Garner Osborne Circuits has released its Q3 2026 supply chain update, highlighting a noticeable shift toward more constrained conditions across PCB materials, components, and upstream raw inputs. While the company’s Q2 update identified early signs of tightening, new data from laminate producers, glass fabric manufacturers, resin suppliers, and semiconductor partners indicates that the market has now moved decisively into a more restricted phase. This is being driven by structural demand growth, raw material shortages, and geopolitical pressures that are expected to influence availability through 2027 and beyond.
The update outlines the key factors influencing component availability, pricing, and lead times, as well as the operational considerations organisations may need to factor into projects scheduled through late 2026 and into 2027.
The market continues to tighten
Across the PCB and semiconductor supply chain, availability is tight and pricing pressure is increasing. These conditions reflect sustained global influences rather than short‑term volatility, including:
- AI infrastructure growth is driving unprecedented demand for high‑speed laminates, thin glass styles, specialist prepregs, and HVLP copper foil
- Raw material shortages, particularly glass fabric, epoxy resin, and copper, limiting production capacity for both standard and high‑performance PCB materials
- Geopolitical instability is affecting oil pricing, resin production, trade routes, and energy costs
- Inventory protection measures by manufacturers, creating an artificial tightening effect and reducing market availability
While standard PCB materials remain manageable today, the industry is clearly shifting away from ‘on‑demand’ supply and toward planned, allocated, and forward‑committed procurement.
Are PCB materials entering one of the tightest cycles in recent years?
Over the past several months, signals from upstream suppliers have become increasingly aligned. Laminate producers, glass fabric manufacturers, and resin suppliers are all reporting sustained pressure across their operations. What initially appeared as isolated delays or selective price adjustments is now forming a clearer trend, suggesting the PCB materials market is entering one of the tightest cycles seen in recent years.
As outlined above, this shift is being driven by structural demand growth, raw material shortages, and increased inventory holding across the supply chain. While standard materials remain broadly available, forward planning, early commitment, and material flexibility will become essential as organisations move through 2026 and into 2027.
Upstream laminate and prepreg supply is now under sustained pressure. Several factors are converging:
High‑speed/low‑loss laminates
Demand for high‑speed CCL is growing at more than 15% annually, driven by AI servers, data centre expansion, and next‑generation networking.
- 2026 demand already exceeds global capacity
- Lead times for specialist materials are extending to as much as 6+ months
- Multiple price increases have occurred since 2025, with further rises expected in 2027
Glass fabric shortages
Glass fabric, which is a critical input for PCB laminates, is currently one of the most constrained areas. An increase in demand around AI-focused K-fabric is a big contributor to this, with thin glass styles being deprioritised in favour of these materials.
- Thin glass styles (e.g., 1080) are being deprioritised in favour of AI‑focused K‑fabric
- Output reductions of 30% or more are expected across 2026
- Pricing is rising month‑on‑month, closely tied to allocation acceptance
Copper foil and resin pressures
HVLP copper foil remains tight due to similar AI demand reasons contributing to the glass fabric shortages, alongside limited global suppliers. Alongside this, copper processing fees are rising, and epoxy resin costs have surged following the Middle East conflict driving up oil prices.
Prepreg supply constraints
Thin prepreg continues to be dominated by Japanese and Taiwanese suppliers, with limited expansion plans. Thick prepreg capacity increases are already underway but remain far short of demand.
Structural shortages emerging for components
While we are not seeing widespread disruption across all of the component categories, it’s clear that several areas are tightening at a rapid rate. A key indicator of where areas are tightening is if there is a demand driven by AI, automotive, or industrial systems.
Key pressure points:
- High‑demand and legacy components are experiencing reduced availability
- CPU, SSD, memory, power devices, and passives are among the most constrained categories
- Lead times of 20-50 weeks are becoming increasingly common
- Legacy components face shrinking supply and potential obsolescence
These trends reflect a structural shift: semiconductor demand has permanently increased, and constraints are expected to persist well into 2027 and beyond.
What this means for manufacturers
Costs across components, materials, and logistics continue to rise, accompanied by increased variability in lead times and allocation. Pricing movement is only one part of the challenge, the greater risk lies in production disruption caused by shortages or extended material lead times.
Forward‑planning recommendations
To maintain continuity and reduce the risk of disruption, organisations are increasingly adopting a forward‑planning approach. Rising pressure across PCB materials, components, and upstream raw inputs means that early visibility, committed orders and proactive supply chain engagement are becoming essential for protecting production schedules through 2026 and 2027.
Key actions should include reviewing upcoming builds earlier than usual, identifying components and materials with potential supply risk, securing critical parts ahead of demand peaks, and considering approved alternative materials where appropriate. Increasing communication and visibility across the supply chain is also proving vital, helping manufacturers anticipate constraints before they impact production.
