IPC International Community magazine an association member publication
Issue link: https://iconnect007.uberflip.com/i/1544398
APRIL 2026 I I-CONNECT007 MAGAZINE 73 have begun freezing order changes to manage speculative AI-driven demand. Industry indications suggest that supply-demand imbalances for key materials may persist through 2027. As a result, competition is shifting from pure capacity expansion toward control over critical ma- terials and supply-chain resilience. Suppliers with long-term material access and strong bargaining positions are best placed to protect margins. Is China Plus One Still Happening? Yes, but not in the way the slogan implies. The PCB industry is experiencing "China Plus Many," layered on top of "China Still." Southeast Asia is absorbing incremental capacity for risk mitigation and customer localization, while China remains indispensable for advanced technology, materials, engineering talent, and scale. PRISMARK's latest projections reflect this real- ity. While global PCB output is expected to grow strongly through 2029, the combined China-and- Taiwan share of global production is now forecast to increase, rather than decline as previously expected. In this environment, success will favor suppliers capable of operating across an interconnected global web—not those betting on a clean break from it. Conclusion: "China Plus Many," Not "China Plus One" Rather than a clean geographic decoupling, the PCB industry is evolving toward China Plus Many, layered on top of China Still. Southeast Asia is ab- sorbing incremental capacity for diversification and localization, while China remains indispensable for advanced materials, engineering talent, and next- generation process innovation. Recent PRISMARK projections reflect this reality, with the combined China-and-Taiwan share of global PCB output now expected to increase rather than decline. In this environment, long-term success will favor suppliers that can operate across an intercon- nected global web, not those betting on a simple or rapid exit from China. I-CONNECT007 References 1. "Don't just focus on memory! AI infrastructure is igniting a supercycle in PCB and CCL. Goldman Sachs: PCB and CCL are entering a super-cycle," by Chen Yanqi, Commercial Times, Jan. 22, 2026. 2. "AI behemouth! Goldman Sachs predicts explosive growth for CCLS, specifically those few the whole chain follows the rise," China Times, Feb. 1, 2026. Figure 2: 2029E: Global PCB production by geography. (Source: PRISMARK 2026 data) Manfred Huschka