Dingtai High-Tech
Global #1 in PCB micro-drill sales, focused on R&D, production, and sales of micro drill bits, milling cutters, and precision cutting tools, widely used in AI server HDI boards, IC substrates, automotive electronics, and other fields.
Over 20% global market share in PCB micro-drills, ranking first. The core barrier lies in the in-house development of the underlying cemented carbide (tungsten-cobalt alloy) material formula, as well as micron-level precision grinding processes for cutting tools, forming a full-chain closed loop from powder metallurgy to finished tools.
Company Overview
Founded in 1997 and listed on the ChiNext board of the Shenzhen Stock Exchange in 2022, Dingtai High-Tech is headquartered in Dongguan, Guangdong. The company is the absolute leader in precision tools such as micro-drills and milling cutters for PCB and IC substrate processing, serving as an "invisible but indispensable" core consumables supplier in the AI computing hardware supply chain.
In the manufacturing of AI server motherboards and advanced packaging substrates for giants like NVIDIA, Intel, and Apple, Dingtai's drill bits are the "industrial MSG" consumed in large quantities every day — without them, the countless layers of micro-vias on HDI boards cannot be drilled, and GPUs and HBM memory cannot achieve electrical interconnection.
Core Business
PCB Micro-Drill Bits | Core Pillar (~65% of Revenue)
Used to drill micro-vias in PCBs and IC substrates, enabling electrical connection between layers of multilayer circuit boards. The drill bit diameter has broken through 0.01mm (10 microns), equivalent to one-seventh of a human hair's diameter. These are high-frequency consumables — each bit needs to be replaced after drilling approximately 3,000–5,000 holes. With the high-density drilling demand of AI server motherboards, the consumption rate further accelerates.
PCB Milling Cutters | ~20% of Revenue
Used for profile cutting and contour finishing in PCB routing/forming. Leveraging the company's material expertise in micro-tools, both tool life and machining precision reach top international standards.
Automated Drilling Equipment | ~10% of Revenue
The company doesn't just sell the "blades" — it also sells the "tool holder." It manufactures key components for CNC drilling machines and automated inspection equipment, deeply embedding itself in downstream PCB plants' production line upgrades.
Core Technical Moat
Dingtai's moat does not come from "making it big," but from "making it small, making it precise, and making it consistent."
Cemented Carbide Material Formula: The performance of a micro-drill depends on the grain size of the tungsten-cobalt alloy and the cobalt content ratio. Dingtai has developed its own ultra-fine grain cemented carbide formula, achieving an ultimate balance between wear resistance, toughness, and transverse rupture strength.
Precision Grinding Process: The cutting edge of a micro-drill can only be seen under a microscope. The company has developed proprietary grinding programs and online inspection systems for CNC tool grinders, controlling batch-to-batch consistency within micron-level tolerances.
Full-Chain Closed Loop: From carbide powder ratio → press forming → sintering → precision grinding → PVD coating → quality inspection, all process steps are under independent control.
Market Landscape
| Dimension | Data |
|---|---|
| Global Market Share | 20%–22%, No. 1 globally |
| Main Competitors | Union Tool (Japan), Jinzhou Precision |
| Downstream Customers | Avary Holding, Zhen Ding Technology, Shennan Circuits, WUS Printed Circuit, etc. |
| End Users | NVIDIA, Intel, Apple, Huawei (indirect supply) |
Financials & Growth
| Metric | Description |
|---|---|
| Revenue (2024) | Approximately RMB 1.5 billion |
| Gross Margin | Approximately 38%–42% |
| Core Growth Logic | AI server PCB layer count increases → drilling demand per board multiplies; advanced packaging IC substrate capacity expansion → high-end micro-drill demand grows |
| Capacity Expansion | Dongguan HQ expansion + Thailand base construction |
Risks & Summary
Risks: The downstream PCB industry is cyclical; raw material (tungsten carbide, cobalt powder) prices are affected by international market fluctuations; Japan's Union Tool still holds strong technical strength in high-end packaging substrate drill bits.
Summary: Dingtai is a typical "pick-and-shovel" play in the AI computing supply chain. It does not directly compete with TSMC or NVIDIA, but every AI server motherboard and every CoWoS packaging substrate relies on its drill bits for manufacturing. As AI hardware investment continues to expand, this "hidden champion" offers high certainty.