The production value of Taiwan’s printed circuit board (PCB) industry is expected to expand 12 percent annually this year to NT$915.7 billion (US$30.11 billion), driven primarily by strong demand for artificial intelligence (AI) servers, the Taiwan Printed Circuit Association said yesterday.
The latest growth forecast outpaced the 4.6 percent year-on-year increase the association estimated in March, as the industry’s production value in the second quarter jumped 14.4 percent to a record NT$218.2 billion on the back of strong demand for high-end products, the association said in a statement.
That came as integrated circuit (IC) substrates outgrew all other types of PCBs and recorded an annual gain of 20.6 percent in production value during the June quarter, the association said.
Photo: REUTERS
Growing demand for IC substrates for memory chips, graphic cards, AI chips and switch ICs amid higher shipments of smartphones, AI servers and PCs were the main factors, it said.
With strong growth momentum, the industry’s production value in the second half of the year is projected to climb 10.7 percent annually to NT$492.1 billion, thanks to wider adoption of AI applications and the rise of emerging technologies such as satellite communications, the association said.
“For the whole year, AI servers will be the main growth engine, boosting the overall PCB shipments to surge 82.8 percent year-on-year,” it said. “The specification upgrade is to stimulate demand.”
Additionally, robust demand for high-performance computing devices, satellites and automotive electronics would also help boost the industry’s growth this year, the association said.
However, the booming AI application demand is causing a supply bottleneck for critical PCB materials, including high-performance glass fiber and high-volumetric-low-profile (HVLP) copper clad laminates (CCLs), it said, adding that the situation could disrupt AI server shipments.
While new AI servers powered by Nvidia Corp’s B300 chips would significantly boost demand for HVLP CCLs, it is likely to trigger concern over supply constraints of such CCLs in the mid term, the association said.
As Taiwan is heavily reliant on Japanese suppliers for those critical raw materials, AI servers are facing the risk of production disruptions, it said.
The association has activated a special project to encourage local PCB companies to tap into high-value raw material areas, with an aim to develop an extensive PCB supply chain in Taiwan, it added.
Last year, the PCB industry’s production value expanded 6.1 percent to NT$816.8 billion, after suffering a recession in 2023, the association said.
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