Panasonic Industry Announces an Investment of 7.5 Billion yen for a New MEGTRON Circuit Board Materials Production Line to Address Growing AI Server Demand

Tokyo, Japan – Panasonic Industry Co., Ltd. will invest approximately 7.5 billion yen into Panasonic Industrial Devices Materials (Guangzhou) Co., Ltd. (Guangzhou Factory), to add an additional production line specifically to manufacture MEGTRON multi-layer circuit board materials, which are widely used in high-speed network systems like AI servers.

Guangzhou Factory produces a wide range of products, from the MEGTRON6, an industry-pioneering Multi-layer Circuit Board Materials for Information and Communications Technology (ICT) infrastructure equipment, to the MEGTRON8, which supports high-speed transmission for AI servers. Going forward, it is positioned as an important production location for cutting-edge materials such as the MEGTRON series for next-generation AI servers that will enable even higher speed transmission.

This announcement follows the recently publicized Panasonic Industry plan to construct a new building and MEGTRON production line at an existing factory located in Ayutthaya, Thailand, which is intended to support printed circuit board (PCB) fabrication customers in Southeast Asia (announced on September 12, 2025). As a part of efforts to bolster global circuit board material production, this new production line in Guangzhou targets PCB fabrication customers in China, a significant market with strong long-term growth prospects. The new line is planned to commence initial manufacturing operations in April 2027, with mass production scheduled for later in the fiscal year.

Along with the evolution and growing adoption of generative AI, the market for ICT infrastructure, including AI servers, continues to expand and data processing volumes are forecasted to grow exponentially. This accelerated growth trend is driving demand for ICT infrastructure devices, such as servers, switches, and routers, which enable faster, higher-capacity communication and high-speed computing. The circuit boards used in these ICT infrastructure devices require low-transmission-loss* materials to enable signals to be transmitted more stably and efficiently.

Leveraging proprietary materials and processing technology, Panasonic Industry is bolstering global production for the MEGTRON series of circuit board materials which deliver industry leading low-transmission-loss performance. Panasonic Industry plans to double the total production capacity of MEGTRON products over the next five years contributing to the growth of the ICT infrastructure market, including AI servers, and the continued innovation of AI technology.

Overview of Panasonic Industrial Devices Materials (Guangzhou) Co., Ltd.

Guangzhou Factory, and the building where the new line will be installed (red box)

Factory & new line	Within the premises of Panasonic Industrial Devices Materials (Guangzhou) Co., Ltd.
Address	18 Lian Yun Rd. the East Section of Guangzhou Economic & Technological Development District, P.R. of China
Products manufactured	Circuit board materials
Gross floor area	Approx. 16,000 m² (including shared area with existing lines)
Scheduled commencement of operations	April 2027
Investment amount	Approx. 7.5 billion yen
Highlights	By enabling automation and reducing labor requirements through digital transformation in manufacturing processes, the new line will drive manufacturing efficiency to meet growing demand in China.

About Panasonic Industrial Devices Materials (Guangzhou) Co., Ltd.

Established: October 1997
Main businesses: Manufacturing and distributing circuit board materials

About MEGTRON Multi-layer Circuit Board Materials

image: MEGTRON Multi-layer Circuit Board Materials

MEGTRON is Panasonic Industry's flagship multi-layer circuit board materials brand. These products are designed to deliver among the lowest transmission losses in the market. These industry-leading materials enable high-speed, high-capacity transmission for diverse applications, including high-speed communication network devices such as servers, routers, supercomputers, and base stations, as well as automotive and aerospace.

* MEGTRON is a registered trademark of Panasonic Holdings Corporation.

Terms

* Transmission loss
The reduction in signal strength (signal degradation) that occurs when an electronic signal travels through traces on a circuit board, as part of the energy is converted into heat or other forms.
Designed to minimize signal degradation, low-transmission-loss circuit board materials help improve communication stability and reliability, reduce heat generation, and lower power consumption in ICT infrastructure devices.

＜Related links＞

[Press Release]Panasonic Industry will Double the Production Capacity of MEGTRON Multi-layer Circuit Board Materials Over the Next Five Years (Sep 12, 2025)
https://news.panasonic.com/global/press/en250912-3

Multi-layer circuit board materials for ICT infrastructure equipment “MEGTRON” series
https://industrial.panasonic.com/ww/products/pt/megtron

Find out more about Panasonic Industry's Electronic Materials

https://industrial.panasonic.com/ww/electronic-materials/business

About Panasonic Industry Co., Ltd.

https://www.panasonic.com/global/industry/

About Panasonic Industry Co., Ltd.

Panasonic Industry Co., Ltd. is an operating company within the Panasonic Group engaged in the development, manufacturing, and sales of electronic devices, materials, and related products. On a global basis, the company has about 39,200 employees and achieved net sales of 1,083.6 billion yen for the fiscal year ended March 31, 2025. The mission of the company states that “We will open the way to a better future and continue to contribute to an affluent society through a variety of device technologies.” Against the background of the explosion of data with the rise of the information-based society, greater demands for the environment and safety for the mobility society, and a labor shortage in manufacturing, the company will focus on areas where ongoing evolution is required and continue to provide customer value with the distinctive features of unique material and process technologies such as capacitors and electronic materials. Learn more about Panasonic Industry at https://www.panasonic.com/global/industry/.

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