Geopolitics Reshapes PCB Industry as TPCA Leads Taiwan–U.S. Push at APEX EXPO 2026

Estimated reading time: 6 minutes

From the US-China trade war to global tariff barriers, geopolitics is dramatically reshaping the global PCB industry landscape. As the global supply chain is rapidly restructuring, the import/export structure between Taiwan and the US is also undergoing structural changes. To help Taiwanese businesses seize opportunities arising from supply chain restructuring and capitalize on the US's central position in the global market, the Taiwan Printed Circuit Association (TPCA) will host a special "Taiwan High-End Packaging Exhibition Zone" at APEX EXPO 2026, the world's premier PCB event, from March 17-19 in Anaheim, California. This zone will bring together leading supply chain companies to showcase Taiwan's technological prowess to the world and accelerate connections for Taiwan-US cooperation opportunities.

Tariffs and geopolitics are reshaping supply chains, leading to a structural shift in the Taiwan-US PCB import and export landscape.

Looking back at its history, the United States was once the world's leading PCB industry, with its output value ranking first globally for many years. However, since the late 1990s, the industry has undergone drastic consolidation and relocation due to the impact of globalization, the rise of asset-light models, the dot-com bubble of the millennium, and the rise of Chinese manufacturing. Today, the US PCB industry has transformed from a large-scale mass production model to a niche market structure.

According to data from TPCA and ITRI's Industrial Technology Research Institute, the global output value of US PCB manufacturers is estimated at approximately US$4.01 billion in 2025, representing a global market share of about 4.2%, ranking fifth in the world. Their product structure is highly concentrated on multilayer boards and HDI, with applications focused on high-reliability, high-value-added niche products in defense, aerospace, industrial control, and medical electronics, closely linked to domestic demand in the US as the world's largest military-industrial complex. Looking ahead to 2026, benefiting from defense orders and strong demand for infrastructure construction such as data centers, the output value of US PCB manufacturers is expected to grow by another 10%, exceeding the US$4.4 billion mark.

Under the latest "Taiwan-US Tariff Agreement," tariffs on Taiwanese PCBs exported to the US are expected to drop from 20% to 15%, putting them on par with Japan. In contrast, PCBs manufactured in mainland China are subject to multiple punitive tariffs, resulting in an effective tariff rate as high as 45%. Meanwhile, US customers are accelerating the development of "non-Chinese manufacturing" supply chains for highly sensitive products such as AI servers and low-Earth orbit satellites, creating significant opportunities for Taiwan and other regions to divert orders.

Driven by the aforementioned factors, Taiwan surpassed mainland China to become the largest PCB importer to the United States by 2025; while Mexico, due to its geographical advantages, remained the most important PCB export market for the United States, demonstrating the increasingly close integration of the North American regional supply chain. This trend is also evidenced by Taiwan's export data: the proportion of Taiwan's PCB exports to mainland China decreased significantly from 44% in 2020 to 27% in 2025; during the same period, the proportion of exports to the United States more than doubled from 7% to 16%. Furthermore, Taiwanese businesses are accelerating their expansion in Southeast Asia, building a globally diversified production network.

The US adopts a dual-track policy to promote PCB production; however, corporate investment still needs to return to business acumen.

As the US reindustrialization policy progresses, its strategy for bringing manufacturing back to the US adopts a dual-track approach of "regulation" and "incentives." On the policy front, the National Defense Authorization Act (NDAA) strictly limits the procurement of PCBs from China, Russia, Iran, and North Korea by the defense system, establishing a national security-oriented supply chain system, and using tariff barriers to increase PCB import costs. On the other hand, although there is currently no dedicated industry legislation for PCBs, related companies can obtain subsidies through the Defense Production Act (DPA) and the Chip Act. For example, under the DPA, US PCB manufacturers such as TTM, GreenSource Fabrication, and Calumet received subsidies ranging from $30 million to $40 million to expand high-end production lines to meet defense-related needs; under the Chip Act, Absolics also received $75 million for glass substrate research and development. However, since current subsidies are mostly concentrated in the defense and advanced packaging sectors, the US PCB industry continues to advocate for more inclusive incentive programs, including a 25% investment credit and a $3 billion PCB-specific fund, but these remain at the policy advocacy stage.

Regarding tariff pressure, since PCB transactions mostly adopt the FOB (Free On Board) model, tariff costs are usually borne by the buyer. Furthermore, PCBs are electronic components; even if US PCB imports reach $3 billion by 2025, this represents a small proportion of direct exports to the US compared to Taiwanese companies' total global output of approximately $29 billion, thus only a localized impact. In addition, the main downstream assembly products of Taiwanese PCB companies, such as mobile phones, servers, and laptops, currently enjoy zero-tariff treatment. This means that the vast majority of PCBs enter the US indirectly through assembly into finished products, thereby avoiding tariff barriers for components.

From a manufacturing perspective, the PCB industry is highly competitive and sensitive to cost control. Compared to US manufacturing, Asia still holds significant advantages in overall cost, production efficiency, supply chain density, and the completeness of upstream and downstream support, making it difficult to replace in the short term. Currently, Taiwanese PCB companies investing in the US are concentrated around Silicon Valley, primarily establishing prototyping and customer service centers, and have not yet formed a mass production layout. Looking at the medium to long term, whether Taiwanese companies will shift from services to physical manufacturing ultimately depends on sound business calculations. Besides a feasible return on investment, the actions of competitors and their bargaining power with customers will be key factors in deciding whether to set up a factory.

Showcasing Taiwan's High-End Packaging Capabilities at APEX EXPO 2026

Taiwan's semiconductor and PCB industries hold a crucial position in the global AI server supply chain. Taiwanese PCB production value ranks among the top in the world, and Taiwan leads in the semiconductor and packaging/testing sectors with global market shares of 69% and 51% respectively, while also achieving a 33.5% share in IC substrates. With the accelerated development of AI and heterogeneous integration, its market share is expected to continue to climb, making Taiwan's strategic position in the PCB industry even more critical.

In response to the global supply chain restructuring trend, TPCA continues to strengthen the connection and layout of Taiwan's PCB industry with the US market. For example, in 2025, the Taiwan High Tech Forum was held in California, systematically showcasing Taiwan's technological strength in high-end PCBs and advanced packaging and testing, and simultaneously participating in the Taiwan Image Exhibition in Texas to further promote the capabilities of Taiwan's PCB supply chain to US buyers and industry partners.

During APEX EXPO 2026 this year (March 17-19) at the Anaheim Convention Center in California, the Taiwan Printed Circuit Association (TPCA) (booth #3844) will join hands with members such as Jiasheng Enterprise (#3842), Jingjing Technology (#3843), Lisheng Technology (#3942), Taiwan Greymont (#3944), and Taifeng Printed Circuit (#3845) to set up the "Taiwan Advanced Packaging Hub". This hub will showcase representative technologies and industrial strengths in the fields of advanced packaging and high-end PCBs, and promote cooperation and exchange with international partners.