the overall industry growth rate. Behind this segmented figure is the continued explosive demand for high-layer PCBs driven by AI data center construction.

Bright numbers cannot hide the contradictions: the supply lag of high-end capacity has not been resolved in 2025, and it may enter another phase after 2026.

On the supply side, in the past two years, leading companies in the PCB industry have collectively stepped on the accelerator for capacity expansion. Huadian's 4.3 billion yuan domestic high-end PCB expansion project is expected to begin trial production in the second half of 2026; Shengyi Electronics' new capacity is expected to be gradually put into production from 2026 to 2027; ShenNan Circuit's Nantong Phase IV and Thailand factories were connected in the second half of 2025 and are currently in the initial stage of capacity ramp-up; Shengyi Technology is also building a CCL factory in Thailand. Over 80% of the top 40 PCB manufacturers globally have announced plans to establish production bases in Southeast Asia, with more than 50 companies laying out in Thailand.

The time lag of this collective capacity expansion is the biggest structural risk in the current industry. The high growth rate in 2025 is largely the result of the explosive demand and the relatively insufficient effective high-end capacity supply—demand exceeding supply has driven up product prices and amplified profit margins. However, when the new capacity is concentratedly released in 2026 and 2027, if the growth rate of AI demand experiences even a brief slowdown, the pressure on prices and gross margins will be relatively concentrated The situation of mid-to-low-end PCBs presents a different picture. About 18% of mid-to-low-end manufacturers in the industry are currently in a state of loss, and homogeneous competition is becoming increasingly fierce. The differentiation between leading companies and mid-to-low-end companies is more pronounced than ever.

The unexpected decline in profits for SYE in Q4 also highlights a fact—companies with a high concentration of customer structure during periods of rapid expansion will experience greater performance volatility. When the order rhythm of one or two major customers experiences seasonal fluctuations, the financial figures will amplify this signal accordingly. This risk is not unique to SYE but is a common issue across the entire high-end PCB sector.

**04**

**Epilogue**

These three companies have chosen three different paths: SCC has opted for deep technology, focusing on packaging substrates, which has the highest moat but is also the most capital-intensive; WUS has chosen to focus on becoming the global leader in switches and data communications, with the most attractive profit margins but the highest concentration of overseas risks; SYE has adopted a system approach, vertically integrating upstream materials with downstream PCBs, resulting in a uniquely shaped moat.

By 2025, all three companies have delivered impressive results. However, following this round of industry expansion, new production capacity will begin to come online in 2026, coupled with the ongoing evolution of trade friction patterns, the differentiation that will emerge in the latter half of this boom is worth continuous tracking.

With each generation of Huawei's Ascend chips, the requirements for PCBs rise a notch, opening a critical window for domestic manufacturers to break into the global high-end market. Companies that keep pace and continuously invest in cutting-edge technology research can not only secure core supply chain shares but also leverage their refined technical capabilities to cover more high-end customers and frontier markets globally, deepening their moats; conversely, those that fail to keep up will fall into the more fiercely competitive mid-to-low-end red ocean market, where stagnation leads to regression

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