Chip scarcity assaults auto industry amid the worsening Nexperia and DRAM crisis
An unnamed exec from an American PC maker spoke to Nikkei about the dire shortage of PCBs. “Even though PC shipments could decline again next year, we are still struggling to secure enough PCB supplies to meet our needs,” said the manager, who asked to remain anonymous. They were talking about securing enough supplies to make plans for products in the coming year. Several commenters pointed to AI computing demand eating up production capacity.
The outlet also talked to business people further up the supply chain – the makers of PCBs and the makers of the components/materials needed to actually make PCBs. Traditional PCB demand is becoming underserved as AI products demand and pay more. One PCB maker talking to Nikkei said that a significant number of products have lead times that have doubled. Specifically, some PCB orders will take as long as 30 months to fulfill. Another PCB supply firm explained to Nikkei that a new order today would not be fulfilled until late in 2028.
Though PCB makers are planning to invest and expand, they also need to secure multiple upstream materials. These can include copper clad laminates (CCLs) and the specialized fiberglass used for PCB construction .
One Taiwanese PC maker noted that costs for CCLs have surged at least 12 times since July. Moreover, one of the world’s leading suppliers of CCLs has told the Nikkei that it has an order book that is currently filling up to 2030. This situation appears to have occurred despite its plans to triple capacity by 2028.
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Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/pc-components/SPONSORED_LINK_URL
- https://www.tomshardware.com/pc-components/ai-demand-triggers-massive-pcb-shortage-for-pc-makers-as-order-books-full-until-2030-lead-times-stretch-to-30-months-as-material-costs-surge-12x#main
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