AI Computing Surge Reshaping PCB Material Landscape

Taoyuan, Taiwan – As AI computing continues to drive a comprehensive upgrade in hardware specifications, the global printed circuit board industry is undergoing a profound structural transformation. According to a report released in May by the Taiwan Printed Circuit Association (TPCA) and the Industry, Science and Technology International Strategy Center (ITRI), the global copper-clad laminate (CCL) market is expected to exceed $21.5 billion in 2026, driven by AI demand, with annual growth projected to reach 34%.

While Taiwanese suppliers have established competitive advantages in high-speed materials and key process consumables, high-end IC substrate materials and glass fabrics remain largely dominated by Japanese manufacturers. In response to supply bottlenecks and geopolitical uncertainties, Taiwan’s supply chain is accelerating high-value positioning through deeper independent R&D, further strengthening its critical role in the global AI supply chain.

In the CCL sector, strong demand from AI servers for large-format, high-layer-count PCBs with more than 40 layers and ultra-low-loss characteristics has placed the market in a strong growth cycle driven by both volume and pricing. The global CCL market reached $16 billion in 2025 and is forecast to expand sharply to $21.5 billion in 2026, supported by AI-related specification upgrades, representing annual growth of up to 34%.

As of 2025, Taiwanese suppliers held a combined global market share of 37% in this segment, with Elite Material the global leader at 19%. To address high-speed transmission requirements, Taiwanese suppliers are also actively developing next-generation materials such as low Dk2 glass fabric, quartz fabric and PTFE, aiming to strike an optimal balance between high-speed signal integrity and processing reliability, and to reinforce the material foundation for high-performance computing.

Flex circuit materials. In the flexible copper-clad laminate (FCCL) market, polyimide benefited from demand for battery management systems and advanced driver assistance systems in electric vehicles, as well as a recovery in the PC market. These factors lifted the market size to $1.01 billion in 2025. Rising memory prices have increased downstream device costs, however, and polyimide output value is projected to edge down slightly to $990 million in 2026.

In high-frequency applications, MPI and LCP remain key materials for advanced communications. Growth momentum has been constrained by moderate smartphone market expansion and design changes, however. The MPI market is forecast to reach approximately $240 million in 2026. Meanwhile, LCP, known for its ultra-low-loss advantages, saw demand decline by more than 10% in 2025 due to changes in iPhone antenna designs. Looking ahead to 2026, the market is expected to remain weighed down by weak consumer electronics demand, with overall scale estimated at around $280 million.

IC substrate materials. Japanese manufacturers continue to maintain a high level of technological dominance in semiconductor substrate materials, extending their influence to the very upstream end of the industry chain. Data for 2025 show that in the ABF substrate materials market, Ajinomoto held a 97% market share, effectively controlling a critical material supply point for global AI chip packaging.

Japanese suppliers also held more than 70% market share in BT substrate materials and low-CTE glass fabrics. Since AI applications are relatively less price-sensitive, suppliers have prioritized AI-related orders, resulting in structural supply bottlenecks. This has even begun to affect capacity allocation for automotive and traditional consumer electronics glass fabrics.

High-end raw materials. As AI servers evolve toward B300 and GB300 platforms, the PCB supply chain is benefiting from both higher value-added requirements and incremental demand growth. Taking HVLP copper foil as an example, demand for HVLP4 products with extremely low surface roughness, such as Rz 0.5μm, is rising rapidly. Driven by the AI wave, global HVLP copper foil capacity grew 48% in 2025 to 23,400 metric tons. Japanese suppliers currently account for more than 60% of supply.

At the same time, the high-layer-count and thick-board structure of AI servers has significantly increased processing complexity, directly raising technical requirements for PCB drill bits, a key process consumable. To address challenges such as chip evacuation and drill breakage, the market is accelerating its shift toward high-performance coated drill bits to enhance processing stability. As microvia drilling shortens drill-bit service life, the global drill-bit market climbed to $860 million in 2025. In 2026, supported by rising drilling volume and the high-value transformation of consumables, drill-bit output value is expected to grow 29% to $1.11 billion.