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Shares of a printed circuit board manufacturer gained today after the company announced a plan to invest $300 million into developing and mass-producing high-density optoelectronic integrated circuit boards (OEICs) used in artificial intelligence computing and autonomous vehicles.
The company’s stock closed up 0.5% at 69.44 Chinese yuan (approximately $10), after reaching a 4.2% intraday increase. Meanwhile, major stock indices in China retreated after several days of gains, with the Shenzhen Component Index ending the day down 1.4%.
The investment will be carried out in Changzhou, a city in eastern China’s Jiangsu province, as announced yesterday. The project will proceed in two phases: the first focusing on research and development and pilot production of high-density OEICs, followed by large-scale manufacturing once market demand is confirmed.
High-density OEICs combine high-speed printed circuit boards with optoelectronic components to transmit electrical and optical signals for applications in AI, data centers, communications, medical devices, and aerospace.
This initiative highlights the company’s move into advanced interconnection technologies, responding to rising demand from sectors such as AI, data storage, and high-speed optical communication.
Once fully operational, the facility is expected to produce about 1.3 million high-density OEICs annually, generating estimated sales of 2 billion Chinese yuan (around $280 million) and pre-tax profits exceeding 300 million yuan (roughly $42 million).
Construction Details
The first phase will involve an investment of $100 million aimed at creating a platform for advanced packaging technologies, including chip-on-wafer-on-PCB (CoWoP) and other innovative manufacturing processes like the modified semi-additive process (mSAP), within a leased facility covering 50,000 square meters.
CoWoP, a system-in-package technology promoted by Nvidia, facilitates direct bonding between chip-wafer components and printed circuit boards, cutting costs and boosting efficiency. MSAP is a precise, fine-line process supporting high-speed signal transmission in PCBs. Development of CoWoP by Chinese firms is still in the research and verification stage.
Construction of the initial facilities, including plant upgrades and equipment setup, is scheduled to start within six months of company registration, with commercial production projected to commence within a year.
The second phase involves an additional $200 million investment. After confirming the maturity and reliability of the initial production processes and market needs, the firm plans to build a new cleanroom measuring about 60,000 square meters to further scale up manufacturing capacity.
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