TAIPEI (Taiwan News) — Taiwan’s printed circuit board industry is on track to deliver up to NT$907.2 billion (US$28.76 billion) in output this year, growing 11.1% year on year, according to a Taiwan Printed Circuit Association report.

TPCA said combined domestic and overseas PCB output reached NT$667.1 billion in the first three quarters, marking an 11.3% year-on-year increase, per CNA. The industry’s growth momentum reflects a structural shift toward AI-driven applications, per MoneyDJ.

Q3 output totaled NT$243.5 billion, up 7.2% from a year earlier, even as smartphone demand softened following front-loaded shipments earlier this year due to tariff concerns. Growth was largely supported by strength in AI servers and related applications.

Q4 output is projected at NT$240.1 billion, up 10.4% year on year. TPCA said the outlook underscores the industry’s transition toward higher-value products.

The expansion of generative AI applications has driven shipments of Ajinomoto Build-up Film and Bismaleimide-Triazine substrates used in advanced AI chips. High-layer-count multilayer boards and high-density interconnect boards also posted solid growth alongside rising demand for AI servers and high-speed switches.

The computer segment surged 25.2% year on year in Q3, while the semiconductor segment rose 14.2%, making them the two main growth engines. Communications fell 7% and automotive declined 4.3%, as earlier smartphone shipments and intensified competition from Chinese PCB makers weighed on demand for Taiwan-made products.

Looking ahead, the report said demand for AI servers is expected to remain strong in Q4, while tight supply of advanced materials could push prices higher. That combination is likely to result in growth in shipment volumes and prices across Taiwan’s PCB supply chain.