Gavekal Technologies

The AI world suffered tremors last week, as doubts began to surface about the frontier labs’ revenue growth and the rising amount of high-priced debt used to finance the US’s data center building binge. The risks raise a question: when and if the American AI bubble pops, can China race ahead? Probably not.

China accounts for nearly 60% of the global production value of printed circuit boards, foundational components in numerous defense and civil applications. AI is driving the demand for advanced PCBs and tightening the supply of various critical upstream materials.These trends could accelerate industry consolidation and strengthen China’s leading players, at a time when foreign governments are seeking to reduce dependence on Chinese PCBs.