Taiwan's PCB industry booms as AI server demand surges in 2024

Taiwan's printed circuit board (PCB) industry is set for strong growth in 2024. The sector's production value is forecast to rise by 12% annually, reaching NT$915.7 billion (US$30.11 billion). A surge in demand for AI servers and high-performance electronics is driving this expansion.

The second quarter of 2024 saw the industry's production value jump 14.4% to a record NT$218.2 billion. IC substrates, used in memory chips, graphic cards, and AI chips, led the way with a 20.6% annual increase in value. Demand for these components has soared as AI applications expand.

AI servers are now the industry's main growth engine, with shipments expected to rise by 82.8% year-on-year. Beyond AI, strong demand for high-performance computing devices, satellites, and automotive electronics is also boosting production. However, this rapid growth has created supply challenges.

Critical materials like high-performance glass fibre and HVLP copper clad laminates are in short supply. Taiwan relies heavily on Japanese suppliers for these raw materials, raising concerns about potential production delays for AI servers.

The PCB industry's production value is projected to climb another 10.7% in the second half of 2024, hitting NT$492.1 billion. While demand remains high, dependency on imported materials could impact future output. The sector's ability to secure stable supply chains will be key to sustaining growth.