Taiwan’s PCB Industry to Grow 6% to $40B in 2025
TAIPEI – Taiwan’s PCB industry is projected to reach $39.9 billion this year, growing 5.8% year-over-year, according to a joint report released in May by the Taiwan Printed Circuit Association (TPCA) and ITRI’s Industrial Economics and Knowledge Center. Last year, the industry recorded $37.7 billion, an 8.1% rise fueled by strong demand for AI server applications.
The materials segment saw a significant boost, growing 13.4% to $10.7 billion last year compared to the year prior. Rigid board materials accounted for more than half of this, with high-end copper-clad laminates (CCL) and low-loss materials leading demand for use in 800G switches and AI/HPC servers.
Flexible PCB materials are gaining traction in emerging technologies like smart glasses, which are expected to grow this year. Taiwan is developing low-loss substrates and transparent PI to support this shift. The flexible materials market is projected to grow 8.5% this year compared to last year, reaching $11.6 billion.
On the equipment side, Taiwan’s output hit $1.84 billion last year, with expected growth to $2 billion this year. Growth is supported by high-density manufacturing equipment for AI-related PCB processes and advanced packaging technologies. Taiwanese equipment makers are moving into backend semiconductor sectors such as CoWoS and fan-out packaging amid competition in the mid-range PCB equipment space.
Geopolitical uncertainties and US-China tensions have pushed companies to expand production in Southeast Asia. Major investments in Thailand, Vietnam and Malaysia include new CCL and substrate factories and equipment facilities. Companies like TUC, Elite Material and ITEQ are actively increasing overseas capacity.
Hot Takes
Taiwan reported record-high export orders for April, up 19.8% year-over-year, driven by strong global demand for artificial intelligence applications. The electronics sector grew 35% to $23.1 billion. (Ministry of Economic Affairs)
Semiconductor sales reached $167.7 billion in the first quarter, up 18.8% from the previous year, but down 2.8% from the previous quarter. March sales were up 1.8% month-over-month. (SIA)
While first-quarter electronics sales dipped 16% quarter-over-quarter and remained flat year-over-year, IC sales posted a 23% annual increase, fueled by AI and data center demand, and capital expenditures rose 27% year-over-year. (SEMI)
North American printed circuit board shipments fell 6.8% year-over-year in April but rose 11.5% sequentially. Year-to-date shipments are up rose 4.6%. Bookings surged 23.5% year-over-year and 26.9% from March. (IPC)
The memory market is seeing a sharp surge, fueled by rising contract prices since the second quarter and Samsung Electronics’ move to phase out DDR4 modules. (DigiTimes)
China’s manufacturing activity fell to a PMI of 49 in April, dropping below the growth threshold as steep US tariffs took effect. (China National Bureau of Statistics)
Global semiconductor materials revenue increased 3.8% to $67.5 billion in 2024. (SEMI)
Industrial printer shipments declined 1% in 2024, as shipments in the fourth quarter were 5% lower than the previous year. (IDC)
Weakening demand in the automotive and industrial sectors slowed shipment growth for SiC substrates in 2024, with global revenue for N-type SiC substrates falling 9% $1.04 billion. (TrendForce)
North American EMS shipments rose 0.2% in April compared to the same month in 2024 and dipped 1.4% from March. Year-to-date shipments are down 0.2%. Bookings dropped 10% year-over-year and declined 7.7% sequentially. (IPC)
