Taoyuan, May 8, 2026 — As AI computing continues to drive a comprehensive upgrade in hardware specifications, the global printed circuit board industry is undergoing a profound structural transformation. According to the latest report by the Taiwan Printed Circuit Association (TPCA) and the Industry, Science and Technology International Strategy Center of ITRI, the global copper-clad laminate (CCL) market is expected to exceed US$21.5 billion in 2026, driven by AI demand, with annual growth projected to reach 34.2%.
While Taiwanese suppliers have established competitive advantages in high-speed materials and key process consumables, high-end IC substrate materials and glass fabrics remain largely dominated by Japanese manufacturers. In response to supply bottlenecks and geopolitical uncertainties, Taiwan’s supply chain is accelerating high-value positioning through deeper independent R&D, further strengthening its critical role in the global AI supply chain.
CCL: AI Demand Drives Growth in Both Volume and Price, Highlighting Taiwanese Suppliers’ Competitiveness
In the CCL sector, strong demand from AI servers for large-format, high-layer-count PCBs with more than 40 layers and ultra-low-loss characteristics has placed the market in a strong growth cycle driven by both volume and pricing. The global CCL market reached US$16.02 billion in 2025 and is forecast to expand sharply to US$21.5 billion in 2026, supported by AI-related specification upgrades, representing annual growth of up to 34.2%.
Taiwanese manufacturers have demonstrated outstanding competitiveness in this segment. As of 2025, Taiwanese suppliers held a combined global market share of 37.4%, with Elite Material Co. taking the global lead at 18.9%. To address high-speed transmission requirements, Taiwanese suppliers are also actively developing next-generation materials such as Low Dk2 glass fabric, quartz fabric and PTFE, aiming to strike an optimal balance between high-speed signal integrity and processing reliability, and to reinforce the material foundation for high-performance computing.
FCCL: Automotive Electronics Support Steady Growth, While Consumer Electronics Recovery Remains Limited
In the flexible copper-clad laminate (FCCL) market, PI-FCCL, the most widely used category, benefited from demand for battery management systems and advanced driver assistance systems driven by electric vehicles, along with a recovery in the PC market. These factors lifted the market size to US$1.01 billion in 2025. However, rising memory prices have increased downstream device costs, and PI-FCCL output value is projected to edge down slightly to US$990 million in 2026
In high-frequency applications, MPI and LCP remain key materials for advanced communications. However, growth momentum has been constrained by moderate smartphone market expansion and design changes. The MPI-FCCL market is forecast to reach approximately US$240 million in 2026. Meanwhile, LCP-FCCL, known for its ultra-low-loss advantages, saw demand decline by more than 10% in 2025 due to changes in iPhone antenna designs. Looking ahead to 2026, the market is expected to remain weighed down by weak consumer electronics demand, with overall scale estimated at around US$280 million.
IC Substrate Materials: Japanese Dominance Persists as Supply Gaps Emerge
In the semiconductor substrate materials segment, Japanese manufacturers continue to maintain a high level of technological dominance, extending their influence to the very upstream end of the industry chain. Data for 2025 show that in the ABF substrate materials market, which is indispensable to advanced packaging, Ajinomoto held a market share of 97.1%, effectively controlling a critical material supply point for global AI chip packaging.
Japanese suppliers also held more than 70% market share in BT substrate materials and low-CTE glass fabrics. Since AI applications are relatively less price-sensitive, suppliers have prioritized AI-related orders, resulting in structural supply bottlenecks. This has even begun to affect capacity allocation for automotive and traditional consumer electronics glass fabrics.
High-End Raw Materials and Process Consumables: AI Specification Upgrades Reshape the Supply Chain
As AI servers evolve toward B300 and GB300 platforms, the PCB supply chain is benefiting from both higher value-added requirements and incremental demand growth. Taking HVLP copper foil as an example, demand for HVLP4 products with extremely low surface roughness, such as Rz 0.5 μm, is rising rapidly. Driven by the AI wave, global HVLP copper foil capacity grew significantly by 48.1% in 2025 to 23,400 metric tons. Although Japanese suppliers currently account for more than 60% of supply, Taiwan’s Co-Tech has secured a position among the world’s top three suppliers with a 10.3% market share.
At the same time, the high-layer-count and thick-board structure of AI servers has significantly increased processing complexity, directly raising technical requirements for PCB drill bits, a key process consumable. To address challenges such as chip evacuation and drill breakage, the market is accelerating its shift toward high-performance coated drill bits to enhance processing stability. As micro-hole drilling shortens drill-bit service life, the global drill-bit market climbed to US$860 million in 2025. In 2026, supported by rising drilling volume and the high-value transformation of consumables, drill-bit output value is expected to grow by 29.1% to US$1.11 billion.
Deepening Strategic Positioning to Strengthen Taiwan’s Core Role in the AI Supply Chain
Amid global political and economic volatility, building resilient supply chains and strengthening technological autonomy have become core priorities for Taiwan’s PCB industry. The rise of AI demand is driving a new wave of technological upgrades and supply chain restructuring, creating opportunities to adjust supply structures that have long been dominated by Japanese manufacturers.
To ensure supply stability, brand customers are actively introducing second-source suppliers, allowing Taiwanese companies to gain entry into key areas such as high-speed materials and precision processing. Looking ahead, the global PCB supply chain is expected to move toward a higher degree of specialization, while the competitive landscape will continue to be shaped by technological evolution, computing demand and geopolitical factors.
Taiwanese suppliers should seize this wave of transformation by deepening independent R&D and strengthening their global footprint, thereby securing their strategic position in the AI industry chain.
