IPC International Community magazine an association member publication
Issue link: https://iconnect007.uberflip.com/i/1546209
AUGUST 2026 I I-CONNECT007 MAGAZINE 73 Several indicators support this assessment: • Multiple rounds of price increases across the supply chain • Extended lead times for both standard and advanced materials • Significant stockpiling activity across the supply chain • Major capital investment programmes by laminate manufacturers and upstream raw materials producers • Continued reports of raw material shortages and allocation enforcement • Ongoing acceleration of AI-driven demand Even with additional capacity throughout the supply chain, demand growth appears to be outpacing the industry's ability to respond. Preparing for a Prolonged Supply Constraint The key challenge is shifting from price manage- ment to supply assurance. Transactional purchasing models, short forecast horizons, and single-source material strategies are becoming riskier as avail- ability replaces price as the industry's primary constraint. Companies that secure allocation, maintain material optionality, and engage proac- tively with suppliers will be better positioned than those relying solely on price-driven procurement strategies. Organisations should consider: • Longer-term forecasting and demand visibility • Earlier purchasing commitments • Qualification of alternative materials and suppliers • Strategic supplier partnerships • Design-for-availability principles during product development • Ensure sufficient working capital to support higher inventory values and longer procure- ment cycles The warning signs have been visible for months, but we are likely to enter the most challenging phase in the coming months of 2026, and which will likely persist into 2028. Don't wait. Resilience programmes, material qualifications, and alterna- tive supply chains require time to implement, and options are diminishing rapidly. Those waiting for shortages to become apparent in their own opera- tions may discover that the market has already moved beyond the point at which effective mitiga- tion is possible. I-CONNECT007 Resources and Further Reading Industry Supply Chain and Lead Time Reports • "AI Demand Tightens CCL Supply, Drives Advance Orders, Price Hikes, and Expansion," TrendForce, May 5, 2026. • "Global Shortage of Glass Fiber Cloth Continues," by Raymond Goh, CONFIDEE, March 4, 2026. • "How OEMs Can Navigate AI-Driven PCB and CCL Supply Constraints," Vexos. • Market and Capacity Expansion Information: EMC Investor Relations • "Laminate Industry Capacity Expansion Report- ing," DigiTimes. • Industry Associations and Market Data: Taiwan Printed Circuit Association and Global Electronics Association. Mark Goodwin is chief oper- ating officer, EMEA & USA, Ventec International Group. " The key challenge is shifting from price management to supply assurance."