Written by: Rita

AI servers are becoming the strongest demand engine in the PCB and CCL industry. In a global PCB/CCL industry report released on August 5, Goldman Sachs raised the global AI PCB market size forecast for 2027 by 38% to 38 billion USD, and the AI CCL market size by 18% to 22 billion USD. The 2028 forecasts are even more impactful, projecting the PCB market to reach 84 billion USD and the CCL market to reach 48 billion USD, with compound growth rates for 2026 to 2028 at 148% and 161%, respectively. The core driving force is both volume and price increase, with PCB shipments growing at a compound growth rate of 85% and CCL shipments growing at a rate of 77%, while the ASP also increases concurrently due to specification upgrades. Goldman Sachs has given buy ratings to multiple companies along the supply chain, covering the complete chain from upstream materials to midstream manufacturing.

Tenfold Growth in the AI PCB Market Over Three Years

Goldman Sachs has significantly raised its market size forecasts for AI server PCBs and CCLs. The AI PCB market for 2027 has been raised from 27 billion USD to 38 billion USD, and the AI CCL market from 19 billion USD to 22 billion USD. The 2028 forecast is even more striking: the PCB market will reach 84 billion USD, and the CCL market will reach 48 billion USD, with compound growth rates for AI PCB and CCL markets from 2026 to 2028 at 148% and 161%, respectively.

The growth drivers come from both volume and price aspects. In terms of shipments, PCB shipments will increase from 1.3 million square meters in 2026 to 4.5 million square meters in 2028, with a compound growth rate of 85%; CCL shipments will increase from 42 million sheets in 2026 to 131 million sheets in 2028, with a compound growth rate of 77%. The ASP for PCBs and CCLs will have compound growth rates of 34% and 48%, respectively, with specification upgrades as the core driving force. The share of HDI over six layers in the total HDI PCB market will rise from 35% in 2027 to 66% in 2028, and the share of M9 and above CCL in the total CCL market will increase from 41% in 2027 to 58% in 2028.

Goldman Sachs has also introduced backplane scenario analysis. In the NVL144 Rubin Ultra architecture, the single machine value for backplane PCBs and CCLs is 113,000 USD and 60,000 USD, respectively. In an optimistic scenario, the backplane PCB market could reach 1.17 billion USD in 2028, 30% higher than the baseline scenario.

Capacity Expansion Not Keeping Up with Demand Growth, High Utilization Supports Pricing

Even though major manufacturers have announced capacity expansion plans, Goldman Sachs believes that the release of effective capacity will not increase linearly. High-layer products consume more capacity, and the yield rate of high-end products is lower, both of which limit the actual increase in effective capacity. Goldman Sachs judges that the industry's capacity utilization rate will remain high over the next two years, and the tight supply-demand pattern will not change.

From the perspective of the supply chain, the explosion of demand for AI servers is driving structural upgrades across the entire PCB/CCL supply chain. The number of PCB layers is evolving from the traditional servers' 10 to 12 layers to over 30 layers, CCL materials are evolving from M6 to M9, and HDI is evolving from 2 to 4 layers to 6 to 8 layers. Every upgrade at each stage represents a leap in single machine value.

Goldman Sachs Recommends Products like Shunyi Technology for PCB/CCL

Goldman Sachs has listed several buy-rated targets in its research report, covering the complete supply chain from upstream materials to midstream manufacturing.

Shunyi Technology is a target that Goldman Sachs is confident in and is a leading global CCL supplier. The company is transitioning to M9-level CCLs from 2026 to 2027 to achieve lower signal loss and better heat dissipation performance. Goldman Sachs expects its net profit growth rates for 2026 and 2027 to be 104% and 73%, respectively, with the AI server PCB revenue contribution reaching approximately 40% in 2027 and long-term exceeding 50%. The operating profit margin is expected to expand from 15% in 2025 to 20% in 2027.

Shenghong Technology benefits from the global expansion of AI infrastructure, the increase in single machine value brought by PCB layer upgrades, the trend of PCB replacing copper cables in AI servers, and the expansion from GPU AI server customers to ASIC AI server customers. The company's three factories in Thailand are gradually starting production, with the A1 plant already mass-producing and the A2 plant targeting mass production in the third quarter of 2026.

Panasonic HD is transitioning from a structural reform phase to a growth phase. Its MEGTRON series CCL and conductive capacitors are leading in performance, with MEGTRON 9 CCL having begun small batch production for customer validation, and large-scale production expected in FY 2028. The share of high-performance CCL is expected to reach around 60% in FY 2027.

Mitsui Mining and Smelting holds about 80% of the global market share in high-end electrolytic copper foil, and its VSP series ultra-low roughness double-sided smooth copper foil resolves the contradiction between transmission loss and adhesion in high-speed server substrates. Goldman Sachs expects revenue compound growth rates for its VSP product line to reach 56% from FY 2026 to FY 2029.

Nitto Denko is the market leader in low dielectric glass cloth, having first commercialized it in 1998. Its second-generation NER Glass holds an overwhelming market share, with a very high technology barrier. Goldman Sachs expects NER Glass revenue compound growth rates to reach 60% from FY 2026 to FY 2029.

AI servers are rewriting the growth curve of the PCB and CCL industries. The 84 billion USD AI PCB market and 48 billion USD AI CCL market in 2028 represent a significant leap. The logic of simultaneous quantity and price increases is being realized at every link in the supply chain, including material upgrades, increased layers, expanded areas, and higher unit prices. Goldman Sachs’s recommendation logic covers the complete chain from CCL materials to electrolytic copper foil, glass cloth, and PCB manufacturing. The pace of capacity expansion is not keeping up with the demand growth rate, and high utilization will continue to support pricing, which is the basis for Goldman Sachs's constructive view on the entire AI PCB/CCL supply chain.

Disclaimer

This article is a compilation and interpretation of a third-party brokerage research report (Goldman Sachs, August 5, 2026) by Chao Xiang Research, combined with public market information. The ratings, target prices, profit forecasts, and related judgments cited in the text are the views of the broker's analysts and only represent the stance of their institution, not the views of Chao Xiang Research, nor do they constitute any investment advice.

The market carries risks, and decisions must be independent. This article should not be used as a basis for buying or selling any securities.