The global wave of AI data center construction continues to accelerate, driving structural growth across the PCB and passive component industries. However, shortages of critical materials and insufficient capacity expansion have created new bottlenecks, sharply lengthening product lead times.
AI data center expansion and high-speed network upgrades continue to support demand for networking equipment. However, as the industry enters the second half of 2026, supplies of key components—including memory, printed circuit boards (PCBs) and passive components—remain tight, with lead times extending significantly.
Samsung Electronics is reportedly facing difficulties securing large-format FC-BGA package substrates for custom AI chips, as suppliers seek purchase guarantees, advance payments or direct procurement by end customers before allocating capacity.
Rising demand for AI data centers and high-bandwidth memory (HBM) is pushing semiconductor competition further upstream into silicon wafers and critical materials. Micron and GlobalWafers recently announced a 10-year agreement, with Micron also providing US$500 million in support, marking the longest and potentially largest long-term supply agreement in GlobalWafers' history.
Powertech Technology is deepening its panel-level packaging (FOPLP) strategy after its board approved a joint venture with Broadcom in Singapore to build panel-level advanced packaging (PLP) manufacturing capacity, with the planned investment totaling US$400 million.
Power semiconductor makers say prices are still being adjusted as upstream raw material costs rise and AI-driven high-margin products crowd out capacity. With supply tight across the chain, customers are now focusing on securing shipments first, even as new price-hike notices arrive in the third quarter of 2026.
Six-inch silicon carbide (SiC) substrates, a third-generation semiconductor product that has faced oversupply and falling prices for the past two years, have clearly bottomed out and are even starting to recover as capacity remains constrained and demand emerges across multiple sectors. Semiconductor distributors say supply is now tight, and customers who want to buy more must pay more, with new orders becoming increasingly hard to absorb.
Intel is developing a new memory architecture aimed at challenging the dominance of high-bandwidth memory (HBM), with commercialization targeted for around 2030. Although the path is fraught with ecosystem barriers and compatibility hurdles, Intel's parallel development of Z-angle memory (ZAM) and cross-batch memory (XBM) underscores its determination to re-enter the DRAM market, as it simultaneously bets on AI compute and storage.
The AI boom is tightening an important but often overlooked part of the chip supply chain, with global readers likely to feel the effects through higher costs, delayed capacity, and uneven access to advanced processors. As demand for CPUs, GPUs, and ASICs rises, ABF substrate supply is tightening, and the squeeze is expected to last for years.
Quartz component suppliers are raising prices as higher raw material costs from gold wire and ceramic bases squeeze margins. Industry sources said ceramic base prices could climb by double-digit percentages, in some cases even doubling, pushing makers to pass on some of the increases.
