Shu Dian Co., Ltd. invests over 10 billion yuan within a month to expand high-end PCB production capacity

Reporter Chen Hong

On the evening of April 1, Suzhou Unisun Electronics Co., Ltd. (hereinafter referred to as “Unisun Electronics”) issued an announcement stating that the company plans to invest in constructing a printed circuit board (PCB) production project and supporting facilities. The project is intended to be funded with the company’s own funds or self-raised funds, with a planned total investment amount of approximately 6.8 billion yuan.

What is noteworthy is that this is the second major deployment of PCB capacity within a month by Unisun Electronics after it announced on March 7 plans to invest around 5.5 billion yuan to build a high-end PCB project. The two PCB capacity investment plans together have a combined total investment amount of approximately 12.3 billion yuan.

Yu Fenghui, a senior research fellow at Pangu Think Tank, told reporters from Securities Daily: “Unisun Electronics has made two major investments to expand capacity. This is not only a rational assessment by industrial capital of the long-term development value in the high-end printed circuit board track, but also a strategic positioning move by leading companies based on their own competitive advantages. The dense release of large-scale capacity expansion plans in a short period of time not only confirms the company’s certainty in judging the growth of high-end demand in areas such as downstream AI (artificial intelligence) computing power and next-generation network communications, but also reflects its comprehensive strength in terms of capital reserves, allocation of resources across the industrial chain, and strategic decision-making efficiency. Proactive capacity expansion guided by market demand is also a typical example of industrial capital helping the high-end manufacturing track upgrade its production capacity.”

Specifically, the current investment project of approximately 6.8 billion yuan will be implemented by Unisun Electronics as the operating entity, in cooperation with the Administrative Committee of Kunshan High-tech Industrial Development Zone (hereinafter referred to as “Kunshan Hi-Tech Zone Management Committee”). The local government will provide end-to-end factor guarantees and supporting support for the project’s implementation. According to the investment agreement that the two sides plan to sign, the Kunshan Hi-Tech Zone Management Committee will set up a working team to coordinate and oversee project construction, helping the company start construction early, complete construction early, start production early, and achieve results early. It will be responsible for arranging basic infrastructure support construction such as power capacity augmentation, municipal water pipeline capacity expansion, and expansion of wastewater discharge volume to outside the project land’s red-line boundary, and for coordinating to resolve accommodation demand brought about by the project’s capacity expansion. It will actively assist the company in securing emission quotas required for production processes, coordinate and implement land-use indicator matters, and assist in legally completing land tender and title registration and other related matters.

In terms of project positioning, this project is in line with the national industrial policies and industry development trends, and aligns with Unisun Electronics’ differentiated product competition strategy centered on technological innovation and product upgrades. After the project reaches production, it will further expand the company’s product production capacity, precisely seize industry structural growth opportunities, and effectively match and meet customers’ long-term incremental demand for high-performance and highly reliable printed circuit boards in areas such as high-speed computing servers and next-generation high-speed network switches. It will help the company expand its operating scale, optimize its product structure, and enhance its core competitiveness.

At the same time, Unisun Electronics also issued an announcement warning of multiple risks related to the project implementation. This project has a certain construction cycle. If in the future market demand growth is lower than expected, progress in business promotion or fluctuations in product prices differ significantly from expectations, there may be risks of changes, delays, suspension, or termination in project implementation. After production, it may face external risks such as macroeconomic fluctuations, technological changes, and intensifying industry competition. If the release of new capacity cannot be synchronized with customer demand, there may be situations where capacity utilization rates are insufficient and the project fails to achieve expected benefits.

In addition, for the project to be implemented, it still needs to complete prior approvals such as government project filing/approval and registration, environmental impact assessment (EIA), energy evaluation (energy assessment), and construction tendering. If relevant policies are adjusted or approval conditions change, there may be risks of changes, delays, suspension, or termination in project implementation. In response to the above risks, Unisun Electronics stated that it will maintain close communication with local governments and do its best to cooperate with the advancement of all approval work.

One month before the disclosure of this approximately 6.8 billion yuan project, Unisun Electronics had already issued an announcement on March 7, agreeing that its wholly owned subsidiary Kunshan Huli Microelectronics Co., Ltd. would invest approximately 5.5 billion yuan to build a new printed circuit board production project, focusing on high layer count, high-frequency high-speed, high-density interconnect, and high-throughput printed circuit boards and other high-end categories.

It is reported that the 5.5 billion yuan project’s fixed-asset investment is approximately 4.5 billion yuan, to be implemented in three phases in an orderly manner. After reaching full production, it is expected to add approximately 6.5 billion yuan in annual industrial output value.

Zhang Xiaorong, president of the Institute for Advanced Technology Research, told reporters from Securities Daily: “High-end PCBs have industry characteristics such as high technical barriers, long capacity construction cycles, and stringent customer certification systems. Laying out first-mover capacity is key to companies consolidating their market positions. With the rapid development of emerging industries such as AI computing power and cloud computing at present, it is driving high-end PCB markets to form structural growth opportunities. Unisun Electronics’ expansion across two consecutive rounds has both focused on high-end segment-specific categories. This not only aligns with the trend of dual upgrades in industry technology and demand, but also can further strengthen the company’s ability to supply high-end products and customer stickiness by adding capacity.”

“Both projects received full-spectrum factor support from the local government in Kunshan, achieving a deep alignment between the company’s industrial layout and the regional industrial development plan. This government-enterprise coordination model not only provides crucial support for efficient implementation of large-scale capacity expansion projects, but can also promote the ‘chain completion and strengthening’ of the regional electronic information industrial chain, achieving a win-win outcome for both company development and local industrial upgrading,” Zhang Xiaorong said.

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