AI server demand drives Taiwan PCB output toward NT$256.1B in 2Q26

Surging demand for high-layer-count HDI and substrate-like PCBs from AI servers is pushing Taiwan, China’s PCB sector to a technological inflection point. Upstream ABF substrate shortages have triggered capacity expansions by Ajinomoto and local Taiwanese suppliers, yet equipment lead times now exceed 18 months—creating de facto supply bottlenecks. Concurrently, U.S. CHIPS Act restrictions on advanced packaging are inflating compliance costs, complicating Taiwanese firms’ overseas fab strategies. Korean and Japanese rivals are capitalizing by deepening vertical integration with NVIDIA and AMD to bypass Taiwan-based intermediaries. Over the next 12–24 months, persistent material constraints could systematically delay AI hardware deliveries, forcing design shifts toward SiP or chiplet architectures. This would erode traditional PCB content value and potentially redraw the global footprint of back-end semiconductor manufacturing.