Capacity shifts to AI
AI data centers are increasingly consuming production capacity that was once dedicated to PC and smart device makers. The price rises already seen in RAM, GPUs and SSDs are now spreading to one of electronics' most basic components: the PCB.
According to Nikkei Asia, an executive at an unnamed American PC maker said, "Even though PC shipments could decline again next year, we are still struggling to secure enough PCB supplies to meet our needs."
Lead times stretch
- One PCB maker said lead times for a significant number of products have doubled, with some orders taking as long as 30 months.
- Another supplier said a new order placed today would not be fulfilled until late 2028.
- A Taiwanese PC maker noted that costs for copper clad laminates (CCLs), used to build PCBs, have surged at least 12-fold since July.
- A leading CCL supplier said its order book is full until 2030, despite plans to triple capacity by 2028.
Movement in chip substrates
There is also activity in chip substrates, the small, intricate boards CPUs and GPUs are mounted on. NVIDIA is reported to have struck new agreements with Japan's Ibiden, South Korea's Samsung Electro-Mechanics and Taiwan's Unimicron. Unimicron is said to be planning to expand capacity 2.5-fold over the next three years.
Costs and staffing
As the PCB industry races to ramp up production, it is also struggling to find skilled engineers. Salaries across the sector have already risen 20-30% to retain skilled employees.
