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The global laminate industry has entered a period of structural change unlike anything seen in recent decades. Explosive investment in AI infrastructure, including AI servers, advanced networking, optical communications, and data centers, is driving demand for laminate materials at a pace the supply chain cannot match.
The warning signs have been building for months. Extended lead times, repeated price increases, customer stockpiling, raw material allocation, and major capacity expansion announcements all point to an industry increasingly under strain. How prepared are individual companies to respond to these changes?
Experience from previous supply chain disruptions has shown that resilience cannot be created once a crisis begins. Alternative materials, qualified suppliers, strategic inventory, and long-term partnerships all require time to establish.
Compounding today’s challenge are less visible pressures that extend beyond material shortages. As production capacity shifts toward higher-value AI applications, we see secondary constraints in conventional PCB materials. Rising inventory values are placing unprecedented demands on working capital throughout the supply chain.
For example, major vertically integrated groups such as Kingboard Holdings and Nan Ya Plastics Corporation are reducing merchant sales of glass yarns and fabrics in favour of internal consumption. They operate extensive downstream businesses in prepreg, copper-clad laminates (CCL), and PCBs, and, given their scale and reach across the value chain, these groups can shape pricing dynamics throughout the broader PCB industry. The consequence is less material reaching the merchant market, increased pressure on independent manufacturers, and a further acceleration of allocation-driven supply conditions.
So, for many organizations, the greatest competitive advantage over the coming months may not be simply securing material, but having the financial resilience and supply chain strategy to secure it before constraints become critical.
To continue reading this article, which appeared in the August 2026 edition of I-Connect007 Magazine, click here.
