Taiwan PCB Industry Projects NT$915.7 Billion Output in 2025, Driven by AI Demand

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Thanks to robust demand for AI server deployments, tariff-driven lead-ins, and support from application markets such as satellite communications, Taiwanese PCB production showed strong growth momentum in the second quarter. Taiwan's PCB manufacturing output is projected to reach NT$218.2 billion in the second quarter of 2025, a 14.4% increase over the same period in 2024. Cumulative output for the first half of 2025 reached NT$423.6 billion, a 13.8% year-over-year increase, demonstrating robust growth despite the off-season. Overall development in 2025 is expected to outperform the past two years, with total output expected to reach NT$915.7 billion, a 12.1% year-over-year increase.

PCB products are experiencing positive growth as AI demand continues to drive momentum.

By product category, most PCB categories saw year-over-year growth in the second quarter of 2025, with high-end products showing the most significant gains. Substrate boards saw a 20.6% annual growth rate. BT substrates saw increased shipments thanks to a rebound in memory and mobile phone demand, while ABF substrates gained momentum due to a rebound in the AI, switch chip, consumer graphics card, and PC markets. HDI boards benefited from expanding demand for AI servers and low-orbit satellites, coupled with a rebound in the mobile phone and computer markets, resulting in significant revenue growth of 16.2% year-over-year. Multilayer boards, driven by demand from the AI server and personal computer markets, saw a 19.2% year-over-year increase. Flexible PCBs and rigid-flex PCBs saw annual growth rates of 4.1% and 4.7%, respectively. Regarding related applications, it is worth noting that the automotive market has been impacted by high U.S. tariffs on imported vehicles, which have suppressed global auto market growth momentum. Furthermore, the withdrawal of electric vehicle subsidies in Europe and the U.S. has led to a decline in shipments for some automakers, impacting Taiwanese automotive PCB orders. This was the only major application market to experience a decline this quarter.

While the second half of the year will continue to be strong, uncertainty remains.

With the expansion of AI applications and the rise of emerging applications such as satellite communications, PCB output value is expected to increase by 10.7% year-over-year to NT$492.1 billion in the second half of 2025, bringing the annual total output value to NT$915.7 billion, a 12.1% year-over-year increase. AI servers remain the primary growth driver for the end market, with full-year shipments projected to increase by 82.8% year-over-year, driven by specification upgrades. Looking ahead to 2025, the uncertain impact of tariffs on inflation will remain a major risk for the global PCB industry. Exchange rate fluctuations and domestic demand pressures due to deflation in mainland China remain potential uncertainties. Furthermore, some consumer electronics demand, already released prematurely in the first half of the year, may also impact momentum in the second half. Despite this, driven by applications such as AI, high-performance computing, satellite communications, and automotive electronics, the market remains solid for full-year growth.

The materials and equipment markets have stabilized, fueling increased demand for high-end products.

In the first half of 2025, Taiwan's PCB materials industry benefited from the supply advantages of high-frequency and high-speed copper-clad laminate (CCL) manufacturers in AI servers. Strong order momentum and high unit prices contributed to a 6.8% year-over-year increase in output value, reaching NT$195.9 billion. Regarding equipment, Taiwan's PCB equipment output value reached NT$36.06 billion in the first half of 2025, a 33.4% year-over-year increase, reflecting strong demand for display equipment. Growth is primarily driven by two key factors: first, equipment demand driven by factory expansion in Southeast Asia, and second, increased demand for related equipment and jigs for the drilling process in AI server PCBs. While market demand is optimistic, competition remains fierce. In response to strong customer demand in the high-end market, the supply chain is actively adjusting the proportion of high-value-added products. This combined supply and demand pressure presents profit opportunities, leading to a positive outlook.

The AI dividend presents both a crisis and an opportunity for a shortage of high-end materials.

The AI server boom is driving demand for high-end PCBs, but it also exposes potential bottlenecks in their supply. High-performance fiberglass cloth and HVLP copper foil are two key materials. The former includes low Dk copper foil for high-frequency and high-speed substrates and low CTE copper foil for IC substrates. A structural gap in the low CTE range is currently emerging, and this gap is unlikely to resolve in the short term. Conversely, as AI servers upgrade to the B300 generation, demand for HVLP4 copper foil will rapidly increase, potentially leading to supply constraints in the medium term. The current high reliance on Japan for key materials poses a risk of delays in server terminal product shipments. This severe shortage also presents an opportunity for material manufacturers to enter the high-end market. In light of this, TPCA recently invited relevant manufacturers to launch the High-End Materials Supply Chain Enhancement Promotion Project to exchange ideas on the development of high-end materials. Taiwan boasts a comprehensive PCB and semiconductor supply chain. Integrating this supply chain to keep pace with technological advancements towards higher value requires a collaborative effort from the supply chain. TPCA will continue to leverage this High-End Materials Supply Chain Enhancement Promotion Project to establish an information exchange platform connecting upstream and downstream supply chains, aiming to ensure that Taiwan's PCBs continue to play a vital role in the global high-end electronics supply chain.

Foreseeing the resilience of the PCB industry through the 2025 TPCA Show and IMPACT.

While Taiwan's PCB industry continues to face tariffs, exchange rates, and regional market instability, AI servers have become a core growth driver for both Taiwan and the global PCB industry, driving the accelerated upgrade of PCB manufacturing, materials, and equipment. This year's TPCA Show, held at the Nangang Exhibition Center from October 22 to 24, will bring together leading global PCB and substrate supply chains to showcase the latest technological advancements. The event will also feature opening keynote speeches, a Semiconductor and PCB Heterogeneous Integration Summit, and a CEO Forum focused on the advancement of AI. The IMPACT International Assembly and PCB Symposium, which opens a day earlier on October 21, will also bring together leading speakers from TSMC, AWS, Intel, and Sony to present advanced topics. This year's show, with a shared theme of “Energy-Efficient AI: From Cloud to the Edge,” showcases the resilience and strength of Taiwan's PCB industry chain through both breadth and depth. The TPCA Show and IMPACT continue to grow in scale, becoming essential events for those interested in PCB and semiconductor heterogeneous integration worldwide.