PCB lead times extend as material shortages and AI demand strain supply chains

The company says the supply situation for PCB base materials has tightened significantly in recent months, driven primarily by an ongoing shortage of fiberglass fabric, higher raw material costs and rapidly growing demand from emerging sectors such as artificial intelligence.

The shortage continues to affect the availability of laminates used in PCB manufacturing. Advanced materials with high glass transition temperatures (high Tg) and low dielectric constants are particularly impacted. Lead times for these materials have now reached up to 140 days, according to ILFA.

The situation is also becoming more noticeable for standard materials. Lead times for FR-4 laminate from major suppliers have increased from only a few days to around four weeks.

AI boom increases pressure on PCB materials

At the same time, the rapid expansion of AI-related infrastructure is increasing demand for highly complex PCBs. Significant investments in new manufacturing capacity – particularly in Asia – are further driving demand for base materials.

According to ILFA, Chinese manufacturers have invested several billion US dollars in new PCB production facilities over the past two years, including new plants in Thailand.

Much of the output from these facilities is expected to target high-layer-count PCBs with more than 40 layers, typically used in data centres and AI hardware. This development is placing additional pressure on base material suppliers.

High capacity utilisation

Production capacity at many PCB factories in both Europe and Asia is currently heavily utilised. In many cases, manufacturers are reporting order backlogs of three to four months.

While quick-turn production is still possible in some situations, the company says such orders are becoming increasingly limited and are typically evaluated on a case-by-case basis.

The combination of material shortages, rising demand and constrained production capacity is also contributing to higher prices across parts of the market.

For certain advanced materials, price increases of between 10% and 15% compared with 2025 are currently expected. In some base material segments, increases of 20–30% are being reported, with some suppliers also introducing material allocation quotas.

Logistics and geopolitical uncertainty

Additional uncertainty stems from geopolitical developments affecting logistics and transportation costs. Shifts from sea freight to air freight are pushing costs higher and may also affect delivery times for materials and finished boards.

According to ILFA, the current situation means PCB lead times may increase if required base materials are not available at short notice. The company recommends that customers plan projects early, provide reliable demand forecasts and build sufficient buffers into their supply chains to reduce the risk of production disruptions.