AI Demand Drives New PCB and IC Substrate Price Hikes

Demand for AI servers and high-performance computing systems is increasing the use of advanced printed circuit boards and IC substrates, which require low-loss copper-clad laminate, or CCL, and high-end glass fiber cloth. Capacity for those materials is difficult to add quickly because production involves long qualification cycles and high technical barriers, turning upstream supply into a key constraint on output and costs across the PCB industry.

The shortage of CCL and high-end glass fiber cloth could persist through 2027, prompting Taiwanese PCB suppliers to begin another round of price increases in the second half of 2026. No uniform increase has been disclosed. Unimicron Technology, Kinsus Interconnect Technology, Nan Ya PCB and Tripod Technology are expected to benefit, though the earnings impact will depend on how much of the higher material cost can be passed to customers and whether AI-related orders maintain their momentum.