PCB Shortage Hits Electronics Industry Amid West Asia Conflict and AI Server Demand

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 crisis has been triggered by the ongoing West Asia conflict and a surge in demand for AI servers.

According to senior officials from Syrma SGS Technology, one of the applicants under the government's electronics component manufacturing scheme, the recent strike by Iran on facilities in Saudi Arabia has resulted in a shortage of specialty chemicals used in PCB production. The company's managing director, Jasbir Singh Gujral, stated that the current quarter and subsequent quarter will see pressure on material costs.

The Electronics Components Manufacturers Association (ELCINA) has also highlighted the issue, pointing out that main raw materials used in PCB manufacturing have seen significant price increases. ELCINA Secretary General Rajoo Goel noted that copper clad laminate chemicals, photoresists, and plating chemicals have seen cost hikes of up to 70%.

To address the shortage, the government has approved several bare PCB manufacturing projects under the Electronics Components Manufacturing Scheme (ECMS). However, implementation is still pending, with capital inputs, equipment, and technology transfer being delayed.