Panasonic Industry Announces an Investment of 7.5 Billion yen for a New MEGTRON Circuit Board Materials Production Line to Address Growing AI Server Demand

Tokyo, Japan - Panasonic Industry Co., Ltd. will invest approximately 7.5 billion yen into Panasonic Industrial Devices Materials (Guangzhou) Co., Ltd. (Guangzhou Factory), to add an additional production line specifically to manufacture MEGTRON multi-layer circuit board materials, which are widely used in high-speed network systems like AI servers.

Guangzhou Factory produces a wide range of products, from the MEGTRON6, an industry-pioneering Multi-layer Circuit Board Materials for Information and Communications Technology (ICT) infrastructure equipment, to the MEGTRON8, which supports high-speed transmission for AI servers. Going forward, it is positioned as an important production location for cutting-edge materials such as the MEGTRON series for next-generation AI servers that will enable even higher speed transmission.

This announcement follows the recently publicized Panasonic Industry plan to construct a new building and MEGTRON production line at an existing factory located in Ayutthaya, Thailand, which is intended to support printed circuit board (PCB) fabrication customers in Southeast Asia (announced on September 12, 2025). As a part of efforts to bolster global circuit board material production, this new production line in Guangzhou targets PCB fabrication customers in China, a significant market with strong long-term growth prospects. The new line is planned to commence initial manufacturing operations in April 2027, with mass production scheduled for later in the fiscal year.

Along with the evolution and growing adoption of generative AI, the market for ICT infrastructure, including AI servers, continues to expand and data processing volumes are forecasted to grow exponentially. This accelerated growth trend is driving demand for ICT infrastructure devices, such as servers, switches, and routers, which enable faster, higher-capacity communication and high-speed computing. The circuit boards used in these ICT infrastructure devices require low-transmission-loss* materials to enable signals to be transmitted more stably and efficiently.

Leveraging proprietary materials and processing technology, Panasonic Industry is bolstering global production for the MEGTRON series of circuit board materials which deliver industry leading low-transmission-loss performance. Panasonic Industry plans to double the total production capacity of MEGTRON products over the next five years contributing to the growth of the ICT infrastructure market, including AI servers, and the continued innovation of AI technology.