Shengyi Electronics said its wholly owned subsidiary Ji'an Shengyi Electronics will invest about 2.257 billion yuan in a high-speed interconnect circuit board manufacturing project named Chip-Smart Connectivity, focused on AI servers and automotive electronics.

The project has a 36-month construction period and is expected to start on September 28, 2026. When completed, it will add 445,900 square meters of annual capacity for high-end HDI boards of four or more layers.

About 2.158 billion yuan of the total investment is new spending; the remainder has already been used for plant construction.

Shengyi said the project aims to free up more capacity for four-layer-and-above high-end HDI products.

The project still requires government filing and approvals for environmental and energy assessments.

Jiemian News noted the expansion comes as Shengyi Electronics is pursuing other capacity projects, including the Dongguan AI computing HDI base, which began construction in the first half of the year.

In the first half of 2026, Shengyi Electronics reported revenue of 5.784 billion yuan, up 53.46% from a year earlier, and net profit attributable to shareholders of 1.111 billion yuan, up 109.36%, with a gross margin of 34.31%.

As of June 30, the company carried 407 million yuan in cash, 3.725 billion yuan in accounts receivable, 2.29 billion yuan in inventory, and 4.012 billion yuan in notes and accounts payable, with 2.142 billion yuan in short-term borrowings. The debt-to-asset ratio rose to 53.76% from 45% a year earlier.

The company warned the project could be delayed, changed, suspended or terminated if financing falls short or if market demand, product prices or the overall business rollout deviates materially from expectations.