Panasonic plans to invest 7.5 billion yen to establish a new Megtron circuit board material production line in China to meet AI server demand

On the afternoon of the recent day, Panasonic Industries announced it will inject an additional investment of approximately 7.5 billion yen (equivalent to about 329 million yuan at current exchange rates) into Panasonic Industrial Components Materials (Guangzhou) Co., Ltd. to establish a new Megtron multilayer circuit board material production line.

It is understood that such materials are widely used in high-speed network systems such as AI servers.

The Guangzhou plant currently manufactures products ranging from Megtron6 to Megtron8. Among these, Megtron6 targets information and communications technology (ICT) infrastructure equipment as one of the industry's earliest high-performance multilayer circuit board materials; Megtron8 meets the high-speed data transmission demands required by AI servers. Moving forward, the Guangzhou facility will assume a more critical role as a key production base for next-generation AI server materials.

The new Guangzhou production line will primarily serve Chinese PCB customers. Panasonic noted in its press release that China's market boasts significant scale and long-term growth potential. Trial production is scheduled to commence in April 2027, with mass production expected within the same fiscal year.

As generative AI continues to evolve and accelerate its adoption, demand for ICT infrastructure like AI servers is expanding, with data processing volumes projected to grow exponentially. This trend is driving increased demand for servers, switches, and routers while also imposing higher requirements on circuit board materials—specifically, lower transmission losses to ensure stable and efficient signal transmission.

Panasonic Industries stated that it will leverage proprietary materials and processing technologies to continuously expand global production capacity for its Megtron series circuit board materials. Over the next five years, the company plans to double the total production capacity of Megtron series products from current levels. This expansion aims to support the growth of the ICT infrastructure market, including AI servers, and drive the ongoing advancement of AI technology.