04. June 2026

PCB Material Shortages and Rising Prices: The Electronics Industry Braces for Further Challenges

PCB manufacturers worldwide are facing rising material costs, extended lead times, and growing uncertainty across supply chains. A combination of factors—including the rapid expansion of artificial intelligence, shortages of glass fiber materials, and geopolitical tensions in the Middle East—is putting unprecedented pressure on the industry.

According to experts, PCB material shortages are no longer limited to specialty materials used in high-end applications. Today, PCB material shortages are increasingly affecting standard FR-4 laminates as well, creating challenges for manufacturers across the electronics sector.

How PCB Material Shortages Are Being Driven by AI Infrastructure

One of the primary drivers behind current PCB material shortages is the unprecedented growth of artificial intelligence and data center investments.

"The key factor is the ongoing and rapid global expansion of AI infrastructure and data centers. AI hardware requires large quantities of high-performance PCB materials, including low-loss laminates, specialty glass fabrics, and heavy copper-clad laminates," explains Raymond Goh, Chief Operating Officer at Confidee.

According to Goh, the problem has gradually expanded from a narrow range of high-frequency materials to virtually the entire PCB materials segment, including standard FR-4.

Analysts at TrendForce also point out that AI investments are affecting the entire electronics supply chain—from semiconductors and substrates to PCB materials. As a result, PCB material shortages are becoming a concern for a growing number of manufacturers worldwide.

A similar view was expressed by Christophe Fouquet, CEO of Dutch semiconductor equipment manufacturer ASML. According to Reuters, demand for AI-related technologies is growing faster than manufacturing infrastructure can respond, meaning that PCB material shortages and capacity constraints are likely to continue throughout the supply chain.

Suppliers Are Operating with Minimal Inventories

"Suppliers today operate with minimal inventory levels, sometimes only a few days of stock—or none at all. Materials are shipped immediately after production," says Raymond Goh, describing the current situation among laminate manufacturers.

According to him, laminate suppliers are implementing allocation programs that limit customer purchases based on historical consumption levels.This means that even companies willing to pay higher prices cannot be certain they will secure the quantities they need. In many cases, PCB material shortages are forcing buyers to place orders much earlier than in previous years.

European Manufacturers Respond to PCB Material Shortages

Although electronics manufacturers are struggling with higher material costs and increasingly complex supply chains, demand continues to grow in several market segments.

"Activity is accelerating and many exciting projects are moving forward," says Andrea Queirolo, Country Manager for Italy at Confidee. According to Queirolo, this trend was clearly visible at this year's SPS Italia exhibition in Parma and Focus on PCB in Vicenza, two of Europe's most important electronics industry events.

"It was fascinating to experience firsthand the growing focus on artificial intelligence, cybersecurity, advanced PCB technologies, and regulatory-compliant supply chains during these events," Queirolo notes.

While some industries remain cautious due to economic uncertainty, defense, aerospace, industrial automation, and advanced electronics continue to generate new projects and investments.

"In defense, aerospace, industrial automation, and advanced electronics, we continue to see strong demand for quality, traceability, and secure supply chain management. Discussions at SPS Italia and Focus on PCB clearly demonstrated that companies are preparing for the future despite operating in a challenging market environment," adds Queirolo.

These industries are also contributing to PCB material shortages by increasing demand for advanced laminates, specialty glass fabrics, and high-performance PCB technologies.

PCB Material Shortages kvalita pcb díky materiálu FR4

Glass Fiber PCB Material Shortages Extend Lead Times

Confidee has been highlighting challenges in the PCB materials market for some time.

"Lead times for advanced laminates have reached up to 140 days," Raymond Goh reported earlier this year.

The most affected materials include high-Tg laminates and low-dielectric-constant materials used in AI servers, telecommunications equipment, and networking infrastructure.

According to Goh, the shortages have now spread to standard FR-4 materials as well, with lead times increasing from just a few days to approximately four weeks. These ongoing PCB material shortages are making production planning increasingly difficult for electronics manufacturers.

Middle East Conflict Intensifies PCB Material Shortages

The situation has been further complicated by the ongoing conflict in the Middle East.

Reuters reports that PCB prices rose by as much as 40% in April compared with March. Analysts at Goldman Sachs attribute the increase to a combination of strong AI-driven demand and ongoing disruptions in raw material supply chains.

Particularly severe shortages have been reported for epoxy resins, glass fibers, and copper foils.

A senior executive at South Korean PCB manufacturer Daeduck Electronics told Reuters that lead times for epoxy materials have increased from three weeks to fifteen weeks."My priority has changed. Instead of meeting customers, I am now focused on managing relationships with suppliers," said the executive, who requested anonymity due to the sensitivity of the issue.

The Middle East conflict has intensified existing PCB material shortages, creating additional uncertainty for both suppliers and manufacturers.

Copper Prices Have Increased Significantly

Copper pricing has become another major concern.

According to Reuters, copper foil prices have increased by as much as 30% since the beginning of the year. This is particularly significant because copper accounts for approximately 60% of raw material costs in PCB manufacturing.

Victory Giant Technology, a major PCB supplier to NVIDIA, has also warned about the potential for further price increases. The company noted that continued geopolitical tensions could drive up the costs of both resins and copper, potentially worsening PCB material shortages in the coming months.

How Companies Can Prepare for PCB Material Shortages

According to Raymond Goh, the current challenges cannot be resolved quickly. However, companies can take steps to mitigate the risks.

"Navigating today's volatile environment requires proactive planning, realistic forecasting, and close collaboration across the entire supply chain," says the Confidee COO.

Confidee recommends several key measures:

Using alternative laminates and prepregs
Implementing dual sourcing strategies for critical products
Releasing orders earlier
Building larger material inventories
Adopting longer-term production planning

These actions can help companies reduce the impact of PCB material shortages and improve supply chain resilience.

Outlook

Available data suggest that PCB material shortages are unlikely to disappear in the coming months. On the contrary, the combination of growing AI-driven demand, limited manufacturing capacity, and geopolitical risks indicates that electronics manufacturers will need to place far greater emphasis on procurement planning and supply chain management than in previous years.

For many companies, supply chain resilience is rapidly becoming just as important as technological innovation itself, as PCB material shortages continue to reshape the global electronics industry.

Other References