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We would like to provide an update on the current PCB laminate supply chain situation and the challenges being experienced throughout the global PCB industry.
The world’s largest laminate supplier Kingboard have sent us a statement regarding the current situation advising us that they are currently facing significant raw material shortages. Only around 80% of their June order book requirement is expected to be fulfilled, creating a shortfall in laminate availability. The forecasts suggest that supply constraints may continue into the coming months.
In addition to availability concerns, the cost of raw materials used in PCB laminate production has increased substantially. The market conditions have become extremely volatile, with material allocation increasingly being driven by availability and purchasing power. As a result, laminate costs are continuing to rise, placing significant pressure on PCB manufacturers worldwide.
Key supply disruptions
Laminate is produced from glass fibre and epoxy resin, materials that are closely tied to crude oil supply. With the Middle East recorded to supply around 52% of China’s crude oil, ongoing regional conflicts continue to impact raw material availability.
On top of this, the military strike on the Jubail petrochemical complex in Saudi Arabia back in April disrupted production of high purity polyphenylene ether (PPE) resin, which is a critical base material for PCB laminate manufacturing. This facility has not resumed operations since the attack, Since the site accounts for 70% of the worlds high-purity PPE resin supply this has had a further impact on laminate production.
PPE resin is used in the production of high-frequency and high-reliability PCB laminates, particularly in materials like Rogers 4350B and similar products used in RF design, automotive electronics, and industrial control systems. When the Jubail complex stopped producing, it did not simply create a short-term shortage. It exposed how concentrated global supply of this critical input had become.
What does this mean for PCB supply?
Whilst we continue to work closely with our supply chain partners to secure materials and minimise disruption, the current market conditions may result in:
- Extended lead times on some PCB orders
- Increased raw material and manufacturing costs
- Reduced availability of certain laminate grades and specifications
Will this affect UK orders?
This may affect UK PCB laminate supplies to some extent, but we do currently hold good stock levels. We are actively monitoring the situation and taking all possible steps to protect our customers from the impact of these market conditions. However, should significant changes to lead times or pricing become unavoidable, we will communicate these as early as possible.
We remain committed to providing transparent updates of supply wherever possible. If you have upcoming projects or forecast requirements, we encourage you to discuss them with us at the earliest opportunity so that material availability can be planned accordingly.
Thank you for your continued support and understanding.