TAIPEI (Taiwan News) — Taiwan’s printed circuit board industry surged to a record NT$1.22 trillion (US$40.62 billion) in output value last year, up 8.1% year-on-year, Taiwan Printed Circuit Association reported Monday.

The TPCA, in a joint analysis with Industrial Technology Research Institute, projected continued momentum this year, with the PCB sector expected to grow 5.8% to NT$1.29 trillion on the back of AI servers, high-performance computing, edge AI, and expanded Southeast Asian capacity, per CNA.

In the materials segment, Taiwan’s PCB material output reached NT$346.3 billion last year, up 13.4% from the previous year. Rigid board materials accounted for over half of this total, with increases in demand for high-end copper-clad laminates (CCL) and low-loss materials, both critical for high-speed data transmission and AI server applications.

Suppliers are accelerating investment in advanced materials, such as quartz glass fiber and transparent polyimide, to serve emerging sectors like satellite communications and wearables, per UDN. Flexible board materials are also gaining ground in smart glasses and other next-gen devices.

Taiwan’s PCB machinery output was NT$59.5 billion last year, up 6.3%, driven by demand for high-layer and high-density process tools needed in AI manufacturing. The sector is expected to grow 7.4% this year to NT$63.9 billion.

The association said AI, HPC, and advanced packaging technologies like Chip-on-Wafer-on-Substrate (CoWoS) are fueling new equipment demand. Taiwanese firms, including C Sun Manufacturing, are pivoting toward these high-end applications, forming alliances with global semiconductor companies.

Southeast Asia expansion has become a key strategy for Taiwan’s PCB supply chain in response to geopolitical risks. Major production sites are being established in Thailand and Vietnam, with Elite Material preparing to produce 600,000 CCL units per month in Malaysia.