Kathmandu— China's AI industry is experiencing explosive growth, driving unprecedented demand for high-end printed circuit boards (PCBs) and other foundational hardware components. As AI computing power demands increase, top-tier PCB manufacturers are seeing orders booked through 2027, with prices for high-speed PCBs more than quadrupling due to material shortages.

Impact on the PCB Industry

The surge in demand for AI computing power has significantly impacted the PCB industry. According to Wang Chen from the Greater Bay Area National Technology Innovation Center, top-tier PCBs are now in short supply as orders have surged. This scarcity is driving price hikes across multiple upstream suppliers, with high-speed PCB prices more than quadrupling. Industry insiders note that many downstream manufacturers are forced to raise their own prices or delay deliveries due to these shortages.

Economic Implications

The AI boom's economic implications extend beyond the immediate hardware sector. Researcher Gong Chao from Tongji University’s National Institute of Innovation and Development observes that the surge in orders for premium circuit boards signals a shift in demand from chips to physical hardware construction. This indicates large-scale procurement by cloud vendors and computing power operators, leading to robust growth across the AI industrial chain. However, experts caution against potential risks if large-scale AI model deployment falls short of expectations over the next two to three years.

(With inputs from Xinhua)

Originally published on abcnews.com.np.