TPCA estimates that Taiwan's PCB output value this year will be 854.1 billion yuan. The biggest variable is ＂this＂
yahoo! news
March 3, 2025
Author: CTWANT Weekly Zheng Sinan
March 3, 2025
Author: CTWANT Weekly Zheng Sinan
[Weekly King CTWANT] The Taiwan Printed Circuit Association (TPCA) said today (3) that Taiwan's PCB output value in the fourth quarter of last year was NT$217.5 billion, a year-on-year increase of 2.8%, indicating that the market is gradually recovering. The annual output value in 2024 will reach NT$816.8 billion, an annual growth of 6.1%. Looking forward to 2025, AI servers, satellite communications and electric vehicle electrification will continue to drive market growth, and the annual output value is estimated to reach NT$854.1 billion, a year-on-year increase of 4.6%.
TPCA stated that in 2024, Taiwanese PCBs will be mainly used in communications (34.2%), computers (22.5%), semiconductors (15.5%), automobiles (12.9%), consumer electronics (9.9%) and others (5.0%).
TPCA pointed out that mobile phone boards for communication applications are still Taiwan's main PCB products. In addition, although the growth momentum of the global auto market has slowed down in recent years, with the development of electric vehicles and self-driving systems, the demand for automotive electronics remains strong. It is worth noting that although servers and satellite communications account for a small proportion of overall applications, they have seen impressive growth in the past two years.
TPCA stated that Taiwan's server PCB output value will be approximately NT$50.9 billion in 2024, a year-on-year increase of 49%, while the satellite PCB output value will reach NT$19.3 billion, a year-on-year increase of 83%.
TPCA further analyzed that in terms of the proportion of PCB products, the overall proportion of multi-layer boards (30.5%) and HDI boards (20.1%) continued to rise due to the strong demand for AI servers, automotive electronics and satellite communications. In contrast, the market share of flexible boards (24.4%) has been declining year by year due to the insufficient growth momentum of the mobile phone market and the lack of strong support from AI demand.
IC substrates (15.5%) have seen a slowdown in growth recently due to fluctuations in market demand. However, with the rapid popularization of AI applications and the continued launch of high-performance computing chips and server products, the substrate market has the opportunity to usher in a new wave of growth opportunities.
TPCA pointed out that Taiwan's PCB output value in the fourth quarter of 2024 will grow by 2.8% compared with the same period in 2023. AI servers and satellite communications are the main growth drivers, driving a significant increase in demand for high-end HDI boards, making them the products with the strongest growth in 2024. At the same time, the demand for automotive electronics continues to increase, coupled with the mild recovery of the mobile phone and memory markets, which will jointly drive the positive growth of Taiwan's PCB output value in 2024.
TPCA further stated that among them, the demand for high-end HDI was strong, increasing by 10.7% year-on-year, becoming the fastest growing area in PCB products. The multilayer board and substrate market also benefited from the demand for AI and automotive electronics, showing a steady growth trend.
Looking ahead to 2025, TPCA pointed out that global cloud service providers continue to increase capital expenditures, and countries are also actively building "sovereign AI". It is expected that the demand for AI servers will continue to expand. On the other hand, the knowledge distillation technology brought by DeepSeek can transfer large models from the cloud to the edge and deploy smaller models on devices with limited resources. It is expected to promote the accelerated popularization of AI Edge applications. Under the overall AI effect, it will further boost the market demand for HDI boards and high-layer boards. In addition, the low-orbit satellite market is developing rapidly due to the continuous decline in rocket launch costs, and it is estimated that the demand for related satellite PCBs will also be promising.
However, TPCA believes that US policy variables remain the biggest uncertainty in 2025. Tariff adjustments may affect global inflation trends, and changes in electric vehicle policies, such as relaxing environmental regulations or canceling electric vehicle subsidies, may further increase uncertainty in the electric vehicle market. At the same time, deflation risks in mainland China may weaken the momentum of recovery in the consumer market. Furthermore, starting from 2025, Taiwanese and Chinese manufacturers will gradually open new production capacity in Thailand. Although the initial scale is limited, in the long run, the expansion of production capacity is bound to impact market price competition. In terms of cost control, the rise in international gold prices and the expected increase in electricity prices may also push up manufacturers' costs, becoming a focus that the industry needs to pay urgent attention to.
TPCA stated that although the first quarter of this year is a consumer off-season and the overall order momentum is expected to slow down, entering the consumer off-season, the demand for AI servers and satellite communications markets is expected to continue, warming up the industrial market in the first quarter. It is estimated that in the first quarter of 2025, Taiwan's PCB industry will grow moderately by 2.6% to NT$186.2 billion.
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