PCB Shortage Hits Indian Electronics Industry Amid AI Boom and West Asia Disruptions

A shortage of printed circuit boards (PCBs) has hit the electronics industry in India, causing a price hike due to high demand from the AI sector and disruptions caused by the US-Iran conflict in West Asia. The crisis has surfaced at a critical juncture as major investments are being made under the Electronics Components Manufacturing Scheme amid rising domestic demand.

PCBs are crucial for almost all electronic hardware, and the shortage is attributed to several factors, including a hit on a chemicals factory in Saudi Arabia and shipping disruptions of imported raw materials. The industry is heavily reliant on imported copper clad laminate chemicals, which have seen a 70% price rise this year.

The secretary general of ELCINA, Rajoo Goel, emphasized the need for domestic production of critical raw materials, such as plating chemicals and etching chemicals, to alleviate the shortage. He also highlighted the growing demand from the AI sector, which is putting pressure on PCB supplies and driving up prices.

The crisis has significant implications for India's electronics industry, particularly with major investments in progress under the ECMS scheme. Experts are urging urgent corrective steps to address the situation and ensure smooth access to capital, equipment, and technology transfer for copper clad laminate manufacturing projects.