According to Reuters and Digital Times, Printed Circuit Board (PCB) prices continue to rise, mainly driven by tight supply of key raw materials and strong demand from AI-related applications.
A major reason is the shortage of PPE resin. Saudi Arabia’s Jubail Industrial City used to supply around 70% of global PPE resin. Since late March, shipping through the Strait of Hormuz has been disrupted, which has affected production and logistics. Some facilities were also impacted by regional attacks, so operating capacity remains limited and recovery has been slow so far.
So why does PPE matter so much? PPE resin is the key raw material used to make copper clad laminates (CCL), which is the main base material of PCBs and usually accounts for 30% to 60% of total cost. When PPE is in short supply, CCL prices move up, and that pressure quickly passes on to PCB makers. This year, the global CCL leader Kingboard Laminates has already raised prices four times, and other suppliers have followed.
At the same time, strong demand from AI server infrastructure is taking up a large share of high-end PCB capacity, tightening global supply and gradually pushing cost pressure into lower-end electronics markets.
In our local market, electronic materials are getting tighter, including MLCCs, PCB substrates, and rising material prices. Suppliers are raising prices and becoming more cautious in pricing and order management, with more frequent price changes and shorter quotation periods, and tighter control over order changes such as cancellations or delays. As a result, we are also under pricing pressure.
We will continue to follow these supply chain changes and keep you updated.
