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52 I-CONNECT007 MAGAZINE I MAY 2026 Supply Tightens, Prices Surge Again and Again Over the past several months, there have been rapid, repeated price increases across the base materials supply chain, driven by rising copper costs (see sidebar) and an industry-wide fiberglass shortage. Given current resource scarcity, a partial summary of recent price increases based on cor- porate announcements is as follows (Table 1). The pace and frequency of these increases point to more than normal market fluctuation, which ranges between ±5 to ±15% year over year, according to data from the London Metal Ex- change (LME), the U.S. Geological Survey (USGS), and the World Bank Commodity Price Data. We're likely to see more price increases in the coming months, with no forecast for when market stasis might be reached. At the same time, changes in the global supply base are reinforcing this strain. Japanese glass manufacturers, for example, are pivoting toward higher-value glass semiconductor substrates, further narrowing the glass supply available for supporting products that are less complex to build. Geopolitical risks such as the ongoing U.S. con- flict with Iran have introduced volatility, not only into energy markets, but also global logistics with blocks and delays at the Strait of Hormuz, adding further uncertainty to an already stressed electron- ics supply chain. If You're Not AI, Do You Still Matter? High-end and AI applications are not only driv- ing growth but competing for and often securing the materials and capacity the rest of the industry depends on. So, there is an incentive to secure a position within the AI ecosystem. The margins, growth, and visibility are all there. But what hap- pens to everything else? A significant portion of the global PCB market supports applications beyond AI and high-speed computing, conservatively estimated at over 50%.3 These include automotive systems (non- autonomous or EV), industrial controls, consumer electronics, appliances, and so many other every- day products. While some of these segments are evolving to incorporate more advanced electron- The Copper Conundrum Copper prices have climbed sharply over the past year due to both structural and short-term market forces. Supply has been constrained by mine disruptions, declining ore quality, and a slow pipeline of new projects, while demand is surg- ing from electrification, renewable energy, elec- tric vehicles, and expanding digital infrastruc- ture such as AI data centers. This imbalance has pushed the market into a sustained deficit. Financial dynamics, including investor flows into commodities and favorable macro conditions, have resulted in a broad repricing of copper as a critical global material. For the PCB industry, rising copper prices directly translate into higher costs for copper foil and laminates, the foundational materials of circuit board fabrication. As copper has become more expensive and volatile, laminate suppliers are passing through the increases. This puts pressure on fabricators' margins and complicates quoting and long-term pricing agreements. Tight supply conditions also affect availability and lead times for copper-clad materials. At the same time, the same demand drivers pushing copper prices higher—electronics, data infrastructure, and electrification—are increasing PCB demand, creating a dual pressure of rising input costs and high demand. Resources • "Copper Prices Have Hit Record Highs, but Smelters Face Mounting Strategic Pressures," International Energy Agency, 2024. • "Copper Outlook: Structural Deficits to Support Prices," JPMorgan Global Research, 2025. • "Copper Prices Hit Record Highs as Demand from AI and Data Centers Surges," Business Insider, 2026. • "Global Copper Supply Shortage Driven by Pro- duction Disruptions," ABC News, Oct. 7, 2025. • "Copper Reaches Record $12K per Ton as De- mand Surges," New York Post, Dec. 23, 2025.