The demand for AI is driving a global expansion in Printed Circuit Board (PCB) production and the development of new manufacturing locations. Chinese manufacturers are actively establishing a presence in Thailand, while South Korean PCB companies, leveraging Samsung's longstanding operations in Vietnam, have made Malaysia a key expansion site for IC substrates in recent years. Japan is increasing investment to strengthen its ecosystem for advanced packaging and high-end PCBs, and Taiwanese PCB manufacturers have initiated a "China Plus One" strategy, shaping a new wave of production expansion.
On December 14, the Taiwan Printed Circuit Association (TPCA) and the Industrial Technology Research Institute's Industrial Economics and Knowledge Center released the "2025 Mainland China PCB Industry Dynamic Observation" and the "2025 Japan and South Korea PCB Industry Observation" reports, analyzing the industrial shifts in East Asian PCB production bases in the AI era and the expansion into new locations.
TPCA pointed out that Mainland China is the world's largest PCB production base. In 2025, the output value of Mainland Chinese companies is expected to reach $34.18 billion, a year-on-year increase of 22.3%, with the global market share rising to 37.6%, demonstrating explosive growth momentum.
Mainland Chinese manufacturers are actively promoting overseas deployment. Thailand, with its favorable investment environment and well-developed infrastructure, has become the preferred destination for Mainland Chinese PCB manufacturers' capacity relocation. TPCA stated that the current estimated production value of Mainland Chinese-funded PCB factories in Thailand accounts for about 1.7% of their total output value. Although they may face challenges in the short term, such as rising local labor costs and low initial yield rates for new factories, the globalization strategy can mitigate geopolitical risks and attract new customers and market share in the long run.
Taiwan (China) is the world's second-largest PCB production base. Mainland China was once the primary production location for Taiwanese PCB companies. In recent years, affected by geopolitical risks, Taiwanese companies have successively launched a "China Plus One" strategy, establishing new bases in Taiwan and Southeast Asia. Currently, more than ten Taiwanese-funded PCB companies, including Compeq, Zhen Ding Technology, Unimicron, Chin-Poon, and Gold Circuit Electronics, have invested and set up factories in Thailand, with many now in mass production. Tripod focuses on Vietnam, while HannStar Board and GBM, under the PSA Group, have chosen Malaysia for their plants.
TPCA stated that Taiwan's (China) semiconductor and PCB industries play crucial roles in the global AI server supply chain. Facing changes in the new Asian landscape, Taiwan (China) needs to accelerate the deepening and strengthening of its capabilities in advanced packaging, high-end technology, and material autonomy while managing geopolitical and market risks to maintain its key role in the AI era's supply chain restructuring.
Japan is the world's third-largest PCB production base. TPCA noted that the output value of Japanese-funded companies in 2024 was approximately $11.53 billion, with a global market share of about 14.4%. It is estimated that Japan's PCB industry will return to positive growth in 2025, with the total domestic and overseas output value expected to rise to $11.82 billion, reaching $12.35 billion in 2026.
Furthermore, TPCA indicated that Japan is not only relying on corporate investment to boost production capacity but also aligning with the government's recent national strategies for AI and semiconductors. Through institutionalized subsidies, dedicated funding systems, and supply chain security strategies, Japan aims to enhance its overall competitiveness in the advanced packaging and high-end PCB ecosystem.
South Korea ranks fourth in the global PCB market. TPCA reported that the total domestic and overseas output value of South Korean-funded enterprises in 2024 was approximately $7.86 billion, accounting for a 9.8% market share. The South Korean industry is expected to experience stable and moderate growth from 2025 to 2026, with projected total output values of $7.94 billion and $8.16 billion, respectively.
Regarding overseas deployment, TPCA pointed out that South Korean PCB companies, benefiting from Samsung's established supply chain in Vietnam over the years, have made Malaysia a primary expansion base for IC substrates in recent years, actively increasing BT substrate capacity to meet subsequent memory market demand. TPCA analyzed that South Korea will continue to play a significant role in memory and server platforms and maintain its strategic position in the global PCB supply chain through high-end substrate technology.
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Source: TPCA
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