Orders for domestically produced industrial mother machines, including AI server PCB equipment and five-axis machining centers, are extending into the second quarter of next year, signaling a significant surge in demand for advanced manufacturing capabilities in China.
Surging Demand for Advanced Manufacturing Equipment
The robust order book reflects a strong uptick in production for key components essential to the burgeoning AI sector and other high-tech industries. In a workshop at an industrial mother machine enterprise in Suzhou, Jiangsu, a six-axis PCB drilling machine, ready for shipment, underwent final testing. A company representative noted that the production of their main PCB equipment in the first half of this year saw a substantial increase compared to the same period last year. Specifically, the output of advanced series equipment more than doubled the entire previous year’s volume, with orders now fully booked until the second quarter of next year.
Data released in August by the China Machine Tool Industry Association supports this trend. In the first half of 2026, China’s machine tool industry achieved an operating revenue of 530.9 billion yuan, a year-on-year increase of 7.6%. Profitability also saw a significant boost, with total profits reaching 19.6 billion yuan, up 110.8% year-on-year.
AI’s Impact on PCB Drilling Equipment
The tight production schedules for PCB drilling machines are directly linked to the burgeoning AI infrastructure. The demand for high-layer count boards and high-density interconnect (HDI) boards required for AI servers has put pressure on traditional drilling equipment. As AI servers increase in layering, hole diameters shrink, and the aspect ratio of holes increases, conventional drilling machines are reaching their limits in terms of precision and efficiency.
In May, a disclosure from an investor relations activity by Hazet CNC revealed that its CCD six-axis independent mechanical drilling machine, equipped with 3D back-drilling and integrated drilling-measuring technology, has passed certification for next-generation AI server PCBs and is already in mass production at several leading enterprises. This technological advancement is crucial for meeting the stringent requirements of advanced AI hardware.
High-End Five-Axis Machining Centers in High Demand
The situation for high-end five-axis machining centers is even more critical, with production schedules extending further than those for PCB drilling machines. Kede Numerical Control reported a nearly 25% year-on-year growth in new orders in the first half of 2026. As of the end of June, their backlog of orders reached 266 million yuan, a 64.53% increase year-on-year. These orders are expected to be delivered gradually from the second half of 2026 through the first half of 2027.
Kede CNC’s five-axis machining centers boast a domestic production rate exceeding 90%, with core functional components having an autonomy rate of approximately 85%. Their self-developed GNC62 numerical control system has a domestic substitution rate of over 95% and has been delivered in batches for the processing of aero-engine integral blisks. This high degree of localization signifies China’s growing self-reliance in advanced manufacturing technologies.
Broad Strength in Metal Cutting Machine Tools
The positive trend is not limited to specialized equipment. In the more general field of metal cutting machine tools, Neway CNC reported its third-quarter revenue exceeded 1 billion yuan for the first time, reaching 1.032 billion yuan, a 30.35% increase year-on-year. As of the end of August, most of their machine tools were operating at full capacity. The simultaneous growth in contract liabilities and construction in progress reflects ongoing capacity expansion driven by the robust order pipeline.
This widespread demand across various segments of the industrial mother machine sector underscores a significant moment for China’s manufacturing industry, driven by both domestic technological advancements and the global demand for cutting-edge components, particularly those powering artificial intelligence.
