<span lang="EN-US" style=""mso-bidi-font-size:10.5pt;font-family:"Times New Roman",serif;">NEWS REPORT Since the start of2026, the global PCBA (Printed Circuit Board Assembly) industry has encountereda dual shift: structural demand explosion and in-depth industrial reshuffle.Driven by high-end segments such as AI computing power, automotive electronicsand optical modules, the high-end production capacity of leading enterprisesremains fully saturated, while the low-end market is mired in cutthroatcompetition due to raw material price hikes and the elimination of outdatedproduction lines. The industry as a whole presents a distinct pattern of"booming high-end sector and large-scale elimination of low-endplayers".

<span lang="EN-US" style=""mso-bidi-font-size:10.5pt;font-family:"Times New Roman",serif;">At present, the accelerated massproduction of hardware including AI servers, HBM storage and 1.6T opticalmodules has become the core growth engine of the PCBA industry. Such high-endproducts impose stringent requirements on PCB layer count, wiring precision andsignal integrity, pushing PCBA manufacturing processes to upgrade towardsultra-fine pitch BGA, micro-component mounting and advanced packagingintegration. The single-unit value of these products has increased severaltimes compared with traditional counterparts. According to industry researchdata, high-end production line orders of leading domestic PCBA manufacturersare scheduled through the first quarter of 2027, with the lead time forcustomized high-layer circuit boards extended to more than 16 weeks; frequentcases of overseas customers paying premiums to secure production capacity havealso emerged.

<span lang="EN-US" style=""mso-bidi-font-size:10.5pt;font-family:"Times New Roman",serif;">Dual pressures from cost andtechnology have accelerated industry capacity clearance. Prices of upstream rawmaterials such as copper clad laminates, solder pastes and MLCCs have risenacross the board, with a growth rate of 15%-30%. Coupled with the fact thatover 60% of outdated SMT production lines are incompatible with high-endprocesses, the gross profit margin of low-end consumer electronics andtraditional home appliance OEM businesses has fallen below 5%, forcing a largenumber of small and medium-sized manufacturers to exit the market. Meanwhile,2026 has become a major year for equipment renewal in the industry. Leadingenterprises are increasing investment in high-precision printing, automatedinspection and advanced ball planting equipment, and domestic SMT equipment isaccelerating import substitution with its high cost-performance ratio, furtherpromoting the intelligent manufacturing upgrade of the industry.

<span lang="EN-US" style=""mso-bidi-font-size:10.5pt;font-family:"Times New Roman",serif;">Insiders noted that futurecompetition in the PCBA industry will focus on three core capabilities:high-end process technology, supply chain control and automation. With thelarge-scale implementation of AI hardware and continuous penetration of newenergy automotive electronics, enterprises capable of processing high-frequencyand high-speed circuit boards and adapting to advanced packaging will continueto seize market dividends. In contrast, manufacturers relying on low-end OEMservices will face greater survival pressure, and industry concentration isexpected to rise further.