AI Demand Causes PCB Shortage, Leading to Price Hikes and Extended Lead Times for PC Makers

AI Industry Drives PCB Scarcity

The artificial intelligence sector is increasingly consuming manufacturing resources, leading to shortages in components previously allocated to PC and smart device production. Following price increases in RAM, GPUs, and SSDs, printed circuit boards (PCBs) are now experiencing similar supply constraints and rising costs.

PC Manufacturers Face Supply Challenges

An executive from an American PC manufacturer reported difficulties in securing adequate PCB supplies for upcoming product plans, despite potential declines in PC shipments. This shortage is attributed to the AI computing industry absorbing significant production capacity, leaving traditional PC makers underserved.

Extended Lead Times and Order Backlogs

PCB manufacturers are experiencing a surge in demand from AI products, which often offer higher payment. Some PCB orders now have lead times that have doubled, with fulfillment periods extending up to 30 months. One PCB supplier indicated that new orders placed today would not be fulfilled until late 2028.

Upstream Material Costs and Capacity Issues

The shortage extends to upstream materials required for PCB production, such as copper clad laminates (CCLs) and specialized fiberglass. Costs for CCLs have increased by at least 12 times since July. A major CCL supplier has reported its order book is full until 2030, despite plans to triple its capacity by 2028.

Chip Substrate Demand Also Rising

In a related development, Nvidia has formed partnerships with several chip substrate makers, including Japan's Ibiden, South Korea's Samsung Electro-Mechanics, and Taiwan's Unimicron. Chip substrates are specialized PCBs for mounting CPUs and GPUs. Unimicron plans to expand its capacity by 2.5 times over the next three years to meet demand.