China's Victory Giant Technology (300476.SZ), a key printed circuit board (PCB) supplier to NVIDIA, is accelerating its international expansion with a new factory in Ayutthaya, Thailand, expected to begin production by late 2025. At the same time, the company has filed for a Hong Kong IPO seeking to raise up to $1 billion, underscoring its ambitions to strengthen its position in the global AI supply chain.

Victory Giant's Thai facility—its second in the country after acquiring assets from Taiwan's APCB Group—is part of a wave of nearly 60 Chinese and Taiwanese PCB makers that have invested in Thailand in recent years. Industry leaders such as Zhen Ding Technology, Unimicron, and Gold Circuit Electronics have also established operations, aiming to use Thailand as a "PCB hub" beyond China and Taiwan.

The surge is driven by soaring AI demand and geopolitical pressures. PCB makers supplying AI servers, data centers, and advanced electronics are diversifying production bases to mitigate risks tied to U.S.-China trade tensions and potential instability in the Taiwan Strait. Thailand's Board of Investment has further fueled momentum by offering tax incentives and regulatory support.

According to Taiwan's Industry, Science and Technology International Strategy Center, Thailand's PCB output is projected to climb from $3.5 billion in 2024 to $5.62 billion by 2030, a compound annual growth rate of 7.6%, outpacing the global average.

Still, challenges remain. Executives cite shortages of skilled PCB engineers, cultural gaps between local workers and foreign management, and higher labor costs—estimated at three times those in China. Most advanced materials and equipment also need to be imported, limiting the maturity of Thailand's ecosystem.

Analysts say that if Thailand can address workforce shortages and build a more complete industrial cluster, it could emerge as the world's second-largest PCB hub after China. For Victory Giant, its Thai investment and planned IPO highlight how the AI boom is reshaping supply chains and driving fresh capital into the PCB sector.