TPCA: Taiwan's total PCB output value is expected to increase by 12% annually in 2025

2025/10/14

Commercial Times
October 3, 2025
By Yang Luoxuan, Commercial Times

Benefiting from rising demand for AI server deployments and a surge in pre-stocking driven by tariffs, Taiwan's PCB industry delivered impressive results in the second quarter, with quarterly output reaching NT$218.2 billion, a year-on-year increase of 14.4%. The cumulative output value for the first half of the year reached NT$423.6 billion, a year-on-year increase of 13.8%, demonstrating strong growth despite the off-season. The Taiwan Printed Circuit Association (TPCA) projects total output value to reach NT$915.7 billion in 2025, a year-on-year increase of 12.1%, demonstrating significantly better industry momentum than the past two years.

From a product perspective, high-end applications such as AI and high-performance computing are driving strong growth in PCB demand. Substrate boards saw a 20.6% year-on-year increase, driven by BT and ABF substrates, benefiting from a rebound in memory demand and rising demand for AI and networking chips, respectively. HDI boards saw a 16.2% year-on-year increase, and multilayer boards saw a 19.2% year-on-year increase, reflecting a rebound in orders for AI servers and PCs. Flexible and rigid-flex PCBs saw relatively solid year-over-year growth of 4.1% and 4.7% respectively, demonstrating relatively solid performance. However, the automotive market was one of the few application areas experiencing a decline, impacted by high US tariffs and the withdrawal of electric vehicle subsidies in Europe and the US.

TPCA indicates that in the second half of this year, supported by an 82.8% year-over-year increase in AI server shipments, output value is projected to reach NT$492.1 billion, a 10.7% year-over-year increase. However, the global economy remains subject to numerous uncertainties, including the deferred impact of tariffs on inflation, exchange rate fluctuations, and weak domestic demand in China, all of which could impact overall demand. Furthermore, demand for some consumer electronics products was already released in the first half of the year, leaving room for further growth in the second half.

The supply chain is also recovering. In terms of materials, high-frequency and high-speed CCL (copper clad laminate) output reached NT$195.9 billion, a 6.8% year-over-year increase, driven by AI servers. In terms of equipment, output value reached NT$36.06 billion, a 33.4% year-over-year increase, driven by capacity expansion in Southeast Asia and advanced drilling processes, reflecting increased capital expenditure.

However, the AI dividend has also exposed structural challenges for high-end PCB applications. The TPCA warns that some materials, including low-k and low-TC glass fiber cloth and HVLP copper foil, are already experiencing shortages. Glass fiber cloth faces a short-term supply-demand imbalance. Furthermore, with AI servers upgrading to the B300 platform, demand for HVLP4 copper foil will surge, potentially leading to supply constraints in the medium term. Currently, key materials are still heavily dependent on Japanese manufacturers. If production capacity is insufficient, this will directly impact the pace of end-user server shipments.

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