Taiwan PCB industry output projected to exceed 1 trillion TWD due to AI demand

The Taiwan PCB Association (TPCA) reports that Taiwan's printed circuit board (PCB) industry output is expected to exceed 1 trillion TWD for the first time this year, reaching an estimated 1.1365 trillion TWD, a 24.2% year-on-year increase.

Driven by surging demand for AI servers, high-performance computing (HPC), and high-speed networking, multi-layer boards saw a significant production value increase of 47.6% in the second quarter. In contrast, the flexible PCB market remains sluggish due to weak demand in smartphones and laptops, growing only 1.3%.

The AI boom has triggered a supply shortage across the entire value chain. Demand for high-end materials, including Low CTE glass fabric, Low Dk2, and HVLP4 copper foil, is outpacing supply. Shortages have also spread to copper-clad laminates (CCL), ABF substrates, and manufacturing equipment. While companies are aggressively expanding capacity, new production is not expected to come online significantly until the 2027–2029 period. Consequently, the TPCA predicts that supply chain tightness will persist at least until 2027.