Huanyu PCB: Say Goodbye to "Low-End Involution" and Embrace "High-End Value" to Weather the Material Price Storm

Dear Valued Partners and Customers,

We hope this message finds you well.

First and foremost, we would like to express our sincere gratitude for the continued trust and support you have placed in Huanyu PCB over the years. It is this very partnership that has enabled us to steadily advance in an increasingly competitive industry.

Recently, the entire electronics supply chain has been engulfed by a "price storm" triggered by the explosive demand from AI computing and severe supply shortages of upstream raw materials. Prices for key materials—including copper foil, fiberglass fabric, and resins—have been skyrocketing with no signs of abating. Entering 2026, CCL (Copper Clad Laminate) suppliers have already implemented multiple rounds of price hikes, with cumulative increases exceeding 50% year-to-date. For some high-end specifications, prices are changing daily, and supply is becoming extremely tight.

Confronted with this unprecedented cost shock, the PCB industry as a whole is undergoing a harsh survival test.

I. A Wake-Up Call: There Is No More "Comfort Zone"

We fully understand that every customer is under tremendous cost pressure in the current environment. However, we must face a stark reality: amid surging material costs and persistent "hard gaps" in supply, PCB manufacturers can no longer serve as the cost buffer for the entire industry chain.

For too long, low-value-added, conventional PCB orders have yielded razor-thin margins, sustained only by economies of scale. Today, however, CCL suppliers are not only imposing drastic price increases but also allocating capacity through quota systems and extended lead times. As a result, the standard materials we rely on for ordinary boards—such as 7628 fiberglass fabric and conventional copper foil—have not only doubled in price but are also simply unavailable in sufficient quantities, even when we are willing to pay.

Continuing to accept a large volume of low-end, low-price, and low-margin orders is no longer a viable partnership—it is a sustained drain on our resources. For every low-end board we produce, we are incurring losses. Worse still, we are squandering our valuable, finite capacity on products that generate no future competitiveness.

II. Our Decision: A Strategic Pivot to Phase Out Inefficient Capacity

As Charles Darwin once observed, "It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change."

Faced with this industry-wide reshuffle, Huanyu PCB's management team has deliberated extensively and made a resolute decision:

We will proactively undertake a strategic contraction and formally launch a "Customer Structure Optimization" and "Product Portfolio Upgrade" initiative.

Over the next quarter, Huanyu PCB will gradually discontinue accepting and proactively phase out a portion of low-value-added, technologically undemanding PCB orders. This is not an easy choice, but it is a responsible one—responsible to our own survival, and responsible to those valued customers who are willing to grow alongside us by building lasting technological barriers.

We refuse to deliver substandard quality or delayed products to any customer. By eliminating inefficient capacity, we can reallocate all our premium resources—including our limited material inventory, critical manufacturing equipment (drilling and lamination presses), and our most experienced engineering teams—to focus entirely on high-end PCB segments where Huanyu can truly differentiate itself.

III. Looking Ahead: Focusing on High-Value Segments and Serving True Partners

Our resolve is grounded in a clear understanding of industry trends.

AI computing, high-speed switches, new energy vehicle power systems—these future-oriented sectors demand PCBs with superior performance (high-frequency, high-speed, high-layer-count, and high-density interconnect). In these areas, customers are willing to pay a fair premium for reliable delivery and proven quality, because the integrity of the materials and PCBs directly determines the success or failure of their end products.

Therefore, Huanyu PCB's future business focus will pivot entirely toward:

1. High-End Data Communications (high-frequency, high-speed boards for servers, switches, and optical modules)

2. Automotive Electronics (high-reliability boards for ADAS and electric powertrain systems)

3. Industrial Control and Medical Equipment (specialty boards requiring high precision and long-term durability)

We firmly believe that, under the market's immutable law of survival of the fittest, only those companies that dare to ascend the value chain and refuse to engage in a race to the bottom will ultimately weather the cycle and emerge alongside their partners at the forefront of the next era.

IV. A Message to Our Esteemed Customers

To those customers affected by this strategic adjustment, we offer our sincere apologies and ask for your understanding. This is not an end, but a necessary step toward our ability to better serve your future high-end needs with greater capability.

To our partners who share our strategic direction and our commitment to technological innovation and quality excellence, Huanyu PCB makes this solemn pledge: We will channel all our resources to deliver shorter lead times, superior quality, and more competitive high-end product solutions.

Winter has arrived, and the strong will prevail. Huanyu PCB chooses to face the storm head-on and do what is difficult yet right. We are confident that when the tide recedes, only the true alliances built on mutual growth will remain.

Should you have any questions regarding this strategic realignment, or if you wish to learn more about Huanyu PCB's high-end product capabilities, please do not hesitate to reach out to your dedicated account manager. We welcome open dialogue and are committed to co-creating a prosperous future together.

Sincerely,

Huanyu PCB Management Team
June 25, 2026