Preface

The AI server market is at a pivotal turning point, driven by increased capital expenditure from cloud giants like NVIDIA, AWS, and Google. This surge in spending is fueling a high demand for advanced PCBs and materials. By 2025, the Taiwanese PCB industry is expected to enter a phase of structural growth. This dynamic is boosting valuations, particularly for key players such as Kinpo Electronics, Taiwan Copper Clad Laminate Co., Ta Ya Electric Wire & Cable Co., and Golden Trust Cord Co.

Lazy bag

The intensifying demand for AI servers is driving PCB material upgrades. Shortage effects are escalating prices, significantly benefiting Taiwanese suppliers in the supply chain.

Main Body

The escalating demands of AI servers and cloud infrastructure continue to expand global computing power needs. By 2025, the PCB industry is projected to undergo structural growth, with AI training server modules potentially reaching prices of $3 million. This is fueling a move towards PCBs with 20 to 40 or more layers, and a comprehensive upgrade of material specifications to M9 standards, marking a competitive battleground for suppliers. NVIDIA's latest Rubin NVL144 and GB300 platforms are incorporating 44-layer Midplane and HDI technology, boosting the value of materials such as CCL and copper foil by more than threefold. Meanwhile, Google's TPU V6p and AWS's Trainium2 ASIC servers are integrating M9 and HVLP4 copper foil, indicating that material upgrades have transitioned from optional to widespread deployment. For suppliers mastering M7 to M9 materials, the next three years will see the release of significant market dividends.

Persistent supply constraints have become the norm, with crucial materials like T-glass and HVLP4 copper foil exacerbating the situation. BT and ABF substrate manufacturers are now competitively bidding for allocations. Studies predict the T-glass shortfall will persist until Q1 2026, and demand for HVLP copper foil will rise from 400 tons to 800-850 tons monthly, clearly outstripping supply capabilities. This shortage pushes prices higher, with BT and ABF board prices increasing by 5%-20% since Q3. Analysts anticipate a continued expansion in profit margins. For Taiwanese manufacturers with robust supply capabilities, this boosts order stability and grants price-setting power, enhancing both performance and profitability.

In response, Taiwanese PCB and material manufacturers are expanding capacities and positioning globally amidst structural upgrades and material bottlenecks. Kinpo Electronics has issued USD 3 billion in convertible bonds to expand AI server production lines, emerging as a primary PCB partner for AWS's Trainium supply chain. Taiwan Copper Clad Laminate Co. has revised its 2025 capacity to 76 million sheets with a notable increase in M9 material shipments. Ta Ya Electric Wire & Cable Co. is focusing on its Thailand facility as a springboard for global positioning, while Golden Trust Cord Co. has secured certification from three major CCL manufacturers, with special copper foil expected to constitute 100% of output by 2026. These companies control essential materials for upgrading AI servers and switches and highlight Taiwan's shift from a following to a leading role in the global supply chain.

The AI revolution is reshaping the global hardware supply chain structure. From server specification upgrades to material shortages and increased Taiwanese capacity, every trend intertwines to elevate valuations and corporate profitability. Investors should continuously monitor core stocks with advanced material supply capabilities and capacity expansion plans. Their standing in the global AI supply chain will determine stock price ceilings and long-term value over the upcoming three years.

Key Insights Table

Aspect	Description
Key Fact 1	AI servers demand is driving a structural growth in PCB industry.
Key Fact 2	Taiwanese suppliers benefit from price increase due to material shortages.

Last edited at：2025/9/27