(Yicai) July 28 -- Shares of Dongshan Precision Manufacturing rose after the Chinese electronics manufacturer said it will invest no more than USD1 billion to build a high-end printed circuit board factory to better meet the needs of emerging industries and lift its products' added value.

Dongshan Precision [SHE: 002384] closed up 2.6 percent to CNY54.43 (USD7.59) in Shenzhen today, after earlier soaring by as much as 5.3 percent.

Dongshan Precision subsidiary Multek Group Hong Kong will invest in and oversee the project, the Suzhou-based parent firm announced late on July 25, without disclosing further details such as the annual production capacity, construction schedule, and location.

The project aims to meet the medium‑to‑long‑term demand for high-end PCBs for high-performance computing servers, artificial intelligence servers, and others, Dongshan Precision said, adding that Multek's production capacity has struggled to meet such demand, necessitating a rapid increase in output to fill the supply gap.

Multek has five high-end PCB plants in Zhuhai, China's southern Guangdong province. Dongshan Precision set up the unit after acquiring the PCB business of Flex for USD293 million in 2018.

High-end PCBs have high-density interconnection and high-speed signal transmission, making them products with higher added value, Dongshan Precisio noted.

Dongshan Precisio reported its operating revenue topped CNY36.8 billion (USD5.1 billion) last year, with its PCB business accounting for 67 percent of the total. Its PCBs are mainly applied in the consumer electronics sector.

However, Its current PCB product lineups are mainly applied in the consumer electronics sector.

Editor: Martin Kadiev