TAIPEI (Taiwan News) — Taiwan Printed Circuit Association said Tuesday that AI is reshaping the global PCB landscape and Taiwan, the world's second-largest PCB maker, must step up its advanced packaging capabilities.
The association said that two joint studies with the Industrial Technology Research Institute outline how East Asia’s leading producers are repositioning in the AI era, per CNA. It said demand for AI servers, high-performance computing, and EVs is redrawing competitive lines across the region.
The reports said China remains the world’s dominant PCB maker, with a 34.9% global share and NT$870.61 billion (US$27.95 billion) in output in 2024, per MoneyDJ. Output is expected to soar 22.3% to NT$1.06 trillion this year, boosting its share to 37.6% and extending its already formidable lead.
China’s growth is being powered by high-end applications such as AI servers, data centers, and new-energy vehicles, which are driving demand for multilayer boards. The reports said Chinese firms, supported by policy and financing, are rapidly upgrading into higher-value segments despite geopolitical headwinds.
Japan, the world’s third-largest PCB producer, is forecast to generate NT$359.06 billion in output this year for a 14.4% share. Its industry is expected to return to growth this year, and next as demand for AI chips and hard drive-related applications lifts output to NT$368.08 billion next year and NT$384.59 billion next year.
The reports say flexible printed circuits remain Japan’s largest PCB category at 51.3% of output, followed by substrates at 29.5% — a result of its long-term focus on semiconductors and advanced packaging. Ibiden holds up to 70% of the AI GPU substrate market, while Toppan and Kyocera are expanding Ajinomoto Build-up Film substrate lines to meet next-generation demand.
South Korea ranks fourth globally, with Korean firms producing about NT$244.73 billion in PCBs last year for a 9.8% share. The industry is concentrated in semiconductor substrates, at about 45% of output, and is supported by strong AI server and memory demand through 2026.
TPCA said Taiwan remains essential to the global AI server supply chain. It said the country must boost packaging technologies and achieve materials independence.
