TAIWAN – Taiwan’s PCB industry is projected to reach $39.9 billion this year, growing 5.8% year-over-year, according to a joint report by the Taiwan Printed Circuit Association (TPCA) and ITRI’s Industrial Economics and Knowledge Center. Last year, the industry recorded $37.7 billion, an 8.1% rise fueled by strong demand for AI server applications.

The materials segment saw a significant boost, growing 13.4% to $10.7 billion last year compared to the year prior. Rigid board materials accounted for more than half of this, with high-end copper-clad laminates (CCL) and low-loss materials leading demand for use in 800G switches and AI/HPC servers.

Flexible PCB materials are gaining traction in emerging technologies like smart glasses, which are expected to grow this year. Taiwan is developing low-loss substrates and transparent PI to support this shift. The flexible materials market is projected to grow 8.5% this year compared to last year, reaching $11.6 billion.

On the equipment side, Taiwan’s output hit $1.84 billion last year, with expected growth to $2 billion in this year. Growth is supported by high-density manufacturing equipment for AI-related PCB processes and advanced packaging technologies. Taiwanese equipment makers are moving into backend semiconductor sectors such as CoWoS and fan-out packaging amid competition in the mid-range PCB equipment space.

Geopolitical uncertainties and US-China tensions have pushed companies to expand production in Southeast Asia. Major investments in Thailand, Vietnam and Malaysia include new CCL and substrate factories and equipment facilities. Companies like TUC, Elite Material and ITEQ are actively increasing overseas capacity.