[News] Shenzhen Adds Two RMB 10-Billion Semiconductor Projects Targeting AI Servers and 12-Inch Wafers

Two leading players in China’s electronics supply chain have recently disclosed major investment plans in Shenzhen, with a combined planned investment exceeding CNY 20 billion. The investments target two high-growth sectors: AI server printed circuit boards (PCBs) and large-diameter semiconductor silicon wafers.

Avary Holding to Invest RMB 10 Billion in High-End SLP and FPC Smart Manufacturing Base

On July 23, Avary Holding announced a CNY 10 billion plan to build an AI high-end substrate-like PCB (SLP) and flexible printed circuit (FPC) smart manufacturing base at its Third Campus in Shenzhen. Located in Yanluo Street, Bao’an District, the land was acquired on May 25, 2026. Construction is scheduled to begin in July 2026, with full completion expected by 2033. Funding will be sourced from self-owned and self-raised capital.

Avary Holding stated that this investment is a strategic step to capitalize on the rapid expansion of AI technology and accelerate its layout in high-end PCB manufacturing. The initiative aims to complete the company’s strategic footprint across the AI “cloud, pipe, and edge” ecosystem.

Once operational, the project will expand operating scale, drive product line technological upgrades and iterations, and enhance overall profitability.

This announcement follows intensive capital market moves by the company. In early July, Avary Holding unveiled a private placement plan of up to CNY 9.6 billion directed toward the “Qingding AI Server and High-Speed Optical Module High-Density Interconnect (HDI) Board Project”.

That project will add approximately 655,600 square meters of annual high-end HDI capacity, reinforcing its technology and capacity advantages in AI servers and high-speed optical transceivers.

As the Shenzhen-listed platform of Taiwan-based Zhen Ding Technology Group, Avary Holding established an early presence in modified Semi-Additive Process (mSAP) technology and SLP products. It currently possesses mass-production capability for HDI boards exceeding six layers.

• Optical Transceivers: Its SLP products have entered mass production and volume shipment for the 800G/1.6T high-end market, while 3.2T products have entered the R&D stage.
• AI Servers: Its high-end HDI products have secured qualification and certification from major cloud service providers (CSPs).

TCL Zhonghuan Commits Nearly RMB 12 Billion to 12-Inch Silicon Wafers, Targeting 700k Monthly Capacity

TCL Zhonghuan recently announced an investment of approximately CNY 11.96 billion to construct the “Shenzhen Large-Diameter Semiconductor Silicon Wafer Project for Integrated Circuits”. The project will be executed by Shenzhen Zhonghuan Advanced, a subsidiary of its controlled entity Zhonghuan Advanced.

Self-owned capital will cover no more than 40% of the project company’s registered capital, with the remaining funds raised via equity financing and bank loans.

Located in Guangming District, Shenzhen, the facility covers approximately 160 mu (approx. 10.7 hectares) with an overall construction timeline of 60 months. The core construction phase will span about 18 months, covering everything from foundation piling to first-phase equipment installation, process debugging, and trial production.

• Planned Capacity: 700,000 wafers per month (combining 12-inch polished, epitaxial, and test wafers).
• Market Focus: High-end, large-diameter, and high value-added 12-inch silicon wafers to address domestic supply constraints.

TCL Zhonghuan noted that the investment aims to seize growth opportunities in the semiconductor market and ensure long-term sustainable development. Once operational, the project will bridge the supply gap for high-end semiconductor materials in South China, establishing a coordinated nationwide footprint across northern and southern China while enhancing the company’s scale in large-diameter silicon wafer supply.

Industry Takeaway

The simultaneous commitment of both industry leaders to Shenzhen highlights the accelerating cluster effect of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) in advanced electronics and semiconductors. It further confirms that the dual tailwinds of AI compute demand and semiconductor localization are driving robust upstream infrastructure investments across the hardware supply chain.

(Photo credit: FREEPIK)