AI computing power drives the competition in PCB materials; Taiwanese manufacturers secure key supply positions.

2026/05/14

Yahoo News

May 7, 2026
Author: The Central News Agency, Reporter: Chiang Ming-yen, Editor: Lin Hsing-meng

(CNA reporter Chiang Ming-yen, Taipei, May 7) Driven by AI computing, the global PCB industry is undergoing a profound structural transformation. The Taiwan Printed Circuit Association (TPCA) observes that CCL (copper clad laminate) volume and price are both rising, highlighting the competitiveness of Taiwanese manufacturers. While Japanese companies monopolize substrate materials, a supply gap is emerging, allowing Taiwanese manufacturers to seize the opportunity to secure core positions in the supply chain in areas such as high-speed materials and precision machining.

A recent report from the Taiwan Printed Circuit Association (TPCA) and the Industrial Technology Research Institute (ITRI) indicates that the global copper clad laminate (CCL) market will exceed US$21.5 billion in 2026, driven by AI, representing an annual growth rate of 34.2%. Although Taiwanese manufacturers have a competitive advantage in high-speed materials and process consumables, high-end substrate materials and fiberglass cloth are still dominated by Japanese manufacturers.

Regarding copper foil substrates (CCL), TPCA points out that the market is experiencing a golden period of growth, characterized by both increased volume and price, benefiting from the strong demand from AI servers for large-size, high-multilayer (40 layers and above) CCLs with extremely low loss characteristics. The global CCL market size is projected to reach US$16.02 billion in 2025 and is expected to surge to US$21.5 billion in 2026, representing an annual growth rate of 34.2%.

As of 2025, Taiwanese manufacturers have already achieved a market share of 37.4%, with TSMC leading the world with an 18.9% market share. To meet the demands of high-speed transmission, Taiwanese manufacturers are also actively developing next-generation materials such as Low Dk2 fiberglass cloth, quartz cloth, and PTFE.

In the semiconductor substrate materials sector, TPCA points out that Japanese manufacturers maintain a high degree of technological monopoly. Data from 2025 shows that Ajinomoto holds a 97.1% market share in ABF substrate materials, essential for advanced packaging, practically controlling the lifeline of global AI chip packaging. In BT substrate materials and low coefficient of thermal expansion (Low CTE) fiberglass cloth, Japanese manufacturers also demonstrate absolute dominance, exceeding 70%. Because AI applications are less price-sensitive, suppliers prioritize fulfilling AI orders, leading to structural supply bottlenecks in the market.

As AI servers evolve towards the B300/GB300 platform, the PCB supply chain is experiencing a double benefit of "high-value" and "increased demand." TPCA points out that, taking HVLP copper foil as an example, the demand for HVLP4 products with extremely low roughness (Rz 0.5μm) is rising sharply. Driven by the AI wave, global HVLP copper foil production capacity is projected to grow significantly by 48.1% to 23,400 tons by 2025. Although Japanese manufacturers currently control over 60% of the supply, Taiwanese manufacturer Kingmax has already secured a 10.3% market share, ranking among the top three globally.

Meanwhile, the high multilayer and thick board structures of AI servers significantly increase processing difficulty, directly impacting the technical demand for PCB drill bits, a process consumable. The drill bit market size is projected to climb to US$860 million by 2025, and is expected to continue growing by 29.1% to US$1.11 billion in 2026.

TPCA observes that the rise in AI demand is driving a new round of technological upgrades and restructuring in the supply chain. While Japanese manufacturers previously dominated the supply structure, brand customers are actively introducing "secondary supply sources" to ensure stable supply, allowing Taiwanese manufacturers to gain entry into fields such as high-speed materials and precision machining. (Editor: Lin Xingmeng) 1150507

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