From the U.S.–China trade conflict to expanding global tariff barriers, geopolitics is rapidly reshaping the global printed circuit board (PCB) industry landscape. As worldwide supply chains undergo accelerated restructuring, the Taiwan–U.S. import and export structure is also experiencing a structural shift. To help Taiwanese companies capture opportunities arising from supply chain realignment — and in recognition of the United States’ central role in the global market — the Taiwan Printed Circuit Association (TPCA) will organize a delegation to APEX EXPO 2026, taking place March 17–19 in Anaheim, California. TPCA will establish a dedicated Taiwan Advanced Packaging Hub, bringing together  supply chain players to showcase Taiwan’s technological strengths and accelerate Taiwan–U.S. business collaboration.
 

Tariffs and Geopolitics Drive Supply Chain Realignment; Taiwan–U.S. PCB Trade Structure Shifts

     Historically, the United States was once the global leader in PCB production, ranking first worldwide for many years. However, since the late 1990s, the industry has undergone significant consolidation and offshore migration due to globalization, the rise of asset-light business models, the dot-com bubble, and the rapid expansion of manufacturing capacity in mainland China. Today, the U.S. PCB sector has transitioned from high-volume manufacturing to a niche-focused market structure.

     According to data from TPCA and the Industry, Science and Technology International Strategy Center (ISTI) of ITRI, global output value of U.S.-based PCB manufacturers reached approximately US$4.01 billion in 2025, representing about 4.2% of global market share and ranking fifth worldwide. Product portfolios are highly concentrated in multilayer boards and HDI, primarily serving high-reliability, high-value applications such as defense and aerospace, industrial control, and medical electronics — closely aligned with U.S. domestic defense demand. Looking ahead to 2026, supported by defense procurement and strong infrastructure investment including data centers, U.S. PCB output is projected to grow by another 10%, surpassing US$4.4 billion.

     Under the latest Taiwan–U.S. tariff arrangement, tariffs on Taiwan-made PCBs exported to the United States are expected to be reduced from 20% to 15%, placing Taiwan on par with Japan. By contrast, PCBs produced in mainland China face stacked punitive tariffs, with effective rates reaching as high as 45%. Meanwhile, U.S. customers in high-sensitivity sectors — including AI servers and low-Earth-orbit satellite systems — are accelerating “non-China manufacturing” supply chain strategies, creating significant order-transfer opportunities for Taiwan and other regions.

     As a result, Taiwan surpassed mainland China in 2025 to become the largest source of PCB imports into the United States. Mexico, benefiting from geographic proximity, remains the leading export destination for U.S. PCB shipments, underscoring the growing integration of the North American regional supply chain. Taiwan’s export data further confirms this shift: PCB exports to mainland China declined from 44% of total exports in 2020 to 27% in 2025, while exports to the United States doubled from 7% to 16% over the same period. Taiwanese manufacturers are also accelerating investments in Southeast Asia to build geographically diversified production networks.

U.S. Adopts Dual-Track Policy to Support PCB Production; Investment Decisions Still Require Commercial Discipline

     As the United States advances re-industrialization policies, it is deploying a dual-track strategy combining regulatory controls and incentive programs to encourage domestic manufacturing. On the regulatory side, the National Defense Authorization Act restricts defense procurement of PCBs originating from China, Russia, Iran, and North Korea, establishing a national-security-oriented supply chain framework while tariff barriers raise PCB import costs.

     On the incentive side, although a PCB-specific industry bill has not yet been enacted, companies may access funding through the Defense Production Act and the CHIPS Act. Under the Defense Production Act, U.S. PCB manufacturers including TTM, GreenSource Fabrication, and Calumet have each received grants ranging from US$30–40 million to expand advanced production lines supporting defense demand. Under the CHIPS Act, Absolics has secured US$75 million for glass substrate R&D. Industry groups continue to advocate broader incentive measures — including a 25% investment tax credit and a US$3 billion PCB fund — but these proposals remain at the policy advocacy stage.

Regarding tariffs, PCB transactions are typically conducted on an FOB basis, meaning tariff costs are generally borne by buyers. As PCBs are electronic components, even if total U.S. PCB imports reach US$3 billion in 2025, this represents only a small portion of the roughly US$29 billion global output of Taiwanese PCB manufacturers, limiting direct exposure. In addition, major downstream products incorporating Taiwanese PCBs — including smartphones, servers, and notebook computers — currently enjoy zero-tariff status when imported into the United States. Most PCBs therefore enter the U.S. market indirectly as part of assembled end products, effectively bypassing component-level tariff barriers.

     From a manufacturing perspective, the PCB industry is highly competitive and cost-sensitive. Compared with U.S. production, Asia continues to hold clear advantages in cost structure, production efficiency, supply chain density, and upstream–downstream ecosystem completeness, making near-term substitution unlikely. Current Taiwanese PCB investments in the United States are concentrated around Silicon Valley and primarily focused on prototyping and customer support centers rather than mass production. Over the medium to long term, any shift from service presence to manufacturing operations will depend on rigorous commercial evaluation — including return on investment, competitor positioning, and customer bargaining dynamics.

APEX EXPO 2026: Showcasing Taiwan’s Advanced Packaging Strength

     Taiwan’s semiconductor and PCB sectors play a critical role in the global AI server supply chain. Taiwan ranks among the world’s top PCB producers, while holding leading global market shares of approximately 69% in semiconductor manufacturing and 51% in IC packaging and testing. Taiwan also accounts for about 33.5% of the global IC substrate market. As AI and heterogeneous integration accelerate, Taiwan’s market position is expected to strengthen further, reinforcing the strategic importance of its PCB industry.

In response to ongoing global supply chain restructuring, TPCA continues to deepen Taiwan–U.S. industry engagement. In 2025, TPCA hosted the Taiwan High Tech Forum in California to systematically present Taiwan’s advanced PCB and advanced packaging capabilities, and participated in the Taiwan Expo in Texas to expand outreach to U.S. buyers and partners.