I. Industry

Proactive fiscal policy to continue in H2, incremental policies to be rolled out as appropriate

On August 21, the State Council Information Office held a press conference. The Ministry of Finance announced that the 2026 fiscal expenditure budget exceeded 30 trillion yuan for the first time, with 11.89 trillion yuan in new government bonds. In the second half of the year, over 2 trillion yuan in local government special bonds and ultra-long-term special treasury bonds remain to be issued and utilized. The Ministry of Finance will accelerate fund deployment, step up efforts to expand domestic demand, and promptly develop practical and effective incremental policies based on economic performance. (China Government Network)

Digital industry revenue up 13.6%, profit up 19.3% in H1

On August 26, the Ministry of Industry and Information Technology released the digital industry performance for the first half of 2026: revenue reached 20.71 trillion yuan, up 13.6% year-on-year; total profit hit 1.79 trillion yuan, up 19.3% year-on-year, with a revenue profit margin of 8.6%. The top ten provinces and municipalities by revenue accounted for 17.21 trillion yuan combined, or 83.1% of the national total, indicating a further strengthening of industrial agglomeration. (Ministry of Industry and Information Technology)

US Q2 GDP annualized growth at 1.5%, core PCE up 3.3% YoY

On August 26, the Bureau of Economic Analysis of the US Department of Commerce released its second estimate for Q2 GDP: real GDP grew at an annual rate of 1.5%, down from 2.1% in Q1; real gross domestic income rose 2.2%. The July PCE price index, released the same day, rose 3.7% year-on-year, while core PCE increased 3.3% year-on-year, indicating an economic slowdown with lingering inflationary pressure. (Bureau of Economic Analysis, US Department of Commerce)

II. Market

China's humanoid robot shipments exceed 40,000 units in H1, global share rises to 97%

On August 20, the 2026 Humanoid Robot Industry Development Report was released at the World Robot Conference. The report shows that China's humanoid robot shipments exceeded 40,000 units in the first half of 2026, with its global share rising to 97%. A complete industrial chain—from key chips and core components to finished machines—has taken shape domestically, and the industry is accelerating from small-batch trials to routine deployment and large-scale application. (CCTV)

NEV passenger car retail sales at 614,000 units in first 23 days of August, penetration rate 64.3%

On August 26, the China Passenger Car Association (CPCA) released data showing that nationwide new energy passenger car retail sales reached 614,000 units from August 1–23, down 12% year-on-year and 2% month-on-month, with a NEV retail penetration rate of 64.3%. During the same period, manufacturers' NEV wholesale sales reached 714,000 units, up 5% year-on-year and 4% month-on-month, with a wholesale penetration rate of 70.5%. Terminal retail remains under pressure while manufacturer wholesale maintains growth. (CPCA)

Rising memory prices push up AI infrastructure costs, may account for 68% of CSP capex by 2027

On August 25, TrendForce reported that global major CSPs are expected to increase capital expenditures by 98% in 2026 and a further 50% in 2027 to accelerate AI infrastructure buildout. Driven by rising server memory and enterprise SSD prices along with expanding procurement demand, the share of DRAM and NAND Flash in major CSP capital expenditures is projected to rise from 47% in 2026 to 68% in 2027. (TrendForce)

III. Enterprises

Founder Technology advances coordinated capacity projects in Zhuhai, Chongqing, and Thailand

On August 20, Founder Technology's semi-annual report revealed that the main structure of its Zhuhai AI and computing high-density interconnect PCB base was topped out in May; the Chongqing AI expansion project is simultaneously accelerating construction; and the Thailand base has entered the capacity ramp-up phase. The company's PCBs for 800G and 1.6T optical modules have entered mass production, with the three locations working in coordination to enhance high-end product delivery capability. (Founder Technology Announcement)

Kinwong Electronic plans 4.388 billion yuan investment in ultra-high-layer PCB project

On August 22, Kinwong Electronic announced that it plans to convert the original key-process capacity reinforcement project at its Zhuhai Jinwan base into an ultra-high-layer PCB intelligent manufacturing project, with an estimated total investment of 4.388 billion yuan. The project will construct new factory buildings on reserved land and introduce advanced equipment to expand capacity for high-end, high-speed, ultra-high-layer PCBs, primarily serving AI computing, high-speed network communications, and automotive intelligent driving. The matter remains subject to shareholder meeting approval. (Kinwong Electronic Announcement)

Hongchang Electronic's 80,000-ton electronic-grade epoxy resin project officially commences production

On August 22, Hongchang Electronic's semi-annual report disclosed that its Zhuhai Hongchang 80,000-ton-per-year electronic-grade functional epoxy resin project has completed trial production and entered formal production on August 21. The company is simultaneously advancing a semiconductor-grade functional resin film project with a total investment of approximately 60 million yuan, planning an annual output of 1.728 million square meters of build-up film for ABF substrates. Its already-completed functional high-end copper-clad laminate project is gradually releasing capacity. (Hongchang Electronic Announcement)

China Tungsten and Hightech accelerates PCB micro-drill and drill rod expansion projects

On August 25, China Tungsten and Hightech disclosed that its subsidiary Jinzhou Company has invested in six expansion projects since the second half of 2025, expected to add nearly 800 million micro-drill units of capacity, of which the 140-million-unit and 130-million-unit projects reached full production in March and June this year, respectively. Zhuzhou Cemented Carbide's 30-million-unit PCB drill rod technical renovation project is scheduled to reach full production in the second half of the year, enhancing in-house tool rod supply and domestic substitution capability. (China Tungsten and Hightech Announcement)

Minbao Optoelectronic consolidates Xiazhi Precision, continues expanding high-end drill needle capacity

On August 25, Minbao Optoelectronic disclosed its first consolidated semi-annual report following the acquisition of a 51% stake in Xiazhi Precision. Xiazhi Precision achieved revenue of 104 million yuan and net profit attributable to parent of 16.4 million yuan in May–June. Its ultra-small-diameter drill needles (below 0.2 mm) and high-aspect-ratio drill needles (above 50× diameter) are already in mass supply, compatible with M9 laminate materials. Monthly capacity has increased from 15 million units in April to 20 million units, and is expected to exceed 40 million units by year-end. (Minbao Optoelectronic Announcement)

WUS Printed Circuit optimizes implementation plan for 5.5 billion yuan high-end PCB project

On August 26, WUS Printed Circuit announced adjustments to the implementation plan for its new PCB manufacturing project and supporting facilities with a total investment of approximately 5.5 billion yuan: due to changes in the delivery schedule of the original Phase II land, Phase II construction content will be transferred to Phase III land, and the self-built industrial wastewater treatment plant will be cancelled, while the total project investment remains unchanged. The project targets high-layer-count, high-frequency/high-speed, high-density interconnect, and high-current-carrying PCBs, primarily meeting demand from AI servers and high-speed network switches. (WUS Printed Circuit Announcement)

JLC releases first post-IPO semi-annual report, PCB and PCBA businesses grow in tandem

On August 26, JLC released its first semi-annual report since listing. In the first half, electronic industry chain business revenue reached 6.556 billion yuan, up 51.61% year-on-year; among this, PCB business revenue was 2.474 billion yuan, up 35.90%, and electronic assembly business revenue was 1.202 billion yuan, up 52.17%. The penetration rate of paying PCBA users rose from 16.83% in the same period last year to 18.60%, driving PCB revenue up by nearly 300 million yuan. (JLC Announcement)