Unrelenting AI demand spawns new plant for Chinese PCB maker Victory Giant

Victory Giant Technology, a Chinese printed circuit board (PCB) maker, is aggressively expanding its manufacturing presence and securing new international orders as the demand for artificial intelligence hardware surges in China. The company, based in Guangdong, is negotiating deals with major US firms, capitalizing on the growing demand for graphics processing units (GPUs) and application-specific integrated circuits (ASICs) used in AI computing.

Victory Giant's production pipeline for Nvidia's upcoming Kyber rack system is reportedly progressing smoothly.

To meet the escalating demand, the company is expanding its operations within Guangdong province. In a strategic move, it acquired a 100,000-square-meter (1.08 million square foot) industrial land plot in Huizhou, earmarked for an "AI high-end electronic circuit smart manufacturing" facility. Although Victory Giant did not respond to a request for comment, its Hong Kong-listed stock rose 4.4% to HK$231 on Thursday, reflecting the company's ambitions of becoming a leading global supplier of high-end PCBs for AI computing.

The land acquisition is expected to cost at least 3 billion yuan (US$444 million), with a minimum of 2 billion yuan allocated to fixed assets.

This aggressive expansion is part of a broader boom in China's domestic PCB sector, which has become the backbone of the global AI hardware ecosystem. Nvidia, which is heavily investing in its next-generation AI rack system, is a key driver of this growth. Victory Giant, which entered Nvidia's Hopper-series AI accelerator supply chain in 2023, is projected to be a tier-one supplier in 2024.

The company could start shipping Nvidia's Rubin GPU in mid-2026, with potential ramp-up in the second half of the year, according to Nomura analysts. The shift towards AI computing is also evident in the financial performance of other Chinese component manufacturers. Shengyi Technology, another Guangdong-based PCB maker, expects its net profit to jump by up to 131% to 3.3 billion yuan in the first half, while WUS Printed Circuit and Shennan Circuits also anticipate significant profit increases.