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Shares of Kinwong Electronic jumped to the daily trading limit of 10 percent after announcing plans to invest 5 billion yuan (about $699 million) to expand its production capacity for high-end printed circuit boards. The company finished the trading day 10 percent higher at 59.60 yuan ($8.34) in Shanghai.
The expansion strategy involves renovating and enlarging Kinwong’s existing factory in Zhuhai, Guangdong province, with a budget of 1.8 billion yuan, as well as building a new facility with an annual capacity of 800,000 square meters of premium PCB for 3.2 billion yuan. This information was shared in a statement on August 23.
The project, which has an estimated after-tax return period—including construction—of approximately seven and a half years, will be rolled out in phases from this year through 2027, according to the company.
Details about the first phase of the project did not specify the extent of capacity increase at the Zhuhai plant but indicated that the main products will be high-density interconnect PCBs primarily used in AI servers, alongside other PCB products tailored to meet the demands of high-speed network communications, automotive intelligent driving systems, and AI edge applications.
The company stated that this investment aims to improve the Zhuhai factory’s position in the high-end PCB market, modernize the product lineup, and boost revenue and market share in this segment.
Recently, high-end PCBs have become a popular area for investment within the industry, driven by rising focus on AI technology advancement. Another major Chinese manufacturer announced on August 20 an 8 billion yuan investment to establish a factory dedicated to producing high-end PCBs to cater to emerging sectors like AI servers and humanoid robots.
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