The copper clad laminate (CCL) industry for printed circuit boards is currently in an upward price cycle. Under pressure from rising upstream raw material costs and heightened downstream demand, leading laminate manufacturers have already issued multiple price increase notices to customers. Based on supply-demand imbalance cycle patterns, and considering that the raw material capacity expansion cycle is typically 1-2 years, the current upward trend is expected to last approximately one year, with prices remaining elevated and subject to possible volatility during this period.
1. Root Cause Analysis of the Price Increase
Rising imported raw material costs: Glass fabric, specialty resins, and other key upstream materials are heavily import-dependent. Supply chain cost increases and changes in customs clearance efficiency driven by international factors (including trade frictions and geopolitical tensions) directly raise the production cost of high-quality CCL. This price pressure is gradually being passed downstream to end customers.
High demand for advanced materials crowding out standard capacity: The explosive demand for high-performance laminates for AI computing, high-frequency, and high-speed applications is pushing leading manufacturers (such as Shengyi Technology, Kingboard Laminates) to redirect significant capacity toward higher-margin advanced product lines. As a result, capacity for standard laminates used in consumer electronics and household appliances is shrinking, worsening the market supply-demand imbalance and driving further price increases for baseline CCL models. In H1 2026, standard FR-4 laminates from tier-1 brands had already increased by 10-15%.
2. Response and Optimization Strategies
Given current market conditions, a dual optimization approach is recommended — addressing both the supply side and material selection:
Waiting for local capacity to come online (medium- to long-term strategy): Domestic resin and glass fabric manufacturers are accelerating verification and production expansion processes. As local raw materials are gradually scaled up and integrated into the supply chain, price pressure can be expected to ease in the medium term, though this requires time. Several Chinese resin manufacturers are already in the qualification stage with downstream laminate producers, with significant volume increases expected in H2 2027.
Switching to quality tier-2 laminates (short-term strategy): Amid high prices from tier-1 brands (Shengyi, Kingboard), a number of tier-2 manufacturers from South and East China have built strong reputations in the home appliance and consumer electronics markets thanks to their high price-performance ratio. These manufacturers generally maintain stable process control, and their price adjustments are relatively moderate — making them a viable alternative in the short term.
Leveraging specialized channels and warehouse inventory: Platform-based manufacturers (such as JLC and similar) not only offer tier-1 laminates but also stock certified tier-2 laminates in their warehouses. During price increase periods, such channels can often provide more flexible small-batch supply terms and a price buffer, serving as an important supplement for mitigating short-term price pressure.
3. Risk Management Recommendations
When substituting laminates, thorough process compatibility testing is critical to ensure that tier-2 laminates meet product requirements on key parameters — impedance, thermal resistance, peel strength. It is recommended to establish regular technical exchanges with laminate suppliers and complete a full reliability verification cycle before introducing new SKUs, including thermal stress testing, CAF (conductive anodic filament) testing, and long-term aging — ensuring that product reliability is not compromised.
Comments …