Everbright Securities has released a research report indicating that global demand for AI computing power continues to grow at a high speed. Concurrently, the need for low latency in AI inference is intensifying, which is expected to accelerate the adoption of heterogeneous architectures combining GPUs and LPUs. This industry upcycle is anticipated to extend into the PCB equipment sector, potentially leading to a scenario of supply shortages and price increases for PCB drill bits. The report recommends focusing on equipment manufacturers involved in core PCB manufacturing processes, including: 1) high-precision drilling and exposure stages; 2) high-precision PCB assembly equipment; 3) high-end PCB drill bits; and 4) advanced plating processes. The main points from Everbright Securities are as follows.
NVIDIA's Orthogonal Backplane Solution and Application Plan In March 2025, NVIDIA unveiled its product roadmap at the GTC conference. The company plans to introduce an orthogonal backplane solution in its Rubin Ultra NVL576 architecture, slated for mass production in the second half of 2027, to replace traditional copper cable connections. This application is still undergoing validation. NVIDIA's orthogonal backplane architecture utilizes high-performance PCBs to enable vertical direct connections between compute boards and switch boards—arranged orthogonally at a 90-degree angle in space. Compared to traditional copper cables, this technology demonstrates superior engineering characteristics in terms of signal speed, wiring density, and thermal efficiency.
Requirements and Material Solutions for NVIDIA's Orthogonal Backplane PCB 1) PCB Substrate Requirements: The board is expected to have 78 layers, formed by laminating three PCBs each with over 26 layers. The required trace width/spacing is ≤25μm, significantly lower than the standard ~50μm for conventional PCBs. The dielectric constant (Dk) must be ≤3.0, dielectric loss (Df) ≤0.0007, and coefficient of thermal expansion (CTE) ≤7 ppm/°C. 2) Material Solution: The Rubin Ultra orthogonal backplane is proposed to use M9-grade copper-clad laminate. The specific M9 composite formula is still being finalized. Through gradual validation within the supply chain, the "78-layer M9 resin + HVLP3/4 copper foil + Q-cloth" combination is currently the primary promoted solution. A hybrid stacking solution using M9 and PTFE materials may also be adopted later. Q-cloth (quartz fiber cloth) has a dielectric constant (Dk) of only 2.2-2.3, far lower than traditional E-glass cloth (Dk≈4.8-4.9) or second-generation low-Dk cloth (Dk≈4.2-4.3). Its dielectric loss (Df) is as low as 0.0005-0.0007, merely one-tenth that of traditional glass cloth, and its CTE is a low 0.5 ppm/°C, making it highly suitable for the orthogonal backplane's performance demands. 3) High Production Process Requirements: The manufacturing of orthogonal backplanes involves demanding processes: ① High-precision lamination and pressing using laser positioning for accurate alignment of over 30 layers, with pressing temperature controlled at 160±5°C and pressure stabilized at 20-25 kg/cm² to prevent layer misalignment. ② Microvia drilling technology requiring holes smaller than 0.1mm in diameter, often involving laser drilling followed by plasma deburring. ③ High-speed differential pair routing with spacing controlled at 2.5 times the trace width to effectively avoid crosstalk. ④ Comprehensive testing post-production, including ICT, flying probe tests, and signal integrity analysis, with some tests requiring impedance deviation to be kept within ±5%.
Impact of M9 Material with Q-Cloth on PCB Drill Bit Processing 1) Significant Increase in Drill Bit Consumption: The hardness of M9 material incorporating Q-cloth is notably higher, causing the lifespan of traditional tungsten-cobalt alloy drill bits to plummet—from approximately 12,000 holes per bit when processing FR-4 material to only about 200-300 holes. Furthermore, drill bits are highly prone to deflection or breakage during deep-hole operations. To prevent breakage, drilling machines must adopt a "peck drilling" mode, commonly involving 3-4 stages. These factors will significantly increase the consumption of PCB drill bits. Consequently, PCB manufacturers are increasingly trying drill bits with coatings like TAC to extend lifespan or considering harder diamond drill bits, although these from leading companies are still in the commercial validation stage. 2) Increased Demand for High Aspect Ratio Drill Bits: The thickness of orthogonal backplanes can reach 1-2 cm, requiring drill bits with aspect ratios potentially exceeding 100:1. When the aspect ratio surpasses 50:1, production difficulty increases sharply, leading to significantly lower production efficiency, impacting supply speed, and raising the unit price of drill bits. 3) Demanding Back-Drilling Process Increases Demand: To maintain signal integrity in orthogonal backplane PCBs, precise back-drilling is necessary to remove unused portions of vias. This additional production step will further boost demand for PCB drill bits. Back-drilling bits typically require flatter point angles to ensure a clean cut surface and must be used with CCD-controlled high-precision depth drilling machines, maintaining depth tolerance within ±50μm.
The report concludes with risk warnings, including intensified industry competition, technological iteration, industry relocation, and potential shortfalls in end-market demand.