Why are PCB prices constantly increasing in recent 2 years?
There are 2 core reasons of the PCB prices increasing: explosive demands for AI servers (computing power) and insufficient supply of raw materials. It’s a supply chain-wide price surge driven by demand and supply shortages.
The current situation can be viewed as a transmission chain, from end-user demand and the shortage of raw materials from upstream supply chain:
📈 Demand: Structural Demand Driven by AI
The demand for AI servers is the main reason for this round of price increases: Global AI server delivery are expected to exceed 2 million units in 2026, directly driving demand for high-end PCBs to grow by more than 110%.
The value of PCB for AI server is almost over 10 times expensive then any regular server, because it requires higher layer counts (up to 70-100 layers) and more complex manufacturing processes and quality control. This explosive growth has rapidly consumed the upstream production capacity for high-end raw materials.
⛓️ Supply Chain: Raw Material Shortages Due to Multiple Factors
While demand is surging, the upstream supply chain of raw materials is facing serious crises:
**Delayed Delivery of Core Equipment:
The global delivery time of Toyota looms, the key equipment to produce electronic fabric glass (the core material for copper-clad laminates, short as CCL), has expanded to 18-24 months, the lead time of current orders has been postponed to 2028. There is no possibility to expand new production capacity in short time.
**Disruption of Critical Resin Supply :
Approximately 70% of the world’s high-purity polyphenylene oxide (PPE) resin is produced and supplied from Saudi Arabia. Due to local conflict as well known, production in this region has been completely suspended, since the end of March, 2026, and has not recovered yet.
This type of resin is basic and key ingredent for high-end CCL(copper-clad laminates), and it’s supply has been directly distruped and exacerbates the shortage of supply chain for high-end PCBs.
**Capacity Constraints:
Upstream manufacturers are prioritizing production for higher-profit AI, high-end products, leading to a contraction in the supply of ordinary materials, which were used in conventional electronic products (such as 7628 standard thick fabric), which causes price increase of mid-to-low-end PCBs as following by.
💸 Result: Costs rising and significant impact across the whole electronics industry
The demand&upstream shortage have combined together and lead to a comprehensive surge in raw material prices, clearly affecting the PCB manufacturing process as well:
1. Upstream, Raw materials: The price of electronic fabric glass had increased by over 100% from 2025, and price of copper is still high.
2. Midstream, CCL(copper clad laminates): As the core substrate of PCBs, global leader Kingboard Laminates couldn’t sustain the cost pressures and has increased the price for seven rounds in 2026 till now, became a benchmark.
3. Downstream, PCB manufacturing: For example, a PCB manufacturer had increased PCB price during June and July of 2026, conclusively increased over 50%.
Due to the expansion cycle of upstream production is extremely long, the industry generally expects this situation will be difficult to ease in the short term, and the price increase trend may even continue into 2027.
For downstream, the final products (such as automobiles and consumer electronics), cost pressures may ultimately and eventually be passed on to consumers.
How shall common electronics manufacturers cope with the crisis of PCB prices increasing and supply shortages?
In the current situtation, PCB prices increasing and supply shortages surely bring more finacial pressure to common electronics manufacturers, and it’s not easy to resolve the pressures by a single method.
A combined strategy is needed to reduce the pressure and risks.
Referring to the experience of leading manufacturers in the industry, a two-pronged approach can be considered: short-term emergency response, medium-term adjustment.
⚡️ Short-term, Emergency Response:
Stabilizing the Supply Chain and Overcoming Difficulties Together
This is the “firewall” against the immediate risks of supply disruptions and price increases.
The goal is ensuring supply and reducing costs, or at least maintain it.
Collaborating with suppliers and enhance partnerships:
Large platforms need to buildup strategic inventory, thus to prioritize orders, to ensure the production and delivery for long-term, small and medium-sized customers.
As customers, you can proactively strengthen communication with core PCB suppliers, share mid-long term order schedules with PCB suppliers and let them prepare in advance, optimize payment terms and strive to become their priority customers.
Developing Suppliers:
Reaching out to traditional and conventional PCB manufacturers like Kyria, that offer “small-mid order, quick turn” services, to meet the long-tail demand for R&D, prototyping, small-mid batch and mass production, avoiding resource wastes due to minimum order quantity.
Cooperate with Customers:
Communicate with downstream customers, explain the cost structure and the reason, trying for reasonable price adjustments.
In many cases, PCBs only take a small percentage of the overall cost, and customers could understand the supply chain shortage and accept moderate price adjustments.
⚙️ Mid-term Adjustment: Product and Internal Optimization
When price increases become normal, it’s necessary to consider optimizing operations for product.
Optimizing Internal Cost Management:
* Manufacturing:
Reduce material waste and time wastage during production by optimizing processes.
* Flexible Inventory Management:
Establish a mechanism for analyzing the prices of commodities, and strategically stockpile when prices are relatively low to mitigate procurement cost fluctuations.
Optimizing Product Design and Processes, for Cost Reduction:
Collaborate with PCB manufacturers, optimizing material selection, improve panelization, adjust surface treatment without compromising performance, controlling costs on the design stage.
Summary
For common electronics manufacturers, the key to encounting current challenges, can be summarized as follows:
In the short term, stabilize production and safeguard the supply chain;
In the medium term, optimize internal management and seek profits through technology;
The core of this series of strategies is to drive companies to transform from “passive recipients” to a more bargaining and resilient player in the industry chain.
If you’re working on PCB design, planning to order PCB and PCB assembly, or facing the financial pressure from PCB price, you are welcome to reaching out to Kyrid, let’s discuss and see can we figure out a comprehensive solution!
