company news about Current Status of the PCB Industry in Southeast Asia

Driven by high-value-added demand from AI servers, high-speed networking, satellite communications, and other applications, the Taiwan Printed Circuit Association (TPCA) observes that Thailand, Vietnam, and Malaysia are rapidly transforming from traditional consumer electronics manufacturing bases into a regionally complementary ecosystem that supports the development of high-end PCBs and IC substrates. According to TPCA statistics, Southeast Asia's PCB output currently accounts for approximately 12.3% of global production, with its industry standing continuing to rise. However, growth in the region at this stage mainly relies on production expansion investments from companies based in Taiwan, mainland China, Japan, South Korea, and the West, while local manufacturers' output accounts for only about 1% globally. TPCA believes that if Southeast Asia is to elevate itself from a mere "production base" to a "global PCB industry hub" with independent competitiveness, factors such as material localization, equipment support, talent supply, and maturity of the local supply chain will be decisive.

Thailand: Remains Southeast Asia's PCB Leader, with Strong AI and Data Center Investment

Thailand is the largest PCB producer in Southeast Asia, with output reaching USD 5.06 billion in 2025, an annual increase of 22.4%, accounting for approximately 5.4% of global output. This growth is largely attributable to new capacity releases from Taiwanese and mainland Chinese-invested enterprises, driving a rapid increase in Thailand's production share of high-end products such as AI servers, high-speed networking, and satellite communications. Looking ahead to 2026, benefiting from continued expansion of AI infrastructure, increased capital expenditure on data centers and cloud services, coupled with the global trend toward decentralized supply chain deployment, Thailand's PCB output is expected to rise to USD 6.09 billion, a year-on-year growth of 20.4%. On the policy front, the Thai government, through the Board of Investment (BOI), continues to improve the investment climate. In the first quarter of 2026, BOI investment applications exceeded USD 31.8 billion, with particularly notable large-scale data center and cloud infrastructure projects from tech giants such as Google and Microsoft. Meanwhile, the Stock Exchange of Thailand (SET) is studying the relaxation of listing and financing rules to attract more high-tech enterprises, promoting cross-border, in-depth cooperation in the upstream semiconductor, materials, and PCB supply chains.

Vietnam: Moving from Assembly Base to High-End Technology and Semiconductor Supporting Industry

Vietnam has long been a major assembly hub for global electronic products such as mobile phones and laptops, and its PCB industry has also seen significant growth in recent years. In 2025, the country's PCB output reached USD 4.15 billion, an annual increase of 33.9%, accounting for 4.4% of global output; it is expected to further increase to USD 4.9 billion in 2026, a year-on-year growth of 18.1%. Growth momentum mainly stems from rising demand for AI and high-performance computing, leading to expanded orders for high-end multilayer boards, HDI boards, and IC substrates. TPCA analysis indicates that the investment structure of Vietnam's PCB industry is gradually extending from serving terminal assembly toward higher technology content and the semiconductor industry chain. Taiwanese, Japanese, and Korean-invested enterprises continue to increase their presence, with investment directions covering AI server boards, high-end HDI, ABF substrates, and semiconductor packaging and testing, indicating that Vietnam is not merely an electronics OEM base but is upgrading toward high-value-added PCBs and advanced packaging-related supply chains. On the policy side, Vietnam has included AI, cloud computing, and semiconductors on its list of national strategic technologies, allocating USD 110 million through the National Technology Development Fund for key support; leading companies such as Qualcomm and Hon Hai are also expanding their AI R&D and smart manufacturing investments locally.

Malaysia: Prominent Advantages in Semiconductor Packaging and Testing, with Emerging AI Computing Hub

Malaysia holds a 13% global market share in semiconductor packaging and testing and forms a close semiconductor supply chain cluster with Singapore. Its PCB output reached USD 2.09 billion in 2025 and is expected to grow by 15.3% to USD 2.41 billion in 2026, driven by capacity expansion and AI infrastructure construction. The country's industrial investment is deeply tied to the AI supply chain: Austrian substrate giant AT&S announced this year an investment of up to EUR 2 billion to expand its Kulim plant, targeting the high-end AI substrate market; Taiwanese firm Chin Poon Industrial, through a "Singapore-Malaysia division of labor" model, has its Penang plant mass-producing AI server boards. On the policy front, Malaysia is implementing the "National Semiconductor Strategy (NSS)" and the MyChipStart program to support IC design, startups, and local semiconductor talent, while vigorously attracting international data centers and cloud service providers. With data center operators such as Australia's AirTrunk building large-scale AI data centers in Johor, Malaysia is rapidly becoming an important AI computing hub in Southeast Asia.

AI Infrastructure Investment Drives Transformation; Major Manufacturers Need to Strengthen Dual-Axis Layout

TPCA believes that global AI infrastructure investment has become a key engine driving the upgrading of Southeast Asia's PCB industry. Google and Microsoft are increasing their investment in Thailand's cloud infrastructure; Vietnam has designated AI, cloud computing, and 5G/6G as national strategic technologies and has attracted Qualcomm to establish an R&D center in Hanoi; and Malaysia's Johor AI data center cluster is taking shape at an accelerated pace. All signs indicate that Southeast Asia is transforming from an electronics manufacturing hinterland into an important node in the high-end server, AI infrastructure, and semiconductor supply chains. Faced with supply chain reorganization and expanding AI computing demand, TPCA recommends that Taiwan's PCB industry, while consolidating domestic high-end manufacturing, R&D, and key supply chain collaboration, should also carefully plan its strategic extension into Southeast Asia. Although Southeast Asia has become an important region for global PCB capacity deployment, the mass production of high-end products still depends on technical management capabilities, critical materials and equipment support, talent cultivation, and customer certification cycles. For companies on both sides of the Taiwan Strait, the key to future success is no longer simply overseas capacity expansion, but rather enhancing global delivery resilience and overall competitiveness through a dual-axis resource allocation of "domestic R&D and overseas manufacturing." TPCA stated that it will continue to strengthen ties with Southeast Asian markets, including ongoing collection of local investment, capacity, and supply chain information to provide decision-making references for members, while actively participating in Southeast Asian international exhibitions and industry forums to promote exchanges with local industry circles.

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Source: TPCA

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