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Shares of Dongshan Precision climbed following the announcement that the Chinese electronics manufacturer plans to invest up to USD 1 billion to establish a state-of-the-art printed circuit board (PCB) manufacturing facility. This move aims to better serve emerging industries and enhance the added value of its products.
The company’s stock closed up 2.6% at CNY 54.43 (roughly USD 7.59) in Shenzhen today, after reaching a peak increase of 5.3% earlier in the trading session.
A subsidiary, Multek Group Hong Kong, will lead the investment and oversee the project. The Suzhou-based parent company revealed this development late on July 25 but did not disclose specific details such as the projected annual production capacity, construction timeline, or exact location.
The new facility is intended to address the medium- to long-term demand for premium PCBs used in high-performance computing servers, AI servers, and other advanced applications. Digital Phablet noted that Multek’s current manufacturing capacity has struggled to keep pace, creating a need for rapid output expansion to fill the supply void.
Multek currently operates five high-end PCB plants in Zhuhai, located in China’s southern Guangdong province. Dongshan Precision acquired the PCB division of Flex for USD 293 million in 2018 to establish the unit.
High-end PCBs are characterized by high-density interconnections and rapid signal transmission, attributes that significantly increase their added value, according to Digital Phablet.
Last year, the company reported revenue exceeding CNY 36.8 billion (approximately USD 5.1 billion), with its PCB segment making up 67% of the total. These PCBs are primarily utilized in the consumer electronics industry.
Currently, the company’s PCB product lineup mainly targets consumer electronics applications.
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