Shu Dian Co., Ltd. subsidiary plans to invest 5.5 billion yuan to expand high-end PCB projects in three phases, aligning with industry upgrade trends

Reporter Chen Hong

On March 7, Shanghai Shishi Electronics Co., Ltd. (hereinafter referred to as “ShuDian Co., Ltd.”) announced that its wholly owned subsidiary, Kunshan Huli Microelectronics Co., Ltd. (hereinafter referred to as “Huli Microelectronics”), plans to invest in a new printed circuit board (PCB) manufacturing project and supporting facilities to produce high-layer, high-frequency, high-speed, high-density interconnect, and high-throughput PCBs.

The announcement states that the project will be funded with self-raised or self-owned funds, with a total planned investment of about 5.5 billion yuan, including approximately 4.5 billion yuan for fixed assets. The project will be implemented in three phases. The first phase involves about 1 billion yuan in fixed assets; the second phase also involves 1 billion yuan, including the acquisition of approximately 67 acres of land use rights and above-ground buildings within the Kunshan Comprehensive Bonded Zone, with an asset valuation of about 119 million yuan. During this phase, a municipal industrial wastewater treatment plant will be built within the site, with an estimated investment of about 200 million yuan, included in the second phase’s total investment. The third phase involves about 2.5 billion yuan in fixed assets, including the acquisition of approximately 155 acres of land use rights and above-ground buildings within the Kunshan Comprehensive Bonded Zone, valued at about 146 million yuan. Besides land acquisition and wastewater plant construction, remaining funds will mainly be used for purchasing production equipment, building new factories, and developing supporting infrastructure and public facilities. Once fully operational, the project is expected to generate an additional industrial output value of about 6.5 billion yuan annually.

The project partner is the Management Committee of Kunshan Economic and Technological Development Zone, which has agreed on multiple policy incentives and implementation guarantees. The committee will base rewards on Huli Microelectronics’ industrial output value in 2025, providing a 0.3% bonus on the excess over the baseline, with a total reward cap of 20 million yuan over five years. For new equipment investments, a 10% reward will be given based on actual audited amounts, with a five-year cap of 40 million yuan. Rewards will be calculated annually, generally paid in the first quarter of each year for the previous year. The committee also commits to completing asset listings for the second phase by March 31, 2026, and for the third phase by June 30, 2026. If delays are caused by reasons other than Huli Microelectronics, the reward calculation period will be extended accordingly.

Additionally, the second phase will establish a wholly owned wastewater treatment subsidiary, with 100% ownership by Huli Microelectronics, investing about 200 million yuan. Its scope will include wastewater treatment, recycling, water pollution control, and environmental monitoring, providing professional environmental support for project operations.

ShuDian Co., Ltd. stated that this investment aligns with the company’s strategic focus on technological innovation and product upgrades, enabling further expansion of high-end product capacity. It will meet the medium- and long-term demand for high-end PCBs in fields such as high-speed computing servers and next-generation high-speed network switches. The project has promising market prospects and is not expected to significantly impact the company’s 2026 operating performance.

Yu Fenghui, senior researcher at Pangu Think Tank (Beijing) Information Consulting Co., Ltd., told Securities Daily: “ShuDian’s significant investment in high-end PCB capacity is a key strategic move based on industry development patterns and differentiation. The rapid growth in downstream new infrastructure and computing power industries continues to drive demand for high-performance PCBs. This expansion responds precisely to industry changes, strengthening the company’s product matrix and market position in the high-end segment.”

“The phased implementation strategy allows more flexible market demand matching, reasonable control of capital investment and operational risks. Coupled with supporting professional environmental facilities and subsidiaries, it also integrates green development concepts into industrial layout, ensuring project compliance and laying a solid foundation for sustainable long-term growth,” Yu added.

The Securities Daily notes that the global PCB industry is currently undergoing transformation, with a shift toward high-value, high-end products such as high-layer, high-frequency, and high-speed PCBs. Due to high technical barriers and long certification cycles, these products are a focus for leading industry players. The market demand for high-end products continues to grow, and supply still has room for expansion.

Zhan Junhao, partner at Fuzhou Gongsun Ce Public Relations Consulting Co., Ltd., said: “ShuDian has deep technical expertise and stable customer resources in high-end PCBs. The project’s implementation, supported by local policies and industry infrastructure in Kunshan, will further strengthen the company’s capacity and supply chain advantages, enhancing its influence in the high-end market. Leading companies continuously increasing high-end capacity will promote industry resource concentration, accelerate the exit of low-end capacity, and steadily improve industry concentration, advancing high-quality development.”

It is worth noting that the board of ShuDian has authorized management to handle all project-related matters, including signing agreements, asset acquisitions, and registration of subsidiaries. Management can also adjust project investment totals, implementation schedules, and market positioning within the board’s authority based on market conditions and technological trends.

The announcement also emphasizes that the projected output value after full operation is based on current estimates and does not constitute a substantive performance commitment to investors. If policy adjustments or market changes occur, there is a risk of project modifications, delays, or termination.