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Global Commodity Intelligence
Q2 2025 | APRIL - JUNE
Global Commodity Intelligence
Q2 2025 | APRIL - JUNE
PCB COMMODITIES
PRINTED CIRCUIT BOARDS
OVERALL DEMAND OUTLOOK
- The PCB market is expected to grow, driven by technology advancements and strong demand in Artificial Intelligence (AI) across multiple product categories, including computers, mobile phones, PCs, laptops, and healthcare devices.
- Suppliers prioritize high-demand sectors and invest in new technologies to maintain competitiveness.
- The Electric Vehicle (EV) market is slowing, except for segments focused on Advanced Driver Assistance Systems (ADAS).
- Other industries remain flat or have experienced reduced demand due to slower economic growth.
SUPPLY
Overall PCB Lead Time
- Lead times for PCBs range from 5 to 8 weeks, depending on design complexity and specific requirements.
Copper Clad Laminate (CCL) Lead Time & Supply Constraints:
- Standard raw materials have a lead time of 1 to 2 weeks.
- Specialized high-speed, low-loss materials (e.g., low DK glass fiber supplied by EMC) are experiencing shortages, leading to longer lead times.
- EMC is expanding capacity, and the supply situation is expected to improve by June 2025.
Manufacturing Capacity in China:
- China’s PCB factories are operating at around 75% capacity.
- Some suppliers offer flexible lead times to accommodate urgent orders.
Investment Outside China:
- Thailand is emerging as a key investment destination for PCB manufacturing outside China.
- Most Thai PCB suppliers are expected to begin mass production by 2026, significantly expanding global PCB manufacturing capacity.
Supply Chain & Visibility Challenges:
- The industry continues to face challenges related to demand fluctuations, material shortages, forecasting accuracy, logistics delays, and sustainability concerns.
MARKET DYNAMICS
PCB Industry Outlook:
- Despite weak overall demand, suppliers are setting ambitious revenue targets.
- Some PCB suppliers successfully grew their revenue in 2024 by capitalizing on market shifts and emerging opportunities.
- While the market slowdown poses challenges, certain suppliers continue to sustain their performance, though uncertainty remains high.
Geopolitical & Competitive Dynamics:
- Demand for PCB manufacturing outside of China (OOC) is increasing as companies seek to diversify supply chains, avoid tariffs, and establish more cost-effective and stable production alternatives.
- Southeast Asia is emerging as a competitive region for PCB manufacturing, benefiting from this shift in supply chain strategies.
DEMAND-SIDE ANALYSIS
|
Company |
Development |
|
Automotive |
Market remains flat overall, except for Advanced Driver Assistance Systems (ADAS), which is growing steadily. However, ADAS growth is not strong enough to offset the broader automotive slowdown. |
|
Communication |
Overall demand continues to decline |
|
Consumer |
Consumer demand remains weak, with no major signs of recovery. |
|
Cloud & Server |
AI-driven demand continues to grow, supported by strong investments and technological progress across various sectors. |
|
Industrial |
Overall demand remains stable, with no significant fluctuations. |
|
Medical |
Demand is stable, with a slight increase in wearable health tech products and AI-integrated medical devices. |
PRICE
Copper Clad Laminate (CCL) Prices
- Copper prices have increased slightly compared to the previous quarter.
- Some suppliers anticipate further price hikes shortly.
Raw Material Prices:
- Epoxy resin prices remain stable, but tin and gold prices continue to rise.
- Increasing tin and gold costs will impact PCB manufacturers’ cost structures.
PCB Prices & Supplier Strategy:
- PCBs with gold finishing are expected to cost more due to rising gold prices.
- Suppliers are cautious about price adjustments, opting to absorb higher material costs rather than passing them on to customers in the current market environment.
PCB Pricing Outlook for 2025:
- Market volatility, supply chain disruptions, and fluctuating raw material costs will shape PCB pricing trends in 2025.
- AI and advanced electronics sectors are projected to drive revenue growth, offering opportunities for suppliers to focus on high-demand markets.
- Suppliers will need to stay flexible, targeting growth sectors while adjusting pricing strategies to remain competitive.
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