Copper Foil Shortage Hits AI-Server Industry as Demand Skyrockets

The AI-server PCB boom is causing shortages of high-end copper foil, a key component in server manufacturing. Industry sources cited by Digitimes estimate that the supply gap for HVLP4 ultra-low-profile copper foil will be around 1,500 tonnes in 2026 and widen to 2,500 tonnes in 2027.

NVIDIA is taking steps to secure its own supply of copper foil and glass-fabric capacity more than a year ahead by bypassing contract manufacturers (CCL makers) and directly purchasing from suppliers. This move has put pressure on other major tech companies like Google, AWS, and Meta to coordinate their procurement efforts.

The market for high-end copper foil is dominated by just two players: Mitsui Mining and Taiwan's Co-Tech, which together control 80-90 percent of the effective supply. Expansion in this market is limited due to equipment, formulation, and qualification barriers.