(Yicai) Sept. 9 -- Shares of Jiangsu Allfavor Intelligent Circuits Technology rose after the Chinese firm said it will invest CNY3 billion (USD447.1 million) to expand its production capacity of high-end PCBs for cutting-edge sectors, such as artificial intelligence computing equipment and robots.

Allfavor [SHE: 300964] closed 4 percent up at CNY65.20 (USD9.72) today, after earlier gaining as much as 16.4 percent. The ChiNext Index, the benchmark for Shenzhen market’s growth enterprise board, closed 0.1 percent lower today.

Allfavor will spend CNY2 billion to build a plant in China’s eastern Nanjing with an annual output of 1.5 million square meters of high-layer and high-density interconnected PCBs for AI computing equipment, such as servers and switches, the company announced yesterday. Construction will last 12 months, and full capacity will be achieved within 48 months after production begins.

The project will help the firm capture growth opportunities brought by the rapid expansion of the AI computing market, optimize its industrial layout, and boost its capability for new product research and development, Nanjing-based Allfavor noted, adding that it is expected to generate an annual output value of CNY2 billion, with annual tax payments of no less than CNY60 million (USD8.9 million).

The company also plans to invest CNY1 billion to build the second expansion phase of its PCB manufacturing base in China’s southern Zhuhai, which will produce high-layer, HDI, and any-layer HDI PCBs, Allfavor announced yesterday. However, it did not disclose the project's planned annual capacity and construction timeline.

Products from Phase II of the Zhuhai manufacturing base can be applied across multiple high-end fields, including AI computing, intelligent computing centers, communications equipment, automotive electronics, new energy, power electronics, and robots, Allfavor said.

This project will effectively lift the firm’s production capacity for high-end interconnect circuit boards and improve response speed and service quality for clients in South China, Allfavor noted.

Editor: Futura Costaglione