AI-Driven Demand Exacerbates Printed Circuit Board Shortage, Prices Soar

The printed circuit board (PCB) industry in India is facing a crisis due to a shortage of raw materials, leading to a price hike in the electronics sector. The shortage is attributed to disruptions in shipping services caused by the US-Iran conflict in West Asia and a sudden surge in demand for PCBs from the Artificial Intelligence (AI) industry.

The PCBs are a crucial component in almost all electronic hardware, and the crisis has surfaced at a critical juncture as several major investments are underway under the Electronics Components Manufacturing Scheme amid rising domestic demand. The managing director of Syrma SGS Technology, Jasbir Singh Gujral, stated that some facilities in Saudi Arabia have been hit by Iran, controlling 80% of the supply of a specialty chemical used in PCB production.

The Electronic Industries Association of India (ELCINA) has expressed concern over the shortage and has called for urgent corrective steps to address the situation. The secretary general of ELCINA, Rajoo Goel, stated that key raw materials such as Copper Clad Laminate Chemicals are imported in the country, with domestic production only meeting 20-40% of the industry's needs.