PCB and Substrate Makers May Raise Prices as Material Shortages Persist

PCB and substrate makers are facing higher costs as upstream material prices continue to rise, with product quotes increasing about 20% to 30% over the past nearly six months. According to ChainCatcher, many PCB makers have seen a 2- to 3-month lag in passing on those costs, which has pressured gross margins. Market participants said some PCB makers are expected to raise prices starting in the third quarter, which could improve profitability. In substrates, shortages remain severe for electronic glass cloth led by T glass, as well as copper foil and drill bits, with some makers reporting a 20% shortfall. The shortage is expected to continue into next year. Analysts said substrate makers are likely to enter a supply shortage in the second half of this year as demand for AI GPUs and ASICs lifts high-performance computing demand and key raw materials remain tight. They expect substrate makers to continue rolling price adjustments, with room for double-digit price increases. Separately, strong AI-related demand and higher specifications in next-generation products are expected to support CCL makers as both prices and volumes rise. With high-end CCL lead times still lengthening and raw material shortages persisting, the price-up trend is expected to continue, supporting Taiwan-based CCL makers including Taiwan Union Technology and Taiwan Taoyuan. As substrate shortages widen, bargaining power for substrate makers is also expected to improve, with the trend likely to continue for Taiwan-based suppliers including Nan Ya PCB.