The Taiwan Printed Circuit Association (TPCA), together with ITRI’s Industrial Economics and Knowledge Center (IEK), released two new reports—2025 China PCB Industry Outlook and 2025 Japan–Korea PCB Industry Outlook—offering a concise assessment of how AI-driven applications are reshaping the PCB sectors across East Asia. Rising demand for AI servers, high-performance computing (HPC), data centers, and electric vehicles is accelerating market realignment, with China, Japan, and South Korea each entering distinct growth paths that will influence the future structure of Asia’s electronics supply chain.

China: AI Servers Propel Rapid Expansion; Overseas Capacity Moves Faster

China remains the world’s largest PCB producer, holding 34.9% global market share in 2024 with an output value of USD 27.95 billion. Its 2025 output is projected to surge 22.3% to USD 34.18 billion, pushing market share to 37.6%.

Growth is driven primarily by AI servers, data-center infrastructure, and EV-related applications, which are sharply increasing demand for high-end HDI and multilayer boards. Supported by policy incentives, capital, and a massive domestic market, Chinese PCB makers are upgrading product mixes and accelerating overseas expansion.

Thailand has become the preferred destination for production diversification, with Chinese PCB output there estimated at 1.7% of total production. While early operational challenges may persist, globalized capacity deployment is expected to mitigate geopolitical risk and broaden customer reach.

Japan: AI Server Boom Triggers New Substrate-Expansion Cycle

Japan, the world’s third-largest PCB producer, generated USD 11.53 billion in output in 2024 (14.4% global share). Despite headwinds in automotive electronics, demand from AI chips and HDD applications is supporting steady recovery. Japan’s PCB output is forecast to return to growth in 2025 at USD 11.82 billion, reaching USD 12.35 billion in 2026.

FPCs remain Japan’s largest product category (51.3% of output), followed by substrates (29.5%), reflecting its strong semiconductor-packaging foundation. AI server growth is driving sharp increases in demand for ABF and AI-chip substrates, where Japan holds clear technological leadership.

Ibiden commands roughly 70% of the AI GPU substrate market. TOPPAN and Kyocera are expanding ABF substrate lines to meet rising cloud and semiconductor demand. Japan’s government is also reinforcing advanced-packaging competitiveness through targeted subsidies and supply-chain security initiatives.

South Korea: Server and Memory Demand Support Steady Growth; Advanced Substrates Dominate

South Korea ranks fourth globally, with PCB output of USD 7.86 billion in 2024 (9.8% share). AI server and memory demand are expected to drive moderate growth to USD 7.94 billion in 2025 and USD 8.16 billion in 2026.

Korea’s PCB industry is heavily concentrated in semiconductor applications, with substrates accounting for 45% of output. SEMCO continues expanding ABF capacity for AI GPU and server platforms; Simmtech is advancing next-generation memory-packaging substrates; Daeduck is targeting AI-server and autonomous-vehicle chips; Korea Circuit’s utilization is rising on stronger networking-equipment orders; and LG Innotek’s substrate business has improved on early iPhone pull-ins.

Overseas, Korean PCB makers leverage deep supply-chain roots in Vietnam, while Malaysia has become a major expansion hub for BT substrates supporting future memory-market needs.

TPCA Insight: Taiwan Must Strengthen Technology Depth and Risk Preparedness

China, Japan, and South Korea are forming three distinct AI-driven development models: China’s rapid scale expansion, Japan’s advanced-substrate specialization, and Korea’s stronghold in memory and server platforms. Together, they frame the next phase of Asia’s high-end manufacturing competition.

As AI server demand escalates, high-end PCB materials—especially ABF substrates—face supply tightness. Japanese suppliers remain ahead in process capability and product stability, and their expansion cadence is already influencing AI-server delivery schedules. This is prompting semiconductor and end-device makers to prioritize upstream material-diversification strategies.

TPCA notes that Taiwan plays a critical role in the global AI-server ecosystem through its semiconductor and PCB sectors. To stay competitive amid Asia’s shifting landscape, Taiwan must accelerate advances in advanced-packaging technologies and high-end materials while strengthening geopolitical and market-risk strategies.