According to a joint analysis released by the Taiwan Printed Circuit Association (TPCA) and the Industrial Economics and Knowledge Center (IEK) of ITRI, Taiwan’s PCB industry is projected to reach a total production value of NT$1.29 trillion in 2025, marking an annual growth rate of 5.8%. In 2024, the industry recorded a total value of NT$1.22 trillion, up 8.1% year-on-year, driven primarily by surging demand for AI server applications. Related sectors in materials and equipment also benefited, with companies strongly tied to AI applications generally reporting revenue growth.

Material Upgrades and High-End Applications Drive Output Expansion

In the materials sector, Taiwan’s total PCB material output value reached NT$346.3 billion in 2024, a year-on-year increase of 13.4%. Rigid board materials dominated the market, accounting for over 50% of total output. There was particularly strong demand for high-end copper-clad laminates (CCL) and low-loss (Low DK) materials, both critical to high-speed transmission and AI server applications. Taiwanese manufacturers hold competitive advantages in high-frequency CCL materials such as M7 and M8, which are widely used in 800G switches and AI/HPC servers.

Fiberglass and copper foil suppliers have also increased investments in R&D and production capacity to meet the evolving needs of AI and high-frequency applications. Some companies have begun introducing new materials such as quartz fiber and transparent polyimide (PI), expanding use cases into satellite communications and wearable devices, reflecting a trend toward product diversification.

While rigid board materials have shown strong performance in recent years, flexible PCB materials are also finding new applications in smart glasses and wearables. Multiple companies are expected to launch smart glasses in 2025, incorporating generative AI and low-power chips to enhance user experience. Taiwanese firms have already begun developing and supplying relevant materials, including transparent PI and low-loss flexible substrates. The smart glasses market is expected to experience significant growth in 2025, further driving demand for related flexible materials.

Overall, Taiwan’s PCB materials market is projected to grow by 8.5% in 2025, reaching NT$375.7 billion.

Equipment Makers Shift Focus to High-End and Backend Packaging Fields

Taiwan’s PCB equipment sector achieved an output value of NT$59.5 billion in 2024, growing by 6.3% year-on-year. The growth was fueled by increased demand for advanced, high-density manufacturing equipment for AI-related PCB processes. Key product segments include mechanical and laser drilling and shaping tools (19.2%), wet processing equipment (15.0%), probes and cutting tools (12.2%), and automation and conveyance systems (11.3%).

Looking ahead to 2025, Taiwan’s PCB equipment output is forecasted to reach NT$63.9 billion, representing a 7.4% annual increase, supported by the ramp-up of advanced processes and new production capacities in Southeast Asia.

Of particular note, the booming semiconductor industry—driven by AI, high-performance computing (HPC), and advanced packaging technologies such as CoWoS and fan-out—has created new equipment demand. This is drawing traditional PCB equipment makers into the semiconductor sector. Faced with intense competition in low-to-mid-end markets, some Taiwanese equipment suppliers, including Chime Ball, U-Tech, Ta Liang, All Ring, and Syntec, are shifting toward high-barrier fields like advanced packaging (e.g., CoWoS, FOPLP) and precision metrology, and establishing partnerships with international semiconductor players.

Southeast Asia Expansion Becomes a Strategic Response to Geopolitical Risks

Geopolitical tensions and U.S.-China tech policy shifts are reshaping global supply chains. Taiwanese PCB firms are increasingly relocating part of their capacity to Southeast Asia to enhance resilience against global risks. Thailand, Vietnam, and Malaysia have become primary expansion targets, with multiple Taiwanese companies establishing plants and entering pilot production phases.

Material and equipment suppliers are also set to release new overseas production capacity in 2025. For example, Taiwan Union Technology Corporation (TUC) plans to ramp up CCL production in Malaysia to 600,000 sheets per month, while Elite Material Co. and ITEQ Corporation are expanding their facilities in Thailand to supply materials for servers and communication devices. Equipment manufacturers are also following customers to Southeast Asia, primarily targeting cities around Bangkok, Thailand. With the PCB supply chain gradually taking shape, Thailand’s role as a major PCB manufacturing hub is poised for rapid growth.

Taiwan’s PCB Ecosystem Positioned for Steady Global Growth.With sustained demand from AI servers, high-performance computing, and Edge AI applications, Taiwan’s PCB industry is expected to grow steadily in 2025. Benefiting from high-end process development and new Southeast Asian capacity coming online, the domestic and overseas value of Taiwan’s PCB supply chain is forecasted to reach NT$1.29 trillion.

In the face of intense global trade tensions and shifting regional dynamics, developing long-term sustainability and risk management strategies has become a core mission for TPCA’s newly elected 12th board. TPCA plans to leverage its Sustainability Committee as a policy advisory platform, deepening dialogue between industry and government, and helping companies respond swiftly to supply chain disruptions and external shocks.

Looking forward, TPCA will focus on three strategic directions:Strengthening industrial resilience,