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In the DeepSeek craze, the biggest beneficiaries are actually PCB companies?Recently, the domestic large-scale model DeepSeek has ignited market enthusiasm with its breakthrough in low-cost and high-performance technology. Research reports released by several Chinese institutions indicate that the DeepSeek model has brought new opportunities for the implementation of AI applications and commercialization scenarios, promoting model equity. It is expected to accelerate the vigorous development of the AI application field, thereby enhancing the business performance of related enterprises.According to data compiled by the Securities Times, companies distributed across different segments of the AI application industry chain—ranging from chip design, packaging and testing, sensors, PCB manufacturing, server manufacturing, to data centers, algorithm applications, and terminal products—have been forecasted by dozens of institutions to achieve a compound net profit growth rate of over 20% from 2024 to 2025. China's Wus Printed Circuit Co., Ltd. (WPCB) announced that it expects to achieve a total operating revenue of 13.342 billion yuan in 2024, a year-on-year increase of 49.26%, with a net profit of 2.587 billion yuan, up 71.05% year-on-year. The basic earnings per share are projected to be 1.35 yuan, an increase of 70.14% compared to the previous year. WPCB's primary revenue comes from its PCB (Printed Circuit Board) business. Regarding the anticipated growth in performance, WPCB stated that its PCB business is expected to generate revenue of approximately 12.839 billion yuan in 2024, a year-on-year increase of about 49.78%. Additionally, with the further optimization of the company's PCB product structure, the gross margin of the PCB business has risen to approximately 35.85%, an increase of about 3.39 percentage points year-on-year. Shengyi Electronics has also released its latest performance report, forecasting a net profit of 299.5 million to 358.1 million yuan for 2024, which would mark a turnaround from losses to profits compared to the same period last year. The company expects to achieve a non-GAAP net profit of 294 million to 353 million yuan. Shengyi Electronics attributed this improvement to the continuous optimization of its product structure and the active enhancement of its regional business layout. With the growing market demand for multilayer PCBs with high layer counts, precision, density, and reliability, the company's revenue has significantly increased compared to the previous year, leading to a profitable turnaround. From the financial reports of these companies, we can observe that with the advancement of AI technology and the recovery of consumer electronics demand, the PCB industry is entering a new upward cycle. Prismark predicts that the global PCB output value will grow at a compound annual growth rate (CAGR) of 14% from 2023 to 2026. As AI technology accelerates and its applications deepen, the demand for high computing power and high-speed networks in the new-generation information technology industry is becoming increasingly urgent. This drives the industry's demand for larger-sized, high-layer-count, high-frequency, high-speed, advanced HDI, and high thermal conductivity PCB products. The demand for PCB products in areas such as high-speed communication networks, data center switches, AI accelerator cards, and storage devices is influenced by these trends. According to Prismark data, from 2023 to 2028, the PCB product segment for servers and storage devices is expected to grow at a CAGR of 11.6%, making it one of the fastest-growing application fields. At the same time, as the performance of AI servers improves, higher requirements are being placed on PCBs, which is expected to significantly increase the application of HDI products. Guanghe Technology recently revealed during an institutional research session that HDI, which utilizes high-density interconnects and micro-blind and buried via technology, is becoming increasingly widely used in the new generation of AI servers. The company is actively planning and laying out advanced HDI production capacity to enhance its process capabilities and meet the demands of downstream customers. Currently, the company's HDI production capacity is relatively small, primarily catering to the needs of downstream customers for data center-related products. The company is promoting technical upgrades to increase the production capacity of these products.

On January 20, 2025, DeepSeek officially released DeepSeek-R1 and simultaneously open-sourced the model weights. According to third-party statistics, the number of daily active users of DeepSeek exceeded 20 million in just 20 days after its launch, and its daily active growth rate has exceeded that of ChatGPT, which was popular at the time.China's AI big model DeepSeek has exploded, frequently appearing on the hot search list at home and abroad, becoming the hottest new star in the technology industry. Some industry insiders pointed out that DeepSeek may be connected to China's domestically produced GPUs, which will have a positive driving effect on the development of China's GPUs. So will it also play a certain role in driving the PCB industry? Let's take a look at which industries have ushered in product upgrade opportunities due to the popularity of DeepSeek.After the phenomenal popularity of DeepSeek, both the company and the industry development will accelerateOn January 20, 2025, DeepSeek officially released DeepSeek-R1 and open-sourced the model weights. DeepSeek, ChatGPT and Le Chat have risen up, representing the technical strength of China, the United States and Europe respectively. ChatGPT's membership function may be daunting for most people, but DeepSeek's free and open source allows most ordinary people to get a free ticket. This is an AI feast for ordinary people, and DeepSeek has therefore received unprecedented popularity and support. Therefore, DeepSeek's explosion has caused a huge impact on the US AI industry. Previously, DeepSeek's excellent performance and computing power cost that is less than 1/20 of OpenAI caused Nvidia's stock price to plummet 17% overnight, and its market value evaporated by nearly 600 billion US dollars. This is the largest single-day drop in US stocks. On the same day, DeepSeek dealt a heavy blow to US technology stocks. In addition to Nvidia, companies such as Broadcom, TSMC, AMD and ASML all experienced varying degrees of decline. In addition, DeepSeek's strength has also caused concerns in some countries. For example, the U.S. Congress recently proposed the "Decoupling of U.S. Artificial Intelligence Capabilities from China Act by 2025". The main contents of the bill include: prohibiting Americans from advancing artificial intelligence capabilities in China, prohibiting the downloading or use of DeepSeek, otherwise it will be classified as a crime and sentenced to up to 20 years in prison. Subsequently, Italy announced that due to lack of information on the use of personal data by the artificial intelligence model DeepSeek, the agency has removed DeepSeek from the shelves; the French privacy regulator National Commission for Information Technology and Freedoms (CNIL) stated that the agency will question the Chinese startup DeepSeek; Australia stated that DeepSeek posed an "unacceptable risk" to government technology and the immediate implementation of the ban was to "protect Australia's national security and national interests." The reason why DeepSeek became popularAlthough DeepSeek once hit Nvidia's stock price hard, it is also based on Nvidia's high-performance computing chip training, and Nvidia's chip leadership is still unquestionable. However, DeepSeek's technological innovation still needs more powerful hardware support. When asked about the innovation points compared with traditional AI models, DeepSeek summarized the following points: l High performance and accuracy: DeepSeek uses advanced deep learning algorithms and large-scale data sets for training, which enables it to perform well in multiple application scenarios, such as natural language processing and image recognition. Its high accuracy and rapid response capabilities have won wide recognition from users.l Technological innovation: DeepSeek has made many innovations in model architecture and training methods, such as introducing more efficient neural network structures and optimization algorithms. These technological breakthroughs have significantly improved the performance and efficiency of the model.l Powerful hardware support: DeepSeek uses NVIDIA's high-performance GPUs (such as A100 and H100). These hardware provide powerful computing power, making the model training and reasoning process more efficient, further improving the user experience.l Wide range of application scenarios: DeepSeek not only performs well in academic research, but also shows great potential in commercial applications. Whether it is intelligent customer service, content recommendation, autonomous driving, or medical diagnosis, DeepSeek can provide strong support to meet diverse market needs. in conclusionIn the future,the AI advancement of high performance and accuracy may require more powerful computing power. At the same time, AI models such as DeepSeek are also actively cooperating with academia and industry to promote the rapid iteration and application of technology. I believe that in the near future, not only the AI industry, but also different industries such as industrial automation, pan-security, content filtering, medical imaging and signal processing, automated driving, and artificial intelligence will also be impacted by this wave, ushering in industrial iteration and upgrading. As the most basic hardware support, the PCB industry also needs to ensure efficient and stable data processing and transmission in order to meet the needs of various AI applications and usher in its own spring.

On January 20, 2025, DeepSeek officially released DeepSeek-R1 and simultaneously open-sourced the model weights. According to third-party statistics, the number of daily active users of DeepSeek exceeded 20 million in just 20 days after its launch, and its daily active growth rate has exceeded that of ChatGPT, which was popular at the time.China's AI big model DeepSeek has exploded, frequently appearing on the hot search list at home and abroad, becoming the hottest new star in the technology industry. Some industry insiders pointed out that DeepSeek may be connected to China's domestically produced GPUs, which will have a positive driving effect on the development of China's GPUs. So will it also play a certain role in driving the PCB industry? Let's take a look at which industries have ushered in product upgrade opportunities due to the popularity of DeepSeek.After the phenomenal popularity of DeepSeek, both the company and the industry development will accelerateOn January 20, 2025, DeepSeek officially released DeepSeek-R1 and open-sourced the model weights. DeepSeek, ChatGPT and Le Chat have risen up, representing the technical strength of China, the United States and Europe respectively. ChatGPT's membership function may be daunting for most people, but DeepSeek's free and open source allows most ordinary people to get a free ticket. This is an AI feast for ordinary people, and DeepSeek has therefore received unprecedented popularity and support. Therefore, DeepSeek's explosion has caused a huge impact on the US AI industry. Previously, DeepSeek's excellent performance and computing power cost that is less than 1/20 of OpenAI caused Nvidia's stock price to plummet 17% overnight, and its market value evaporated by nearly 600 billion US dollars. This is the largest single-day drop in US stocks. On the same day, DeepSeek dealt a heavy blow to US technology stocks. In addition to Nvidia, companies such as Broadcom, TSMC, AMD and ASML all experienced varying degrees of decline. In addition, DeepSeek's strength has also caused concerns in some countries. For example, the U.S. Congress recently proposed the "Decoupling of U.S. Artificial Intelligence Capabilities from China Act by 2025". The main contents of the bill include: prohibiting Americans from advancing artificial intelligence capabilities in China, prohibiting the downloading or use of DeepSeek, otherwise it will be classified as a crime and sentenced to up to 20 years in prison. Subsequently, Italy announced that due to lack of information on the use of personal data by the artificial intelligence model DeepSeek, the agency has removed DeepSeek from the shelves; the French privacy regulator National Commission for Information Technology and Freedoms (CNIL) stated that the agency will question the Chinese startup DeepSeek; Australia stated that DeepSeek posed an "unacceptable risk" to government technology and the immediate implementation of the ban was to "protect Australia's national security and national interests." The reason why DeepSeek became popularAlthough DeepSeek once hit Nvidia's stock price hard, it is also based on Nvidia's high-performance computing chip training, and Nvidia's chip leadership is still unquestionable. However, DeepSeek's technological innovation still needs more powerful hardware support. When asked about the innovation points compared with traditional AI models, DeepSeek summarized the following points: l High performance and accuracy: DeepSeek uses advanced deep learning algorithms and large-scale data sets for training, which enables it to perform well in multiple application scenarios, such as natural language processing and image recognition. Its high accuracy and rapid response capabilities have won wide recognition from users.l Technological innovation: DeepSeek has made many innovations in model architecture and training methods, such as introducing more efficient neural network structures and optimization algorithms. These technological breakthroughs have significantly improved the performance and efficiency of the model.l Powerful hardware support: DeepSeek uses NVIDIA's high-performance GPUs (such as A100 and H100). These hardware provide powerful computing power, making the model training and reasoning process more efficient, further improving the user experience.l Wide range of application scenarios: DeepSeek not only performs well in academic research, but also shows great potential in commercial applications. Whether it is intelligent customer service, content recommendation, autonomous driving, or medical diagnosis, DeepSeek can provide strong support to meet diverse market needs. in conclusionIn the future,the AI advancement of high performance and accuracy may require more powerful computing power. At the same time, AI models such as DeepSeek are also actively cooperating with academia and industry to promote the rapid iteration and application of technology. I believe that in the near future, not only the AI industry, but also different industries such as industrial automation, pan-security, content filtering, medical imaging and signal processing, automated driving, and artificial intelligence will also be impacted by this wave, ushering in industrial iteration and upgrading. As the most basic hardware support, the PCB industry also needs to ensure efficient and stable data processing and transmission in order to meet the needs of various AI applications and usher in its own spring.

If the US government launches an antitrust investigation against technology giants such as NVIDIA and Microsoft, although the direct impact is mainly on the software, hardware and semiconductor industries, it may also indirectly affect the PCB industry. Here are some potential impacts: 1. Supply chain adjustment and demand changesAffecting semiconductor manufacturers and electronic equipment manufacturers: Companies such as NVIDIA and Microsoft have a huge position in the global technology industry. Antitrust investigations may cause these companies to need to adjust their market strategies, pricing models, or face stricter market competition requirements. If the business adjustments of these companies lead to changes in market demand, the production demand of related electronic products (such as graphics cards, servers, data center hardware, etc.) will also fluctuate.PCB demand is affected: These large companies usually rely on a large number of printed circuit boards (PCBs) for their products. If their product lines change (such as launching new products, modifying production plans, or adjusting supply chains), the demand for PCBs may also change. For example, if the demand for Microsoft's game consoles or NVIDIA's graphics cards decreases, this may cause PCB manufacturers to face the risk of reduced sales.2. Adjustment of investment and R&D directionRestricted technological innovation: Antitrust investigations may often cause these companies to slow down or adjust the pace of mergers and acquisitions, R&D, and technology investment. If companies such as Microsoft or Nvidia are forced to change their strategies, it may affect their investment in technological innovation, thereby affecting small and medium-sized companies in the relevant supply chain, including manufacturers that provide PCBs to these large companies.Impact on PCB technological innovation: For example, if Nvidia's GPU products change due to regulatory pressure, it may reduce the demand for high-end, high-performance PCBs, which is a challenge for PCB manufacturers that focus on such products.3. Redistribution of the supply chainChanges in supplier market share: If these giant companies are forced to reorganize or split their businesses due to antitrust investigations, their original supply chain structure may be adjusted. Some smaller PCB manufacturers may benefit from this because more dispersed suppliers may bring them new business opportunities. But at the same time, there may be instability in the market, leading to increased uncertainty in the supply chain.The rise of alternative suppliers: Once the main suppliers in the market face regulatory pressure, other companies that have not been fully utilized may get more opportunities. For example, if Nvidia is restricted in certain product areas, it may seek more alternative suppliers, which may turn to different PCB manufacturers.4. Capital market reactionReduced capital investment: If the antitrust investigation leads to market uncertainty about the prospects of companies such as Nvidia and Microsoft, it may trigger turbulence in the capital market and affect investors' confidence in the entire technology industry. This uncertainty may indirectly affect the PCB industry, especially in PCB companies that rely on large customers. Investors may be more cautious and reduce their capital investment in the PCB industry.Impact of capital flow: Antitrust cases may lead to changes in investment capital flows related to these companies, thereby affecting the financing, technology research and development, and expansion plans of PCB manufacturers. In particular, for those PCB manufacturers that are smaller and rely on large customers, market turbulence may bring greater pressure.5. Changes in policy and regulatory environmentTighter regulatory policies: If antitrust investigations ultimately lead to new policies (such as stricter antitrust laws or regulatory measures), this may have an impact on the entire technology supply chain. For the PCB industry, there may be more supply chain transparency requirements or competition compliance pressure, which will affect the way it operates.Changes in trade policies: Antitrust investigations may trigger broader policy adjustments and even affect trade agreements of multinational companies. This may indirectly affect PCB manufacturers engaged in cross-border transactions, especially those with long-term cooperation with these technology giants.6. Changes in the competitive environmentIndustry restructuring or mergers: If the antitrust investigation ultimately leads to structural adjustments, asset sales or mergers with competitors by companies such as Nvidia and Microsoft, this may lead to changes in the overall industry competition landscape. The PCB industry may usher in new competitors or supply chain restructuring, leading to changes in market demand, prices and technical requirements. SummaryAlthough the US antitrust investigations on Nvidia, Microsoft and other companies are not directly targeted at the PCB industry, there is still a great possibility that they will indirectly affect the PCB industry from multiple aspects such as market demand, supply chain stability, investment flows, and policy adjustments. Manufacturers and suppliers in the PCB industry may need to pay attention to these changes and adjust their strategies to cope with potential market fluctuations and uncertainties. At the same time, with the high degree of interconnection in the global technology industry, any major changes in the industry may bring about a series of chain reactions.