Prices for essential materials used in nearly all electronics are steadily climbing, driven by a supply-demand imbalance supercharged by the AI boom.
At the heart of this trend is E-glass fabric, a key ingredient for Copper-Clad Laminates (CCLs), which form the base of the printed circuit boards (PCBs) in our devices. Taiwan's Nan Ya Plastics, a major producer, recently confirmed multiple price hikes this year and is in talks for more. This move was echoed by China's Kingboard, which just announced its fifth price increase of 2026, a significant 15% jump. There are even market rumors that Nvidia's suppliers have pre-booked all of Nan Ya's production capacity, causing its facilities to run at full throttle.
This situation stems from a clear causal chain. First, there's overwhelming demand. The explosive growth of AI, led by companies like Nvidia, requires a massive build-out of servers and hardware. This intense demand has prompted buyers to secure materials far in advance, disrupting traditional supply chains. Second, other raw material costs are also surging. Copper prices have risen about 13% this year, and epoxy resin costs are climbing as well. Since CCL is made of roughly 42% copper foil, 19% glass fabric, and 26% epoxy resin, these combined increases directly translate into higher CCL prices. Third, the supply side is struggling to keep up. Major suppliers have publicly stated that the glass fabric shortage is expected to last until late 2027, with significant new capacity not expected to come online until mid-2027.
This isn't a sudden development. The signs have been visible since late 2025, when AI companies began aggressively securing materials. A wave of price hikes from various Asian suppliers like Resonac and Mitsubishi Gas Chemical since early 2026 confirms this is a widespread, structural issue, not an anomaly from a single company.
The math is straightforward. A 15% rise in E-glass, a 13% rise in copper, and a 10% rise in epoxy resin lead to a calculated CCL cost increase of about 10.9%. This figure closely matches the 10-15% price hikes announced by manufacturers. Ultimately, the intense demand from the AI sector is fundamentally reshaping the electronics supply chain, and the resulting cost pressures are likely to be passed down to consumers in the form of more expensive electronic goods.
- E-glass fabric: An electronic-grade glass fiber cloth that serves as a reinforcing material in printed circuit boards (PCBs), providing structural integrity.
- Copper-Clad Laminate (CCL): The base material for PCBs, made by laminating layers of E-glass fabric and copper foil together with epoxy resin.
- Printed Circuit Board (PCB): The foundational board found in nearly all electronic devices, on which microchips and other components are mounted.