PCBs become the unsung heroes of computing power, ushering in a golden decade for the AI era.

2025/11/06

TechNews

October 27, 2025
Author: Central News Agency Chiang Ming-yen

In the era of Artificial Intelligence (AI), Printed Circuit Boards (PCBs) are moving from behind the scenes to the center stage. The 2025 Taiwan Printed Circuit Board Exhibition (TPCA Show) has concluded, with many industry leaders unanimously optimistic that PCBs will usher in a golden decade, benefiting from the explosive growth in demand for AI servers and high-speed computing. This has also sparked trends such as upstream material shortages, supply chain consolidation, and the "bigger gets bigger" phenomenon.

The soaring demand for AI servers, data centers, and edge computing is driving structural growth in the PCB industry. Tseng Tzu-chang, Chairman of Unimicron Technology, stated bluntly, "AI will be booming for more than 10 years"; Lee Ting-chuan, COO of Zhen Ding Group, said that PCBs will usher in a golden decade and are the invisible protagonists in the computing power war; Shen Ching-fang, Chairman of Zhen Ding-KY (4958), described it as "a once-in-a-century opportunity for PCBs," and the industry should unite to accelerate transformation.

What role will PCBs play in the AI era?

Printed circuit boards (PCBs) are hailed as the "mother of the electronics industry," essential for the stable operation of everything from mobile phones and computers to AI servers and cloud data centers, yet they have historically received less attention. Shen Qingfang points out that the role of PCBs is shifting from "signal connection" to "system carrier." As AI servers integrate chips and high-bandwidth memory, the demand for larger PCBs, higher layer counts, and more stringent heat dissipation and signal integrity requirements is increasing, significantly enhancing manufacturing challenges.

Zhen Ding-KY General Manager Jian Zhenfu states that high-end AI server motherboards involve over 130 process steps and more than 100,000 drilled holes. "Any tiny deviation can affect performance," he says. PCB manufacturing is evolving towards semiconductor-grade standards, requiring reduced human intervention to ensure high yield rates.

Furthermore, the high-speed computing of AI is driving advancements in packaging technology, such as the growing attention given to CoWoP (Chip-on-Wafer-on-Platform) processes. This necessitates PCBs with high-precision signal and power routing capabilities, making copper foil substrates and low-thermal-expansion materials crucial.

Taiwan's Strategic Position in the Global PCB Industry

According to statistics, Taiwan ranks among the top two in global PCB production value. Taiwan leads the world in semiconductors and packaging/testing with market shares of 69% and 51% respectively, and also holds a 35% market share in IC substrates. With the accelerated development of AI and heterogeneous integration, its market share is expected to continue to climb, making Taiwan's strategic position in the PCB industry even more crucial.

Industry players are optimistic that, driven by the AI trend, PCBs have become another trillion-dollar industry in Taiwan, and will continue to grow alongside the semiconductor industry.

Why is the PCB Materials War Rampant?

The AI server boom is driving demand for high-end PCBs, but it is also exposing material supply bottlenecks. High-performance fiberglass cloth and ultra-low profile copper foil (HVLP) are in short supply. Specifically, there is a structural shortage of low-coefficient-of-thermal-expansion (Low-CTE) fiberglass cloth, while HVLP4 copper foil has become a key material for AI server upgrades. Lee Szu-hsien, chairman of Taiwan's Kingboard Copper Foil Manufacturer, pointed out that HVLP4 will become the mainstream in the market next year, "currently still in short supply, and demand will be strong in the next two to three years."

According to TPCA statistics, in the first half of 2025, the output value of rigid PCB materials in Taiwan reached NT$195.9 billion, an increase of 6.8% year-on-year; the output value of equipment reached NT$36.06 billion, an increase of 33.4% year-on-year, mainly driven by demand for AI server PCB drilling processes.

A senior executive at drill bit manufacturer Sharppoint stated that AI is driving drilling specifications to a new level, "next year will still be a good year," emphasizing that high-density, high-speed transmission designs have stringent requirements for hole position accuracy and quality.

Supply Chain Seizes AI Opportunities: Taiwanese Manufacturers Engage in Fierce Competition

PCB manufacturers are actively collaborating with material and equipment suppliers on R&D to accelerate material maturity and process optimization, forming a new industrial ecosystem. The industry is optimistic that Taiwan will connect a new landscape of "semiconductors + advanced packaging + PCB," becoming a key force in the "post-Moore's Law era."

Quanta Computer's Senior Vice President and General Manager of Quanta Computer, Yang Chi-ling, believes that as AI demand continues to advance, Quanta, starting from system manufacturing, is eager to collaborate with PCB manufacturers and the supply chain on long-term development strategies, closely connecting the design and manufacturing ends. "Only by integrating the supply chain can we move forward in the AI wave," he stated.

Prismark Partner Chiang Hsu-kao bluntly stated, "To seize AI opportunities, you have to work together, not act alone." Upstream collaboration and stable supply will become key competitive advantages.

PCB Massive Expansion: The Trend of "The Bigger Gets Bigger" Established

With the continuous improvement of AI computing power, PCBs are no longer a supporting player, but a key engine driving AI infrastructure. From materials to packaging, from processes to the ecosystem, Taiwanese manufacturers are actively seizing the opportunities of the AI era, optimistic about strong demand. Companies such as Zhen Ding-KY, Taikoo Technology, Unimicron, Kingmax, Sharppoint, and Kingmax are all increasing their production capacity.

Zhen Ding-KY continues to expand its high-end production capacity in China, Thailand, and Kaohsiung, Taiwan. This includes expanding AI high-end HDI and HLC production capacity at its China plant, as well as removing bottlenecks in high-end flexible printed circuit boards (FPCBs). Following certification by key clients in the server and optical communication fields, its Thailand plant is also under accelerated construction on its second plant. The Kaohsiung AI Park is building high-end ABF substrate and HLC+HDI production capacity, expected to begin trial production by the end of the year.

Taiguang Electronics also announced a 70% capacity expansion within three years, with mass production of M9 generation materials expected in the second half of 2026. Chairman Dong Dingyu stated that order intake will remain strong next year, continuing the "full production, full sales" strategy, with expansion primarily focused on Taiwan, Southeast Asia, and China.

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PCBs become the unsung heroes of computing power, ushering in a golden decade for the AI ​​era.

PCBs become the unsung heroes of computing power, ushering in a golden decade for the AI era.