Written by: Rita
AI servers are becoming the strongest demand driver for the PCB and CCL industries. In a global PCB/CCL industry report released on August 5, Goldman Sachs raised its 2027 forecast for the global AI PCB market by 38% to $38 billion and increased its 2027 forecast for the AI CCL market by 18% to $22 billion. The 2028 projections are even more striking, with the PCB market expected to reach $84 billion and the CCL market to reach $48 billion, representing compound annual growth rates of 148% and 161% respectively from 2026 to 2028. Volume and price increases are the core drivers, with PCB shipment volumes growing at a CAGR of 85% and CCL shipment volumes at a CAGR of 77%, while ASPs are also rising in tandem due to specification upgrades. Goldman Sachs has issued buy ratings for multiple companies across the supply chain, covering the full spectrum from upstream materials to midstream manufacturing.
AI PCB market to grow tenfold in three years
Goldman Sachs has significantly raised its market size forecasts for AI server PCBs and CCLs. The AI PCB market is forecast to rise from $27 billion to $38 billion by 2027, while the AI CCL market is projected to increase from $19 billion to $22 billion. The 2028 forecasts are even more striking: the PCB market is expected to reach $84 billion, and the CCL market to reach $48 billion, with compound annual growth rates of 148% and 161% for AI PCBs and CCLs, respectively, from 2026 to 2028.
Growth drivers come from both volume and price. In terms of volume, PCB shipments will increase from 13 million square meters in 2026 to 45 million square meters in 2028, at a CAGR of 85%; CCL shipments will rise from 42 million sheets in 2026 to 131 million sheets in 2028, at a CAGR of 77%. Regarding ASP, the CAGRs for PCB and CCL ASP are 34% and 48%, respectively, with specification upgrades serving as the primary driver. The share of HDI PCBs with more than six layers in the total HDI PCB market will rise from 35% in 2027 to 66% in 2028, while the share of CCL rated M9 and above in the total CCL market will increase from 41% in 2027 to 58% in 2028.
Goldman Sachs also introduced backplane scenario analysis. In the NVL144 Rubin Ultra architecture, the single-unit value of the backplane PCB and CCL is $113,000 and $60,000, respectively. Under the optimistic scenario, the backplane PCB market could reach $1.17 billion by 2028, representing a 30% increase over the base case.
Production capacity expansion is lagging behind demand growth, supporting pricing through high utilization rates.
Although major manufacturers have announced capacity expansion plans, Goldman Sachs believes that the release of effective capacity will not grow linearly. Higher-layer products consume more capacity, and premium products have lower yields—these two factors together constrain the actual increase in effective capacity. Goldman Sachs assesses that industry capacity utilization will remain high over the next two years, and the supply-demand imbalance will persist.
From a supply chain perspective, the surge in demand for AI servers is driving a structural upgrade across the entire PCB/CCL supply chain. PCB layer counts are evolving from traditional server levels of 10–12 layers to over 30 layers, CCL materials are transitioning from M6 to M9, and HDI layers are advancing from 2–4 layers to 6–8 layers. Each of these upgrades signifies a significant increase in value per unit.
Goldman Sachs recommends Shengyi Technology and other PCB/CCL targets.
Goldman Sachs listed multiple buy-rated targets in its research report, covering the entire industrial chain from upstream materials to midstream manufacturing.
Shengyi Technology is a Goldman Sachs Conviction List stock and a global leader in CCL supply. The company is transitioning to M9-grade CCL from 2026 to 2027 to achieve lower signal loss and improved thermal performance. Goldman Sachs expects its net profit growth to reach 104% in 2026 and 73% in 2027, with AI server PCB revenue contributing approximately 40% by 2027 and exceeding 50% in the long term. Operating margins are projected to expand from 15% in 2025 to 20% in 2027.
Shenghong Technology benefits from the global expansion of AI infrastructure, increased value per unit due to higher PCB layer counts, the trend of PCBs replacing copper cables in AI servers, and its expansion into ASIC AI server customers from GPU AI server clients. The company’s three factories in Thailand are gradually coming online, with Factory A1 already in mass production and Factory A2 targeting mass production in Q3 2026.
Panasonic HD is transitioning from a structural reform phase to a growth phase. Its MEGTRON series CCLs and conductive capacitors lead in performance; MEGTRON 9 CCL has begun small-scale production for customer validation, with mass production expected in fiscal year 2028. The proportion of high-performance CCLs is projected to reach approximately 60% in fiscal year 2027.
Mitsui Mining holds approximately 80% of the global market share in high-end electrolytic copper foil, and its VSP series of ultra-low roughness, double-sided smooth copper foil resolves the conflict between signal transmission loss and adhesion in high-speed server substrates. Goldman Sachs forecasts a compound annual growth rate of 56% for its VSP product line from fiscal years 2026 to 2029.
Nitto Bosei is the market leader in low-dielectric glass fabric, having pioneered its commercialization in 1998. Its second-generation NER Glass holds a dominant market share with extremely high technical barriers. Goldman Sachs expects NER Glass to achieve a 60% CAGR in revenue from fiscal years 2026 to 2029.
AI servers are reshaping the growth trajectory of the PCB and CCL industries. A $84 billion AI PCB market and a $48 billion AI CCL market by 2028 represent an order-of-magnitude leap. The logic of rising volumes and prices is being realized across every link of the supply chain—through material upgrades, increased layer counts, larger panel sizes, and higher unit prices. Goldman Sachs’ investment thesis encompasses the entire value chain, from CCL materials and electrolytic copper foil to glass fabric and PCB manufacturing. Capacity expansion is lagging behind demand growth, and high utilization rates will continue to support pricing—forming the foundation of Goldman Sachs’ constructive outlook on the entire AI PCB/CCL supply chain.
Disclaimer
This article is a compilation and interpretation by Chaoxiang Research of a third-party brokerage research report (Goldman Sachs, August 5, 2026), combined with publicly available market information. The ratings, price targets, earnings forecasts, and related judgments cited herein reflect the views of the brokerage's analysts and represent the position of their respective institution, not the views of Chaoxiang Research, nor do they constitute any investment advice.
The market carries risks; make decisions independently. This article should not be used as a basis for buying or selling any securities.