PCB Shortage Hits Indian Electronics Industry Amid Rising Material Costs and AI Demand

A shortage of printed circuit boards (PCBs) has hit the electronics industry due to rising material costs, supply chain disruptions in key shipping routes, and component diversion towards high-end artificial intelligence hardware.

The shortage stems from a combination of factors including the West Asia conflict, which has disrupted the supply of chemicals used in PCB manufacturing. Specifically, Iran's strike on facilities in Saudi Arabia has affected the supply of specialty chemicals required for PCB production, with Syrma SGS Technology Managing Director Jasbir Singh Gujral noting that the facility controlled 80% of the supply.

The shortage comes at a critical juncture for India's electronics industry, which is seeing rising domestic demand. Several major investments worth over Rs 15,000 crore are in the pipeline under the Electronics Components Manufacturing Scheme (ECMS), but these projects are still several quarters away from commercial production.

Educating on the challenges facing the industry, ELCINA Secretary General Rajoo Goel noted that key raw materials used in PCB manufacturing have seen significant price increases. For example, low-bromine epoxy resin has increased by 70%, JUSHI 7628 glass cloth doubled in price over the last 8 months, and copper foil and electrolytic copper prices have risen by over 30%.

To mitigate the situation, ELCINA is urging the implementation of CCL manufacturing projects approved under the ECMS scheme. The body notes that there is a 100% import dependence on photoresists, which requires urgent localization efforts. It also highlights the need for expansion in capacity and local production to meet growing demand.