Taiwan PCB Industry Poised for Growth Driven by AI and Satellite Communications

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The Taiwan Printed Circuit Association (TPCA), in collaboration with the Industrial Technology Research Institute's International Industrial Science and Technology Research Institute, released its latest report on the Taiwan circuit board industry during its "Trend Online Seminar" on February 26, 2025. The report highlighted that Taiwan's PCB industry achieved an output value of NT$816.8 billion in 2024, a 6.1% year-on-year increase. Growth was primarily driven by demand for AI servers, satellite communications, and automotive electronics. Looking ahead to 2025, the industry is projected to grow to NT$854.1 billion, a 4.6% increase. Continued demand for AI servers, edge AI applications, and low-orbit satellite PCBs are expected to fuel this growth.

The report also highlighted some key market trends. High-end HDI boards and multi-layer boards saw strong growth due to AI server and satellite communication demand. Automotive electronics demand remains robust, despite a slowing global auto market, and mobile phone boards continue to be a major product segment. Notably, server PCB output value increased by 49% in 2024, reaching NT$50.9 billion, and satellite PCB output value increased by 83% in 2024, reaching NT$19.3 billion. However, the flexible board market share declined due to stagnant mobile phone growth, and IC substrate market growth slowed but is expected to rebound with increased AI application adoption.

Despite the positive outlook, the industry faces challenges and uncertainties. US policy changes, including potential tariff adjustments and electric vehicle policy shifts, pose significant uncertainties. Deflation risks in mainland China could impact consumer market recovery. New production capacity in Thailand from Taiwanese and Chinese manufacturers may intensify price competition, and rising international gold prices and electricity costs may increase manufacturing expenses.

Overall, the Taiwan PCB industry is cautiously optimistic about 2025, with strong growth potential in AI server and satellite communication sectors. However, external factors such as US policy and global economic conditions require careful monitoring.