Analyst: PCB prices are expected to rise again in the third quarter, optimistic about Taiguang Electric and Nandian's future market

According to the Economic Daily, in the past six months, CCL manufacturers have raised product prices by about 20% to 30% due to the overall increase in upstream material prices. Most PCB manufacturers have not been able to pass on these costs quickly enough, resulting in a time lag of 2 to 3 months, which has eroded profit margins. Institutional investors indicate that starting from the third quarter of this year, some PCB manufacturers will increase prices, and the benefits are expected to drive a rebound in the profitability of related manufacturers.

Analysts state that in terms of substrates, electronic fiberglass cloth led by T glass and copper foil drilling needles are still in short supply, with T glass experiencing the most severe shortage, with some manufacturers facing a gap of up to 20%. This gap is expected to continue into next year. It is anticipated that in the second half of this year, substrate manufacturers will enter a supply-demand imbalance driven by the high demand for AI GPUs and ASIC high-performance computing, as well as the continued tightness of key raw materials. Substrate manufacturers will continue to adopt rolling price adjustments, with prices still having double-digit upward potential.

Additionally, due to the sustained high demand related to AI and the specification upgrades driven by new generation products, there is continued optimism that CCL manufacturers will benefit from both price and volume increases. With raw material prices remaining tight and the delivery times for high-end CCL continuing to extend, the trend of price increases remains unchanged. There is continued optimism for the future development of Taiwanese CCL manufacturers such as Taiflex and Taisil. Meanwhile, as the substrate gap gradually widens, it benefits the bargaining power of substrate manufacturers, and the trend of price increases will continue, maintaining a positive outlook on the future performance of Taiwanese substrate manufacturers, including Nanya Technology and other supply chain partners.