The shortage of printed circuit boards (PCBs) has been triggered by the recent Iranian strike on Saudi Arabian facilities, which controlled 80% of the global supply of a specialty chemical used in PCB manufacturing. According to PTI reports, this disruption has created immediate pressure on material costs and supply availability. A senior official from electronics manufacturing services firm Syrma SGS confirmed that the current quarter and subsequent quarter will continue to see pressure on material costs, with PCBs suddenly going into short supply due to the facility damage. The West Asia conflict and surge in AI server demand have caused this crunch in printed circuit boards, a hardware platform on which components are fixed in electronic products.
The PCB shortage comes at a critical juncture for Indian industry, as several major investments amounting to over ₹15,000 crore are in the pipeline under the Electronics Components Manufacturing Scheme (ECMS) amid rising domestic demand. Syrma SGS Technology Managing Director Jasbir Singh Gujral told PTI that the company has received approval for PCB production but is still several quarters away from commercial production, with civil construction of the proposed PCB plant 70% complete and the remaining 30% to be finished by month-end. The company is one of the applicants under the government's electronics component manufacturing scheme, with trial production expected from January to March 2026 and commercial production starting in FY 2027-28.
According to ELCINA Secretary General Rajoo Goel, the cost of every key raw material has risen in the last 8-9 months with no exceptions. Specifically, low-bromine epoxy resin increased by about 70%, JUSHI 7628 glass cloth doubled in the last 8 months*, and copper foil and electrolytic copper increased by over 30%. As reported by PTI, the prices have been rising sharply from January 2026, triggering a concentrated release of cost pressure across the entire raw materials bill of materials for PCBs. The main raw materials used in PCB manufacturing with high import dependence include Copper Clad Laminate Chemicals (CCL), where Wipro and SGS Syrma are setting up the first manufacturing plants.
The AI server demand surge is taking up PCB supply capacity, while demand for power electronics and energy-related products is growing in high double digits of 30-40%. According to ELCINA, global PCB suppliers are hiking prices by over 20% due to this demand pressure. The company noted that Copper Clad Laminate Chemicals (CCL) have 100% import dependence and require urgent localization efforts, while plating chemicals and etching chemicals have only 20-40% local capacity where expansion is necessary. Key market trends include AI-server demand taking up PCB supply capacity, while demand for smart meters, power management systems, and EV systems is growing significantly.
Syrma SGS expects trial production to begin in January-March 2026 and commercial production to start in FY 2027-28, with full production planned for FY 2028-29. As reported by PTI, the company is setting up the first manufacturing plants for CCL, with Wipro and SGS Syrma also establishing similar facilities. ELCINA emphasized that urgent steps are required to manage the situation, including expediting implementation of CCL manufacturing projects and ensuring that capital inputs, equipment, and technology transfer are not delayed. The key focus now is implementing several Bare PCB manufacturing projects (12-14 units) which have been approved under the ECMS scheme to address the current supply shortage.
