India’s electronics manufacturing industry is preparing for a deeper shortage of printed circuit boards (PCBs), with supply constraints expected to continue until at least mid-2027. The shortage threatens production across smartphones, consumer electronics, telecom equipment and automotive electronics, as global demand for advanced circuit boards rises alongside shortages of critical raw materials.
The supply crunch is being driven by two pressures at once: artificial intelligence data centres are absorbing more high-end PCB manufacturing capacity, while geopolitical disruptions in West Asia have constrained supplies of specialised chemicals and materials used to manufacture circuit boards. Indian manufacturers say demand remains healthy, but their ability to fulfil orders is increasingly constrained by component availability and rising costs.
PCB Shortage Could Continue Until Mid-2027
According to industry executives cited by Moneycontrol, the PCB supply situation could become more difficult over the coming quarters, with meaningful improvement expected only around the middle of 2027.
Syrma SGS Technology Managing Director Jasbir Singh Gujral said the shortage could become more acute in the coming quarter. He expects the situation to begin easing around mid-2027, although the timeline will depend partly on the pace of investment in AI data centres.
Dixon Technologies Vice-Chairman and Managing Director Atul Lall also described the supply situation as challenging across the electronics industry. He said the company was managing the constraints through established relationships with suppliers and business partners.
The shortage is particularly concerning because Indian electronics manufacturers are attempting to increase domestic production across several categories.
| Industry segment | Potential impact |
|---|---|
| Smartphones | Component availability and production scheduling could be affected |
| Consumer electronics | Higher manufacturing costs and delays |
| Telecom equipment | Supply constraints for advanced circuit boards |
| Automotive electronics | Pressure on electronic control systems and components |
| AI infrastructure | Competition for high-performance PCB capacity |
The shortage is not limited to India. Global manufacturers are also competing for advanced circuit boards and specialised materials, making it harder for Indian companies to secure additional supplies quickly.
Why AI Data Centres Are Creating PCB Supply Pressure
One of the biggest drivers of the shortage is the rapid expansion of AI infrastructure.
AI data centres require large numbers of specialised servers equipped with powerful processors, memory systems, networking equipment and high-speed connections. These systems depend on advanced printed circuit boards capable of supporting complex electrical connections and higher performance requirements.
As investments in AI infrastructure increase, demand for high-end PCBs has grown significantly.
Manufacturers supplying AI server companies and hyperscalers are competing for limited production capacity and raw materials. Suppliers are consequently prioritising customers placing large orders for advanced data-centre hardware.
This creates a supply challenge for companies producing conventional electronics. Even when smartphone, television and automotive manufacturers have confirmed orders, they may struggle to secure the required circuit boards at the right time.
The problem is therefore not simply an increase in demand for electronics. It is a competition for manufacturing capacity and materials across different categories of electronic products.
West Asia Conflict Disrupts Critical PCB Raw Materials
Geopolitical disruptions in West Asia have added another layer of pressure to the global PCB supply chain.
A key concern involves the availability of specialised chemicals used to manufacture copper-clad laminates (CCL), one of the most important inputs in PCB production.
The Moneycontrol report identifies a shortage of high-purity polyphenylene ether (PPE) resin, a specialised material used in certain high-performance laminates.
Saudi Arabia’s Jubail petrochemical complex, which the report says accounts for approximately 70% of global production of this specialised material, was shut down in March following drone strikes.
The disruption has affected the availability of PPE resin and increased uncertainty for manufacturers dependent on the material.
Other inputs, including epoxy resins and specialty chemicals, have also faced supply pressure.
These developments demonstrate how a disruption at a single industrial facility can affect electronics manufacturers across multiple countries. PCB production depends on a network of specialised chemical suppliers, laminate manufacturers and component producers. A shortage at one stage can create delays throughout the supply chain.
Copper-Clad Laminate Prices Surge More Than 300%
Rising raw material prices are making the shortage more expensive for manufacturers.
Copper-clad laminate is a key material used to manufacture printed circuit boards. It consists of insulating material, commonly reinforced with fibreglass, combined with copper foil layers that help create electrical connections.
According to the India Printed Circuit Association (IPCA), CCL prices have increased by more than 300% over the past 12 months. The association also reported that several other inputs have become up to 200% more expensive over the past six months.
Global suppliers, including Kingboard, have reportedly announced nine to ten successive price increases since August 2025.
The India Cellular and Electronics Association (ICEA) separately highlighted that CCL accounts for approximately 30% to 45% of PCB manufacturing costs and reported a price increase of more than 70% in its October assessment. These are industry estimates from different reporting periods and assessments, rather than directly comparable measurements.
| PCB input | Reported supply or pricing pressure |
|---|---|
| Copper-clad laminates | IPCA reports prices up more than 300% over 12 months |
| Other specialised inputs | Some prices up to 200% higher over six months |
| Copper-clad laminates | ICEA separately reported an increase exceeding 70% |
| PPE resin | Supply disrupted following the shutdown of a major Saudi petrochemical facility |
| Epoxy resins | Availability and prices under pressure |
| Specialty chemicals | Tight supply affecting PCB manufacturing |
Higher input costs can affect both PCB manufacturers and the companies purchasing circuit boards for final products.
Manufacturers may attempt to pass on some of these increases to customers, but the extent of price increases will depend on supply contracts, competition and the ability of buyers to absorb additional expenses.
Electronics Industry Warns of Possible Production Cuts
The shortage has raised concerns about the ability of India’s electronics industry to maintain its production targets.
In an earlier October 2026 report, industry executives warned that shortages of PCB raw materials could potentially reduce production across several electronics segments by 30% to 40% over the following three months.
This was an industry warning about potential disruption, not a confirmed nationwide production decline.
The concern is particularly relevant for smartphone manufacturers and electronics manufacturing services (EMS) companies that operate large production facilities and depend on continuous component supplies.
Dixon Technologies said it was using its supplier relationships to manage the situation. Syrma SGS has also revised its procurement strategy and increased inventory levels to protect production.
Gujral previously described inventory as a strategic asset during periods of supply disruption. The company has also established a dedicated supply-chain team to monitor availability and secure critical materials.
However, maintaining larger inventories requires additional working capital. Smaller manufacturers may find it more difficult to finance higher inventory levels while dealing with rising input costs.
Industry Seeks Government Support to Ease Shortages
Industry associations, including ELCINA and IPCA, have urged the government to introduce temporary measures to reduce the pressure on electronics manufacturers.
Their demands include:
- Import duty waivers on critical PCB raw materials.
- Duty-free access to copper-clad laminates for eligible importers and traders.
- Working capital support for smaller manufacturers.
- Financial assistance to help companies manage the supply disruption.
- Faster implementation of domestic PCB and raw material manufacturing projects.
The industry argues that temporary import relief could help manufacturers secure materials while domestic production capacity is being developed.
However, removing import duties alone may not resolve the problem if international suppliers cannot provide sufficient quantities. Availability, rather than just the cost of importing materials, remains a central constraint.
Industry executives have also cautioned against unpredictable changes in government policy. Manufacturers need clarity when planning long-term investments and negotiating supply contracts.
India’s Domestic PCB Manufacturing Push Faces a Test
The shortage comes at an important time for India’s electronics manufacturing ambitions.
The government is supporting domestic component production through the Electronics Components Manufacturing Scheme (ECMS), which aims to strengthen the local supply chain and reduce dependence on imports.
More than ₹15,000 crore worth of investments are being planned in the broader electronics component ecosystem, including PCB-related manufacturing projects.
However, establishing a domestic manufacturing facility takes time. Companies must complete construction, install equipment, secure technology and raw materials, conduct trial production and qualify products with customers before commercial supplies can begin.
Syrma SGS, for example, has been developing its own PCB manufacturing capabilities, but its commercial production timeline extends into FY2027-28, according to earlier company comments reported by PTI.
The development of local copper-clad laminate production and specialised chemical manufacturing is also important. Domestic PCB assembly alone cannot eliminate import dependence if essential upstream materials continue to come from overseas suppliers.
The Bigger Picture
India’s PCB shortage exposes a structural weakness in the country’s electronics supply chain: expanding final-product assembly does not automatically create self-sufficiency in critical components and materials. The AI infrastructure boom is intensifying competition for advanced circuit boards, while geopolitical disruptions are affecting the specialised chemicals and laminates required to manufacture them.
The situation also creates an opportunity for domestic manufacturers. Investments in PCB production, copper-clad laminates and specialty chemicals could strengthen India’s electronics ecosystem over time. However, these projects cannot provide immediate relief. Until additional capacity becomes commercially operational, manufacturers will remain exposed to imported material availability, global pricing and supply-chain disruptions.
Looking Ahead
The next few quarters will be important for India’s electronics manufacturers as they attempt to secure materials, manage inventories and maintain production schedules. Supply conditions are expected to remain challenging until at least mid-2027, although a slowdown in AI infrastructure investment or the restoration of disrupted chemical supplies could improve availability sooner.
The longer-term solution will require more than temporary import-duty relief. India will need to accelerate domestic production of PCBs and their critical raw materials while developing reliable international supplier networks. The progress of ECMS-backed projects and the recovery of global material supplies will be important indicators of when the industry can return to more stable production conditions.
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