[Hot Topic] Why are semiconductor material prices rising again? Let's find out.
2026-05-22
Recently, Japanese semiconductor materials supplier Sumitomo Bakelite announced a price increase for its "epoxy molding compound (EMC) for semiconductor devices."
The price increase covers all grades of Sumitomo Bakelite's EMC for packaging, with increases ranging from 10% to 20%, effective June 1, 2026. Sumitomo Bakelite holds approximately 40% of the global market share in semiconductor EMC, with products covering both traditional and advanced packaging needs, applicable to automotive electronics, industrial modules, and data centers.
Regarding the reason for the price adjustment, Sumitomo Bakelite stated that the recent situation in the Middle East has led to increased procurement costs for raw materials used in its EMC. Furthermore, rising costs for packaging materials, energy, and transportation have further increased the overall product cost. This is not the first time EMC prices have increased. In early April, Kumho Petrochemical of South Korea and Mitsubishi Chemical of Japan issued price increase notices for engineering plastics such as EMC, with increases ranging from a minimum of 5% to a maximum of 20%. Epoxy resin film plastics are thermosetting molding compounds made by compounding epoxy resin as a matrix with curing agents, inorganic fillers, and various additives.
They are widely used in the semiconductor packaging field to protect chips from external environmental influences and provide electrical insulation and heat dissipation. The price surge in epoxy resin molding compounds ultimately stems from supply disruptions to raw materials such as resin. According to Nikkei, the closure of the Strait of Hormuz has led to severe supply shortages of methanol, xylene, and related solvents, with prices rising by at least 40% since March. These solvents are essential raw materials for the production of various specialty resins.
The rising prices of resins and their raw materials are impacting all aspects of the semiconductor and PCB industry chain: an executive at a chip substrate supplier stated that Mitsubishi Gas Chemical has already raised the prices of some products by 20% in the first quarter of this year. He added that given the overall rising material costs, CCL prices are expected to rise further.
Huafu Securities points out that electronic resin, as the core substrate of copper-clad laminates, is crucial in determining the signal transmission efficiency and reliability of the board. Its industry chain extends from upstream resin synthesis through prepreg processing to downstream PCB conduction. Against the backdrop of explosive growth in AI computing power, computing chips are demanding signal transmission speeds exceeding 224Gbps, forcing PCB materials to leap from traditional FR-4 to M8, M9, and even higher-level high-frequency, high-speed copper-clad laminates. The core driving force lies in the iterative upgrades of resin systems.
Affected by escalating geopolitical conflicts in the Middle East and disruptions to shipping through the Strait of Hormuz, costs across the petrochemical industry chain have risen across the board, leading to significant increases in the prices of various commodities. The upstream suppliers of core CCL materials such as epoxy resin and PPO resin are also largely petrochemical companies. With raw material costs continuing to rise, price increases are expected to intensify.
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Middle East Conflict Disrupts Raw Material Supply, Driving Up PCB Prices
2026-05-13
Industry executives warn of soaring costs for resins, copper, and glass fiber, impacting everything from smartphones to AI servers.
The ongoing conflict in the Middle East is severely disrupting the supply of key raw materials, driving up the prices of printed circuit boards (PCBs) used in nearly all electronic devices — from smartphones and computers to advanced AI servers, according to industry executives and insiders.
This new disruption adds further pressure on electronics manufacturers already grappling with soaring memory chip costs. It also highlights the widening impact of the conflict, which has already disrupted global supply chains, plastics, and oil supplies.
In early April, an attack on a petrochemical complex in Jubail, Saudi Arabia, halted the production of high-purity Polyphenylene Ether (PPE) resin — a critical base material for manufacturing PCB laminates. According to a source, Saudi Basic Industries Corporation (SABIC), which supplies approximately 70% of the world’s high-purity PPE, operates the Jubail facility. Production has yet to resume, causing a severe global supply shortage of the material.
The conflict has also significantly disrupted shipping routes in the Gulf region. PCB prices had already been climbing since late last year, driven by growing demand for AI servers. Three industry insiders say that demand has accelerated sharply since March, as manufacturers scramble to secure raw material supplies and mitigate cost surges.
In a recent report, Goldman Sachs analysts noted that PCB prices jumped 40% in April alone compared to March. They added that cloud service providers are accepting further price increases, anticipating that demand will outpace supply for the foreseeable future.
According to a recent report by Prismark, the global PCB industry is expected to grow by 12.5% to reach $95.8 billion by 2026.
An executive at Daeduck Electronics — a South Korean PCB manufacturer whose clients include Samsung Electronics, SK Hynix, and AMD — told Reuters that the company has begun discussing price increases with customers. Speaking on condition of anonymity due to the sensitivity of the matter, the executive said his focus has now shifted from meeting clients to communicating with suppliers, as lead times for chemical materials like epoxy resin have extended from 3 weeks to as long as 15 weeks.
The sharp rise in PCB prices is also due to shortages of other key materials, including fiberglass and copper foil. According to one source, copper foil prices have surged as much as 30% this year, with the acceleration picking up in March.
Copper accounts for approximately 60% of the total raw material cost of PCB manufacturing, according to Shenzhen Hongxin Electronics Technology, a major Chinese PCB supplier to Nvidia. The Chinese company warned earlier this month that the Middle East conflict could drive up prices for key materials, including resin and copper.
According to Shenzhen Hongxin, a standard multi-layer PCB now costs approximately 1,394 yuan per square meter, while high-end models used for AI servers cost around 13,475 yuan per square meter.
Bicheng is a leading provider of custom PCB solutions. We closely monitor global supply chain trends to help our customers navigate market challenges and deliver high-quality, reliable boards for every application. Visit our website to learn more about our custom PCB services and current lead times.
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How much do you know about copper clad laminate (CCL)? Let me explain.
2025-09-10
How much do you know about copper clad laminate (CCL)? Let me explain.
Copper clad laminate (CCL) is the core substrate for PCBs, with downstream applications in communications, computers, automotive, industrial, and medical fields. Its upstream suppliers include raw materials such as copper foil, resin, and glass fiber, while its downstream suppliers include PCB manufacturers and end-use electronic product manufacturers. This industry is highly cyclical and is entering a new growth cycle, driven by emerging demands such as 5G, AI servers, and automotive electronics.
CCL is a sheet material made by hot-pressing a reinforcing material impregnated with resin, coated on one or both sides with copper foil, and then hot-pressed. It fulfills the three main functions of conducting electricity, insulating, and supporting printed circuit boards, making it a core material for PCB manufacturing.
The CCL industry chain has a clear three-tier structure: upstream raw material supply (copper foil, glass fiber cloth, resin, filler, etc.), midstream CCL manufacturing, and downstream PCB applications.
The three core raw materials for CCL are copper foil, resin, and glass fiber cloth, accounting for 42%, 26%, and 19% of the cost, respectively, for a total of 87%.
If you require additional substrates, please feel free to contact us! Bicheng Company specializes in providing high-frequency circuit boards and raw materials.
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[Hotspot] Global PCB output value grows steadily, and AI capital expenditure heats up the underlying material track
2025-07-16
On July 8, the PCB concept was hot. According to Prismark statistics, the global PCB output value is expected to grow to US$94.7 billion in 2029. The CAGR from 2024 to 2029 will reach 5.2%; the PCB output value of the Chinese market will reach US$49.7 billion in 2029.
In addition, in 2025, the capital expenditure of cloud factories such as Microsoft and Google will increase by more than 30% year-on-year. The capital expenditure of China's Alibaba and Tencent is expected to exceed 120 billion/80 billion yuan, and the demand for AI infrastructure will drive the accelerated expansion of the production capacity of underlying materials such as PCB.
The AI-driven technological innovation upcycle will last longer and generate greater market demand. China's PCB industry continues to upgrade and expand mid-to-high-end production capacity and deploy overseas production capacity, and its performance release is sustainable.
The overall demand for downstream electronics is currently showing a recovery trend, coupled with the continued upward momentum in innovative fields represented by AI and high-speed communications, which together support the growth in overall PCB demand. With the iteration of AI hardware performance, PCB will be further upgraded to higher specifications in terms of product technology and materials. Relying on its early technological accumulation and improved product competitiveness, Bicheng Technology has gradually improved its industry position in the high-end market, and its AI PCB supply share has continued to increase. Bicheng is expected to achieve rapid development by seizing the opportunities of AI development.
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Wangling's F4B insulation material
2025-06-13
Taizhou Wangling Insulation Material Factory was established in 1982. Its products are mainly high-frequency microwave materials, with 6 product series:
1. PTFE glass fiber cloth coated substrate F4B series, DK value 2.2~6.15 optional;
2. Microwave composite dielectric substrate TP/TF series, DK value 3.0~25 optional;
3. Organic polymer ceramic filled substrate WL-CT series, DK value 3.0, 3.38, 3.48, 4.4, 6.15;
4. PTFE quartz ultra-thin ultra-fine glass fiber cloth ceramic filled substrate F4BTMS series, DK value 2.2, 2.55, 2.65, 2.94, 3.0, 3.5, 4.5, 6.15, 10.2;
5. PTFE ceramic composite substrate TFA series, DK value 2.94, 3.0, 6.15, 10.26. Insulation cloth, anti-stick paint cloth.
The company has passed ISO quality management system certification and J engineering three certificates. It has been successfully supported by national key projects for many times, and has been commended by the national aerospace, aviation and manned space projects, and won the title of Outstanding Supplier of China's Aerospace. The products are widely used in aerospace, aviation, satellite communications, navigation, radar, infrastructure, electronic countermeasures, 3G, 4G, 5G communications, Beidou satellite system, mobile Internet, etc.
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Copyright statement: The copyright of the information in this article belongs to the original author and does not represent the views of this platform. It is for sharing only. If there are copyright and information errors involved, please contact us to correct or delete it. Thanks!
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