AI Boom, West Asia Crisis Trigger PCB Shortage and Price Hikes in Electronics Industry

The global electronics industry is facing a shortage of printed circuit boards (PCBs), a crucial component in electronic products, due to rising material costs and supply chain disruptions. The West Asia conflict has triggered a shortage of chemicals used in PCB manufacturing, while the surge in AI server demand has diverted capacity from other applications.

According to ELCINA, India's electronic components makers body, the main raw materials used in PCB manufacturing have seen significant price hikes over the past 8-9 months. Copper Clad Laminate Chemicals, for instance, have increased by up to 70%.

The shortage of PCBs comes at a critical time for the Indian industry, with several major investments worth over ₹15,000 crore pending under the Electronics Components Manufacturing Scheme (ECMS). Syrma SGS Technology Managing Director Jasbir Singh Gujral said that his company's proposed PCB plant is 70% complete and will start commercial production in FY 2027-28.

ELCINA Secretary General Rajoo Goel emphasized the need to expedite implementation of CCL manufacturing projects and ensure timely capital inputs, equipment, and technology transfer. He also highlighted the urgency of localizing photoresist materials, which currently rely on 100% imports.