en.Wedoany.com Reported - The West Asian conflict, compounded by surging demand for AI servers, is triggering a global supply shortage of printed circuit boards (PCBs), driving up prices across the electronics industry.
Printed circuit boards are the hardware platforms that mount components in electronic products. The shortage stems primarily from rising raw material costs, supply chain disruptions on key shipping routes, and components being continuously diverted to high-end AI hardware.
The shortage comes at a critical juncture for India's industry. Amid rising domestic demand, several major investments exceeding Rs 15,000 crore are in the pipeline under the Electronics Components Manufacturing Scheme (ECMS).
Jasbir Singh Gujral, Managing Director of electronic manufacturing services company Syrma SGS Technology, stated that Iran's recent strike on facilities in Saudi Arabia has triggered a shortage of certain chemicals used in PCB manufacturing. He said, "Material cost pressures will persist this quarter and next. Due to a facility in Saudi Arabia being hit by an Iranian attack, PCBs have suddenly fallen into shortage. That facility controlled 80% of the supply of a specialty chemical required for PCB manufacturing."
Syrma SGS is one of the applicants under the government's ECMS scheme and has received approval for PCB production. Civil construction of the company's proposed PCB plant is 70% complete, with the remaining 30% to be finished by the end of this month. Trial production is expected between January and March, with commercial production commencing in fiscal year 2027-28 and full-scale production in 2028-29.
ELCINA, the electronic components manufacturers' body, stated that key raw materials used in PCB manufacturing have a high dependence on imports, including Copper Clad Laminate Chemicals. According to the body, Wipro and SGS Syrma are setting up the first copper clad laminate (CCL) manufacturing plants; photoresists are 100% import-dependent, and for plating chemicals (copper, nickel, gold), etching chemicals, surface finishing, and cleaning and pretreatment, local capacity stands at only 20% to 40%, making capacity expansion essential.
Rajoo Goel, Secretary General of ELCINA, said that over the past 8-9 months, costs have risen for every critical raw material: low-bromine epoxy resin is up about 70%, JUSHI 7628 glass fabric has doubled in 8 months, and copper foil and electrolytic copper costs have risen by more than 30%. Since January 2026, prices have surged sharply, with cost pressures across the entire PCB raw material bill of materials being released all at once.
Goel also stated that AI server demand is absorbing PCB supply capacity, while demand for power electronics and energy-related products (such as smart meters, power management systems, and electric vehicle systems) is growing at a rate of 30% to 40%, and global PCB suppliers have raised prices by more than 20%. He called for urgent measures to accelerate ongoing CCL manufacturing projects, ensure capital investment, equipment, and technology transfers are not delayed, and implement the 12 to 14 bare PCB manufacturing units approved under the ECMS scheme.
