CGS has released a research report indicating that the AI server-related PCB market is projected to achieve a compound annual growth rate of 18.7% from 2024 to 2029. As AI computing chips continue to advance, CCL materials are correspondingly upgraded, driving an increase in the layer count of core PCBs. AI servers, data storage, and network communications are fueling robust growth in high-multilayer PCBs and HDI boards.
The ongoing evolution of AI computing chips and the expansion of AI edge devices are accelerating upgrades in both CCL and PCB technologies. The demand for high-frequency, high-speed, and low-loss performance is prompting material innovations in PCB production, with related inputs such as fiberglass cloth, copper foil, and resin experiencing sustained price increases, ultimately leading to a simultaneous rise in both volume and pricing for CCL.
AI Drives High Growth in HDI and High-Layer Count Demand, While Chip Upgrades Propel CCL and PCB Evolution
According to Prismark, China's mainland PCB output in 2025 reached $48.459 billion, representing approximately 57% of the global total. The AI server-related PCB market is expected to grow at a CAGR of 18.7% between 2024 and 2029. Within this segment, AI-related HDI boards are projected to expand at a CAGR of 29.6%, while AI-related multilayer boards with 18 or more layers are set to grow at a CAGR of 33.8%, significantly outpacing the industry average of 8.2%. High-multilayer boards and HDI boards tied to AI applications are maintaining particularly strong momentum.
Per TrendForce, Nvidia's Rubin platform is adopting fully upgraded materials to achieve low loss and low latency. This includes a Switch Tray utilizing M8U grade materials (Low-Dk2+HVLP4) with a 24-layer HDI board design, while the Midplane and CX9/CPX incorporate M9 grade (Q-glass+HVLP4). The Midplane features an ultra-high multilayer PCB with 44 layers. As AI computing chips advance, CCL is being upgraded in tandem, and the layer counts of core PCBs are rising accordingly. Additionally, AI edge devices are generating surging demand for high-multilayer, high-frequency, high-speed, and high-density interconnect PCBs.
Rising Demand Lifts Prices of Copper Foil, Fiberglass Cloth, and Other Inputs
In its 2025 earnings forecast, Yizhong Technology noted that the average processing fee for copper foil products has increased, thanks to a recovery in industry conditions. Tongguan Copper Foil's 2025 forecast similarly highlighted that growth in processing fee revenue has become a key driver of profitability improvement. On March 2, 2026, Defu Technology confirmed that it has initiated price increases on processing fees for products including HTE and RTF supplied to a leading global CCL manufacturer.
Beyond copper foil, fiberglass cloth prices have risen notably since Q3 2025. According to Shanghai Securities News, ordinary fiberglass cloth has undergone four price hikes in October and December 2025, as well as January and February 2026, with the cycle shortening from quarterly to monthly. China Jushi's interim forecast indicated that demand from major downstream applications in glass fiber increased during H1 2026, leading to both higher volumes and prices. Honghe Technology's interim forecast also cited rising terminal market demand, with its electronic fiberglass cloth selling prices climbing due to supply-demand dynamics. By August 2026, mainstream 7628-grade fiberglass cloth prices had surpassed RMB 10 per meter. The favorable industry outlook is driving input prices higher, significantly benefiting companies across the supply chain.
Leading CCL Producers Experience Simultaneous Volume and Price Gains
Jin'an Guoji announced that the CCL market remained robust in H1 2026, with its primary products—copper clad laminates and prepreg—in short supply. Sales volumes rose year-on-year, and selling prices continued to climb, boosting gross margins and driving profit growth. According to Nanya New Material, the CCL industry entered a high-prosperity cycle in H1 2026, driven by sustained AI computing power demand. Market orders remain tight, with strong demand-side support. Meanwhile, upstream core raw materials such as copper foil, electronic fiberglass cloth, and resin saw phased price increases, presenting the industry with an opportunity for simultaneous volume and price gains. Nanya New Material has effectively passed on raw material costs, achieving higher volumes and prices for its main products.
The strong earnings growth of leading CCL companies is validating the industry's underlying logic. Risks to monitor include potential underperformance in new order signings and execution by PCB and CCL manufacturers, slower-than-expected AI chip demand and mass production, and risks related to the commercialization of AI applications.