While in China, manufacturers are quoting 2028 delivery dates for orders placed last month, in India the shortage comes at a critical time, when investments of US$1.5 billion (₹ 150 billion) are in the pipeline under the ECMS.
As artificial intelligence (AI) data centres consume massive amounts of printed circuit boards (PCBs), with a single AI server rack using tens of thousands of boards, the PCB industry is seeing an unusual demand-side disruption.
On the other hand, we see a supply-side disruption as the Jubail Petrochemical complex in Jubail in Saudi Arabia, which supplies seventy to eighty percent of high-purity copper-clad laminates, has gone offline since the conflict in West Asia began.
According to the Indian Printed Circuit Association (IPCA), prices of copper-clad laminates have increased 300 per cent over the past year, with some reports showing a forty percent increase in a single month.
For standard flame retardant 4 (FR-4) laminates, the lead time is now six to eight weeks, whereas for advanced low-loss laminates, it’s 14-18 weeks. Moreover, the capacity that might return early on will first serve the demands in the AI sector, extending the squeeze amongst non-AI applicants well into 2027.
Industry bodies, which warn about a 30-40 percent decline in output, have approached the government to provide temporary relief measures such as exemption from import duties, to manufacturers to help them to deal with the supply shock.
The supply chain constraints have come at a time when India is attempting to reinvigorate its electronics manufacturing through the Electronic Component Manufacturing Scheme (ECMS).
