Citi: AI Server PCB Supply Bottleneck Shifts Upstream; Copper-Clad Laminate Sees 20-40% Price Hike

According to Citi's latest research report published on June 15, AI server demand for PCB is shifting from volume growth to material upgrades, with supply bottlenecks moving upstream from PCB manufacturers to copper-clad laminate and electronic cloth suppliers. Citi noted that PCB capacity is expanding fastest, followed by copper-clad laminate, while electronic cloth capacity grows slowest; however, pricing power reverses upstream, with greater price elasticity at higher supply chain tiers.

Cpper-clad laminate capacity is expected to grow only slightly above 20% this year, significantly below PCB expansion rates. As Q3 AI demand ramps up, some PCB makers may face copper-clad laminate allocation shortages. Prices for M7 and below grades have risen at least 20%, with low-end M4 products up 30-40%, while high-end M8 materials used in AI applications rose 10-20% due to manufacturers prioritizing long-term customer relationships.