Reshaping the Supply Chain, TPCA: Taiwanese PCBs Become a Key Alternative Source for the US

2026/02/13

MoneyDJ Financial Network
February 9, 2026
Author: Wan Huiwen, MoneyDJ News

With the ongoing US-China trade war and rising global tariff barriers, geopolitics is rapidly reshaping the global PCB industry supply chain. The Taiwan Printed Circuit Association (TPCA) points out that under the trend of supply chain decentralization and risk diversification, the import and export structure of PCBs between Taiwan and the US has undergone significant changes, with Taiwan gradually becoming an important source of supply for the US market.

TPCA and the Industrial Technology Research Institute (ITRI) point out that after a long period of relocation, the US PCB industry has transformed from a mass production model to a niche market focused on multilayer boards and HDI, with products concentrated in high-reliability applications such as defense, aerospace, industrial control, and medical electronics. In 2025, the global output value of US PCB manufacturers is estimated at US$4.01 billion, with a market share of approximately 4.2%, ranking fifth globally. Driven by defense orders and data center infrastructure demand, the output value is projected to increase by 10% annually in 2026, exceeding US$4.4 billion.

Regarding trade policy, the TPCA points out that under the latest Taiwan-US tariff agreement, tariffs on Taiwanese PCB exports to the US are expected to decrease from 20% to 15%, putting them on par with Japan. In contrast, PCBs produced in mainland China, due to multiple punitive tariffs, have an effective tariff rate as high as 45%. Furthermore, US customers are accelerating the development of "non-Chinese manufacturing" supply chains for highly sensitive products such as AI servers and low-Earth orbit satellites, creating significant opportunities for Taiwanese PCB manufacturers to shift orders.

Driven by these factors, by 2025, Taiwan has surpassed mainland China to become the largest source of PCB imports to the US; while Mexico, due to its geographical advantages, has become the most important PCB export market for the US, demonstrating a clear trend of supply chain integration in North America. This change is also reflected in Taiwan's export structure: the proportion of Taiwanese PCB exports to mainland China has declined from 44% in 2020 to 27% in 2025; while the proportion of exports to the US has increased from 7% to 16% during the same period, reflecting a shift in market focus.

The TPCA further points out that the US adopts a two-track approach of "regulation and incentives" in promoting manufacturing reshoring. On the one hand, it restricts the procurement of PCBs from specific countries by the defense system through the National Defense Authorization Act; on the other hand, it provides subsidies through the Defense Production Act and the Chip Act to help US companies expand their high-end production lines. However, since current subsidies are mostly concentrated in the defense and advanced packaging sectors, it is difficult to comprehensively change the cost structure of US PCB manufacturing in the short term.

In practice, the TPCA points out that PCB transactions mostly adopt the FOB model, with tariff costs mainly borne by the buyer. Furthermore, most Taiwanese PCBs are indirectly exported to the US after assembly with end products, and finished products such as mobile phones, servers, and laptops still enjoy zero-tariff treatment. Therefore, the direct impact of tariffs on the overall operations of Taiwanese companies is relatively limited.

From a manufacturing perspective, Asia still has significant advantages in cost, production efficiency, and supply chain integrity, and is unlikely to be completely replaced by US manufacturing in the short term. Currently, Taiwanese companies' presence in the US is mainly focused on prototyping and customer service, and has not yet reached mass production scale. TPCA believes that the decision to further establish a factory in the US in the medium to long term still requires sound business acumen, including return on investment, competitor activities, and bargaining power with customers, which will be key decision-making factors.

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