AI Computing Power Demand Drives Upstream PCB Material Prices Wildly, Entering a ‘Super Cycle’
TAIPEI – Demand for upstream PCB materials is accelerating as AI servers push PCB layer counts and performance requirements to unprecedented levels, driving a sharp increase in the value of the materials used to build them.
According to industry data, successive generations of Nvidia’s computing platforms have dramatically raised the value of PCBs used in standalone AI racks. The H100 platform introduced in 2022 utilized roughly 16 to 20 layers, with PCB content valued at about $5,000 per rack. By the time the GB300 platform arrives in 2025, layer counts are expected to exceed 26 and PCB value per rack is projected to reach $35,000.
The next inflection point could come with Nvidia’s Rubin architecture, scheduled for volume production in the second half of this year. PCB stackups are expected to jump to between 32 and 40 layers, lifting PCB value per rack to approximately $116,000 – a 233% increase over the GB300 generation. By 2027, the Ultra architecture could require as many as 78 layers.
The increase in complexity is reverberating throughout the materials supply chain. The copper-clad laminate market, the foundation of PCB manufacturing, is forecast to grow to $18.7 billion in 2027 from $1.5 billion in 2024, representing a 12.5-fold increase.
Kingboard Laminate, the world’s largest laminate producer, implemented eight rounds of price increases between February 2025 and May 2026, resulting in cumulative hikes of 25% to 30%.
Premium materials are commanding substantial margins. Processing fees for high-end HVLP-4 copper foil have surpassed NT$20,000 per ton, more than 10 times the level of conventional HTE copper foil. Goldman Sachs estimates the supply gap for HVLP-3+ copper foil capacity could approach 38% between 2027 and 2028.
Electronic fiberglass cloth is experiencing similar pressures. Quartz fiber cloth suitable for Rubin-based systems sells for more than NT$200 ($6.30) per meter, compared with NT$4 to NT$6 per meter for conventional electronic fabric. Industry projections indicate the supply-demand imbalance could exceed 60% by 2027.
Geopolitical instability in the Middle East has further strained the market. Approximately 70% of global PPE resin capacity was disrupted, sending prices from 120,000 yuan ($17,700) per ton to 600,000 yuan ($88,560). The resulting shortages caused some PCB prices to rise by as much as 40% in a single month in April.
Meanwhile, efforts to expand high-end PCB production remain constrained by equipment availability. Lead times for critical tools such as laser drills are now extending into 2027.
Hot Takes
A bipartisan Senate bill would extend the Chips Act manufacturing tax credits to future semiconductor fabrication facilities in space, aiming to support US competitiveness in emerging microgravity chip production technologies. (Washington Times)
The global copper-clad laminate market is expected to exceed $21.5 billion in 2026, driven by AI demand, with annual growth projected to reach 34%. (Taiwan Printed Circuit Association and Industry, Science and Technology International Strategy Center)
Taiwan’s printed circuit board fabricators are expected to see domestic and overseas output rise 15% year-over-year to NT$1.05 trillion (US$3 billion) in 2026. (TPCA)
A Cambodian government study identified semiconductors as a future strategic industry, highlighting Thailand’s experience as evidence that building a PCB manufacturing base is an important first step. (Khmer Times)
The European Commission unveiled Chips Act 2.0, a revised semiconductor strategy focused on accelerating innovation, expanding manufacturing incentives, streamlining permitting and strengthening Europe’s semiconductor supply chain competitiveness. (SEMI)
Surging memory prices forced Chinese smartphone makers to reduce shipments of mid- to low-end models and raise product prices in the first quarter of 2026, causing global smartphone shipments for the quarter to fall 5.6% year-over-year to 278 million units. (TrendForce)
First quarter revenue among vendors of external OEM enterprise storage systems in 2026 was $9.2 billion, up 23% from a year ago. (IDC)
Taiwan’s major server manufacturers reported strong May revenue growth as continued investment in AI infrastructure fueled demand for data center hardware. (DigiTimes)
PCB manufacturers in India are seeking price increases of up to 50% and tariff relief on imported components as supply chain disruptions linked to the Iran conflict drive up material costs and extend lead times. (Economic Times)
The worldwide server market reached $122.6 billion in vendor revenue in the first quarter, up 30% year-over-year. (IDC)
Notebook OEMs reported shipments fell 33% sequentially in April due to weakened channel stocking momentum and a high base period. (DigiTimes)
Glass-core substrates are projected to grow 67% compounded annually from 2028 to 2040. (SEMI and Global Net)
Global semiconductor equipment billings rose 14% year-over-year to a record $36 billion in the first quarter, driven by AI-related manufacturing investments. (SEMI)
US defense officials and industry advocates warned that reliance on Chinese-made PCBs poses supply chain and security risks as AI demand grows, backing legislation that would provide a 25% tax credit for domestic PCB purchases and $3 billion for US manufacturing. (CNBC)
Notebook OEM shipments fell 33% sequentially in April due to weakened channel stocking momentum and a high base period. (DigiTimes)
Electrical and electronic products are now leading Bangladesh’s engineering exports sector as manufacturers expand into higher-value goods, including PCBs and PCB assemblies. (The Business Standard)
DDR2 contract prices will rise by approximately 55-60% in the second quarter, followed by a further 35-40% increase in the third quarter. (TrendForce)
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