Industry sources and executives report that supply chain disruptions stemming from Middle East conflicts have driven up prices for printed circuit boards (PCBs). This interruption presents a new challenge for electronics manufacturers already contending with soaring memory chip costs and underscores the widening impact of regional tensions, which have severely disrupted supply chains for materials including plastics and oil.

Fueled by growing demand for artificial intelligence servers, PCB prices have been climbing since the end of last year. Three industry sources indicated that since March, demand has accelerated sharply as manufacturers rush to secure raw material supplies and mitigate the impact of rising costs. Analysts at Goldman Sachs noted in a recent report that PCB prices increased by 40% in April alone compared to March.

They added that cloud service providers are willing to accept further price increases, anticipating that demand will outpace supply in the coming years. One source stated that shortages of other key materials, such as glass fiber and copper foil, have also contributed significantly to the PCB price surge. The source further noted that copper foil prices have surged 30% year-to-date, with the increase accelerating in March.

According to a recent Prismark report, the global PCB industry is projected to grow by 12.5% to $95.8 billion by 2026. An executive from South Korean PCB manufacturer Daeduck Electronics, whose clients include Samsung Electronics, SK Hynix, and AMD, told Reuters that the company has begun discussions with customers about price increases.

Goldman Sachs research highlights that the global AI server PCB market is expected to grow by over 110% during 2026-2027, whereas growth in demand for traditional PCBs is only around 3%.

**Hong Kong-listed PCB-related stocks:**

**DELTON (01989):** DELTON previously issued a positive profit alert, forecasting net profit attributable to shareholders of RMB 380-400 million for the first quarter of 2026, representing a year-on-year increase of 58.09%-66.41%. This is primarily driven by three factors: the booming market for computing power PCBs, capacity release from its Thailand factory, and cost optimization at its Huangshi subsidiary. The company is scheduled to hold a board meeting on April 29 to review and approve its first-quarter results. Against the backdrop of tight supply for high-end AI PCBs, the company is well-positioned to engage more AI clients through its advanced technological capabilities.

**VGT (02476):** VGT specializes in the research, development, production, and sale of high-end, high-density interconnect, and high-layer count PCBs. After years of technological development, it has become a core supplier in the global AI and high-performance computing PCB sector. Financial reports show that VGT's revenue for 2025 was RMB 19.292 billion, a year-on-year increase of 79.77%, while net profit attributable to shareholders was RMB 4.312 billion, surging 273.52% year-on-year. VGT stated that with the accelerating penetration of AI technology across various sectors and the continuous expansion of global AI infrastructure and computing power demand, the company has deepened ties with leading international customers, optimized its product mix, and steadily advanced its global footprint, leading to leapfrog growth in operational performance.

**Hong Kong-listed PCB-related stocks (continued):**

**Da Zu Shu Kong (03200):** Da Zu Shu Kong has delivered multiple ultra-high-speed drilling machines to IC substrate manufacturers such as AT&S and AKM Meadville. Currently, these ultra-high-speed machines are only used for producing mSAP process products for 1.6T optical modules. Management believes that whether AI PCB manufacturers adopt ultra-high-speed technology depends on if NVIDIA adopts M9 copper-clad laminate + Q-glass material, which they see as a matter of time. Shenwan Hongyuan points out that the company has built a comprehensive product portfolio covering various PCB segments, including multi-layer boards, HDI boards, IC substrates, flexible boards, and rigid-flex boards, enabling it to provide tailored, one-stop process solutions for clients across different PCB sectors. Management expects that as more Chinese PCB manufacturers begin capacity expansion around September-October this year, the revenue contribution from AI products could reach 50%-60% by 2026, driving a quarterly improvement in gross margin in the second half of the year.

**Kingboard Laminates (01888):** In early April, leading copper-clad laminate (CCL) manufacturer Kingboard Laminates issued a notice announcing a uniform 10% price increase for sheet materials and PP (prepreg). This adjustment was attributed to significant price increases and tight supply conditions for key upstream raw materials like resin and electronic glass fiber cloth.

**Kingboard Holdings (00148):** Kingboard recently issued a price increase notice, raising prices for all sheet materials and PP by 10%. Furthermore, other high-end CCL suppliers, including Elite Material Co., Ltd., have also recently begun communicating price increases to their customers.