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According to an analysis report jointly released by the Taiwan Printed Circuit Association (TPCA) and the Industrial Technology Research Institute's International Industrial Science Institute, the total output value of Taiwan's printed circuit (PCB) industry chain will reach NT$1.22 trillion in 2024, with an annual growth rate of 8.1%. The growth was mainly driven by the expansion of demand for AI server applications, and the materials and equipment industry chains benefited simultaneously. Companies with high AI relevance in the supply chain generally showed revenue growth.
Material upgrades and high-end applications drive output value growth
in the materials field. In 2024, Taiwan's total PCB material output value will reach NT$346.3 billion, a year-on-year increase of 13.4%. In terms of material structure, hard board materials are the main ones, accounting for more than 50%. Among them, the demand for high-end copper foil substrate (CCL) and low-loss (Low DK) materials has increased significantly, which is closely related to high-speed transmission and AI server applications. Taiwanese companies have certain technical advantages in high-speed and high-frequency CCL materials such as M7 and M8, and their application scenarios have covered 800G switches, AI/HPC servers, etc.
At the same time, glass fiber and copper foil suppliers have stepped up technology development and capacity investment to respond to the material upgrade needs of AI and high-frequency applications. Some manufacturers have also introduced new materials such as quartz glass fiber and transparent polyimide (PI), and their application areas have expanded to satellite communications and wearable devices, showing a trend of product diversification.
Although rigid board materials have performed relatively well in recent years, flexible board materials have also found emerging application scenarios in the smart glasses and wearable device markets. Many manufacturers will launch smart glasses products in 2025, combining generative AI and low-power chip design to enhance the wearing experience. Taiwanese companies have invested in the development and supply of related materials, introducing transparent PI and low-loss flexible board materials. The smart glasses market will show significant growth in 2025, which is expected to further drive the demand for related flexible board materials. Based on the above analysis, the overall output value of Taiwan's PCB materials is estimated to reach NT$375.7 billion in 2025, with an annual growth rate of 8.5%.
PCB equipment manufacturers are actively developing high-end and back-end packaging and testing fields.
In 2024, Taiwan's PCB equipment output value will reach NT$59.5 billion, benefiting from the increased demand for high-layer and high-density PCB process equipment for AI applications, with an annual growth rate of 6.3%. The main products in terms of output value include machine tools such as mechanical drilling, laser drilling and molding (accounting for 19.2%), wet process equipment (accounting for 15.0%), needles and knives (accounting for 12.2%), and conveying and automation equipment (accounting for 11.3%). Looking ahead to 2025, driven by the mass production of high-end processes and new production capacity in Southeast Asia, Taiwan's PCB equipment output value is estimated to be NT$63.9 billion in 2025, with an annual growth rate of 7.4%.
It is also worth noting that the semiconductor industry is actively expanding its production capacity due to AI, high-speed computing, and advanced packaging (such as CoWoS and Fan-out), which has driven the demand for equipment and attracted PCB equipment manufacturers to actively enter the field. This brings new opportunities to equipment manufacturers who are currently suffering from strong competition in the mid- and low-end markets. Some Taiwanese equipment manufacturers are turning to the semiconductor field with higher technical barriers. For example, Chi Sheng, Youtian, Daliang, Qun Yi, and Xunde are actively making arrangements in advanced packaging (such as CoWoS, FOPLP) and precision measurement equipment, and establishing cooperation mechanisms with international semiconductor manufacturers.
Southeast Asian layout has become one of the strategies of the PCB supply chain to cope with geopolitics.
Under the influence of geopolitics and Sino-US technology policies, the global supply chain layout has been adjusted. Taiwan's PCB manufacturers have gradually relocated part of their production capacity to Southeast Asia to strengthen the resilience of enterprises in responding to global risks. Thailand, Vietnam and Malaysia are the main areas for production expansion. So far, many companies have built factories in these countries and entered the trial production stage.
Many material and equipment manufacturers are also expected to release new overseas production capacity in 2025. For example, Tai Optoelectronics' monthly production capacity in Malaysia is planned to reach 600,000 CCL pieces. Lianmao and Taiyao are also simultaneously expanding their factories in Thailand to provide materials needed for servers and communication equipment. Equipment-related companies are also following their customers to Southeast Asia to provide nearby services and explore new markets, mainly concentrated in cities around Bangkok, Thailand. As the PCB supply chain gradually becomes complete, the substantial growth of Thailand's PCB manufacturing cluster is just around the corner.
In 2025, Taiwan's PCB industry chain will continue to grow driven by applications such as AI servers, high-efficiency computing and Edge AI. The materials and equipment supply chain will benefit from high-end processes and the launch of new PCB production capacity in Southeast Asia. The total output value of Taiwan's PCB industry chain at home and abroad is expected to maintain steady development, reaching NT$1.29 trillion, a year-on-year increase of 5.8%.
In the face of drastic changes in international trade and regional situations, planning sustainable development and risk management strategies for Taiwan's PCB industry chain has become an important mission of the 12th TPCA board of directors and supervisors. TPCA will use the Sustainability Committee as a policy advice platform to deepen communication between industry and government and help the industry respond quickly to supply chain risks and external shocks. Looking ahead, TPCA will focus on three major driving directions: strengthening the resilience of the industrial system, actively expanding international market momentum, and accelerating the integrated application of technology research and development and information security, continuously promoting industrial upgrading and innovation, and leading the steady growth of Taiwan's PCB industry chain.
