Analysis of the Global Copper Clad Laminate Market Competitive Landscape Between Shengyi Technology and Kingboard Laminates

Based on collected industry information and market data, I have prepared an in-depth analysis report on the competitive landscape between Shengyi Technology and Kingboard Laminates in the copper clad laminate market.

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The global rigid copper clad laminate market presents a highly concentrated oligopolistic structure. According to Prismark data, in 2023, the CR5 of the global rigid copper clad laminate industry reached approximately 55%, with the top 10 suppliers accounting for 77% of total sales [0][1]. In 2024, the global copper clad laminate market size was approximately USD 15 billion, representing an 18% year-on-year growth. This rebound was driven jointly by a strong 14% sales volume growth and a moderate 4% recovery in average selling prices [2].

The rankings and market shares of the top 5 global rigid copper clad laminate enterprises in 2023 are as follows [3][4]:

Rank	Enterprise	Market Share	Notes
1	Kingboard Laminates (01888.HK)	~15%	Global No.1
2	Shengyi Technology (600183.SH)	~14%	Global No.2
3	Taiguang Electronics	~10%	Taiwanese Leader
4	Nan Ya Plastics	~9%	Taiwanese Manufacturer
5	Panasonic	~7%	Japanese Manufacturer

As of 2024, the global market shares of the two companies have converged, both standing at approximately 13.7%-14%, with the gap narrowed to around 1 percentage point [5][6].

The copper clad laminate industry is undergoing structural upgrading, mainly reflected in the following aspects [7][8]:

• AI-Driven Demand Surge
  : AI servers represented by NVIDIA GB200 have raised higher technical requirements for copper clad laminates, with M7 and M8 grade materials becoming mainstream demand
• Accelerated Material Upgrading
  : Evolution from traditional Mid Loss to Ultra Low Loss (M6/M7/M8/M9) grades, with prices increasing 3-5 times
• High-Frequency & High-Speed Evolution
  : The number of PCB layers for servers has increased from 12-16 layers to 20-30 layers, significantly boosting the value of copper clad laminates
• Automotive Electronics Penetration
  : The usage of PCBs in new energy vehicles has risen from 0.6-1 square meter per vehicle to 5-8 square meters per vehicle

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Kingboard Laminates is the only global manufacturer covering the entire industrial chain of “glass fiber cloth + copper foil + resin + copper clad laminate” [9][10]:

• Electronic Glass Fiber Cloth
  : 80% self-sufficiency rate, with significant cost advantages
• Copper Foil Business
  : HVLP3 high-end copper foil has been mass-produced, while HVLP4 is under development
• Resin Business
  : 60% self-sufficiency rate for epoxy resin, with joint development of PTFE resin alongside Japan’s Mitsubishi Chemical
• Cost Advantage
  : Its integrated layout enables costs to be 10%-15% lower than those of peers

• 2024 copper clad laminate capacity utilization rate reached 95% (the industry average is approximately 80%)
• Highly diversified customer structure, with the top 5 customers contributing less than 30% of total revenue
• Operates over 20 production facilities in East China and South China
• Added 400,000 sheets of monthly capacity in Thailand in the second half of 2024

Indicator	2024	Year-on-Year Change
Operating Revenue	~RMB 17 Billion	+25%
Gross Profit Margin	~35%	+5pct
Net Profit	~HKD 1.8 Billion	+50%
Liability Ratio	~42%	Flat

Shengyi Technology has established itself among the world’s top tier in the high-frequency and high-speed copper clad laminate segment [11][12]:

• Core Indicators Benchmarking International Leaders
  : The SCGA-500 product boasts a Dk value of 2.2 and Df value of 0.0009, fully matching the performance of similar products from US-based Rogers
• Leading Product Grades
  : M8 grade products have been mass-supplied, with forward-looking deployment of M9 technology
• Industry’s Highest R&D Investment
  : 2024 R&D expenses reached RMB 1.157 billion, exceeding the total R&D expenditure of the other five domestic listed copper clad laminate companies combined
• Breakthrough in Packaging Substrates
  : IC carrier board products have been mass-adopted in fields such as card packaging, LED, and memory chips

The company’s products have obtained certifications from global leading end customers [13][14]:

• AI Sector
  : NVIDIA (GPU, AI servers)
• Communications Sector
  : Huawei, ZTE, Nokia
• Automotive Electronics
  : Bosch, Siemens, Tesla
• Server/Storage
  : Inspur, Samsung, Philips

• Upstream Integration
  : Holds a 23.26% stake in Lianrui New Materials, securing core spherical silica powder resources
• Downstream Expansion
  : Its subsidiary Shengyi Electronics (63% stake) focuses on high-end PCB manufacturing
• Capacity Scale
  : 2024 copper clad laminate output reached 140 million square meters, representing a more than 200-fold increase compared to the company’s initial production volume

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According to Prismark data, the global market share gap between Shengyi Technology and Kingboard Laminates has narrowed from 3-4 percentage points in the early stage to approximately 1 percentage point, placing them essentially in the same competitive tier [15][16]. However, the two companies adopt distinctly different competitive strategies:

Comparison Dimension	Kingboard Laminates	Shengyi Technology	Gap Analysis
Global Market Share	~15%	~14%	Gap of ~1%
High-End Product Proportion	~18%	~25%+	Shengyi Leads
Technical Level	Follower	Peer	Shengyi Leads
Gross Profit Margin	~35%	~26%	Kingboard Leads
Industrial Chain Integration	Full Self-Supply	Core Material Control	Each Has Unique Advantages

Shengyi Technology should continue to consolidate its technological advantages in the high-frequency and high-speed segment [17][18]:

• Short-Term (2025-2026)
  : Accelerate mass production certification of M9 grade materials to meet the demands of 800G/1.6T switches and the Rubin platform
• Mid-Term (2026-2028)
  : Break through high-end packaging substrate technologies such as FC-BGA and FC-CSP
• Long-Term (2028-2030)
  : Deploy next-generation low dielectric loss materials (e.g., gas substrates, ceramic substrates, etc.)

R&D Investment Recommendation: Maintain an R&D expense ratio of over 6%, consistently exceeding the industry average.

The value of copper clad laminates for AI servers is 3-5 times that of traditional products; high-endization is the key to expanding market share [19][20]:

Product Grade	Dielectric Loss (Df)	Application Scenario	Unit Price (RMB/㎡)	Gross Profit Margin
M6	0.002	AI Servers	200-300	25-30%
M7	0.0015	GB200	400-600	30-35%
M8	0.001	GB300	800-1200	35-40%
M9	<0.001	Rubin Platform	1500+	40%+

: By 2027, increase the revenue share of high-end (M6 and above) products from the current 25% to over 40%.

Shengyi Technology is actively advancing its capacity layout [21][22]:

Project	Capacity	Investment	Progress
Jiangxi Shengyi Phase II	18 million ㎡ copper clad laminates + 34 million meters of prepregs	RMB 1.302 Billion	Scheduled for commissioning in June 2025
Jiangsu Shengyi Phase II Flexible Materials	Specialized Materials	~RMB 500 Million	Commenced construction in January 2025
Thailand Production Base	12 million ㎡ high-performance copper clad laminates	~RMB 2 Billion	Groundbreaking in December 2024

:

• Enable flexible conversion between high-end and ordinary product capacity
• Position the Thailand base to serve North American AI server customers
• Focus the Jiangxi base on mass production of high-speed materials

Kingboard’s full industry chain self-supply model provides valuable insights; Shengyi Technology should [23][24]:

• Upstream
  : Continue to strengthen strategic cooperation with Lianrui New Materials to ensure stable supply of spherical silica powder; explore strategic cooperation or investment and acquisition opportunities in the copper foil and resin sectors
• Downstream
  : Leverage the synergies of Shengyi Electronics in PCB manufacturing to bind leading AI customers such as NVIDIA and Huawei
• Horizontal
  : Monitor industry integration opportunities and acquire high-quality assets at the appropriate time

Amid escalating trade frictions and growing demand for supply chain security, global expansion has become imperative [25][26]:

• Thailand Base
  : Groundbreaking in December 2024, with products positioned as high-speed substrates for automotive electronics and AI servers, as well as packaging substrate materials for chip carriers
• North American Layout
  : Explore the feasibility of establishing technical service or production bases in North America
• European Market
  : Consolidate cooperative relationships with customers such as Nokia and Bosch

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1. Technological Innovation Capability
   : Sustain R&D investment to maintain leading advantages in M9 and higher-grade materials
2. Customer Certification Breakthrough
   : Deepen cooperation with AI chip manufacturers such as NVIDIA and AMD to seize the high ground in AI server materials
3. Capacity Release Rhythm
   : Capitalize on the AI demand boom to rapidly bring high-end capacity online
4. Cost Control Capability
   : Maintain a reasonable cost structure during the high-endization process

Risk Type	Risk Description	Response Measures
Copper Price Volatility	Raw materials account for over 40% of costs; copper price fluctuations impact gross profit margins	Implement hedging strategies and optimize procurement approaches
Technological Iteration	Peers are catching up rapidly, shortening the technological leadership window	Continue to increase R&D investment
Industry Cycles	Fluctuations in PCB industry prosperity affect market demand	Optimize customer structure to enhance anti-cyclical capabilities
Trade Frictions	Geopolitical factors impact overseas business operations	Accelerate global capacity layout
Intensified Competition	Taiwanese and Japanese manufacturers are increasing high-end segment investment	Consolidate technological advantages and secure leading customers

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Currently, the global market share gap between Shengyi Technology and Kingboard Laminates has narrowed to approximately 1 percentage point, placing them in the same competitive tier. From a competitive perspective [27][28]:

• Kingboard Laminates
  : Relies on full industry chain integration and cost advantages to maintain a leading position in the mid-to-low-end market, with stronger gross profit margin performance
• Shengyi Technology
  : Leverages technological leadership and high-end customer resources to gain an edge in high-growth tracks such as AI servers, with greater growth potential

It is projected that by 2027, Shengyi Technology will achieve the following targets:

• Global Market Share
  : Increase to 16%-17%, surpassing Kingboard Laminates to become the world’s top copper clad laminate supplier
• High-End Product Proportion
  : Rise to over 40%
• Revenue Scale
  : Reach RMB 35-40 Billion
• Net Profit
  : Reach RMB 5-6 Billion

The core strategy for Shengyi Technology to narrow the gap with Kingboard Laminates should focus on the following:

1. Technology-Centric
   : Sustain high R&D investment intensity to build technological barriers in M9 and higher-grade materials
2. AI-Focused
   : Deeply collaborate with AI chip manufacturers such as NVIDIA and AMD to secure a dominant position in AI server materials
3. Capacity-Driven
   : Accelerate the commissioning of the Jiangxi and Thailand bases to ensure sufficient high-end capacity supply
4. Collaborative Development
   : Leverage upstream and downstream industry chain synergies to create integrated “materials + PCB” solutions

Through the implementation of these strategic initiatives, Shengyi Technology is expected to surpass Kingboard Laminates in global market share within the next 2-3 years, emerging as a true global leader in the copper clad laminate industry.

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[0] Global Copper Clad Laminate Leader, Guohai Securities In-Depth Report
[1] CMBI Copper Clad Laminate Industry Research Report
[2] CMBI Global Copper Clad Laminate Market Analysis
[3] Guosen Securities In-Depth Report on Shengyi Technology
[4] Prismark Global Rigid Copper Clad Laminate Market Share Data
[5] Shengyi Technology Market Share Analysis, Wealth Account
[6] Tajian Research Copper Clad Laminate Competitive Landscape Analysis
[7] Guohai Securities Analysis of AI Server-Driven Copper Clad Laminate Demand
[8] Analysis of High-End Copper Clad Laminate Demand
[9] In-Depth Analysis of Kingboard Laminates, Xueqiu
[10] Analysis of Kingboard Laminates’ Integrated Industrial Layout
[11] Technological Benchmarking Analysis of Shengyi Technology’s High-Frequency Copper Clad Laminates
[12] Parameter Comparison of Shengyi Technology’s SCGA-500 Product
[13] Analysis of Shengyi Technology’s Customer Certification Status
[14] Analysis of Shengyi Technology’s High-End Customer Breakthroughs
[15] 2024 Global Copper Clad Laminate Market Share
[16] Global Rigid Copper Clad Laminate Competitive Landscape
[17] Analysis of Shengyi Technology’s R&D Investment
[18] Guojin Securities In-Depth Research on Shengyi Technology
[19] Electrical Performance Parameters and Grade Classification of Copper Clad Laminates
[20] Analysis of Technical Requirements for Copper Clad Laminates by AI Servers
[21] Progress of Shengyi Technology’s Capacity Expansion Projects
[22] Groundbreaking Information of Shengyi Technology’s Thailand Production Base
[23] Supply Chain Integration Between Shengyi Technology and Lianrui New Materials
[24] Analysis of Copper Clad Laminate Cost Structure
[25] PCB/CCL Capacity Layout Trends in Southeast Asia
[26] Kingboard Laminates’ Capacity Layout in Thailand
[27] Financial Comparison Between Shengyi Technology and Kingboard Laminates
[28] Alpha Analysis of the Copper Clad Laminate Industry