Written by: Rita

AI servers are reshaping the supply and demand landscape of PCBs and upstream materials.

GF Securities (Hong Kong) pointed out in the PCB industry research report released on August 10 that NVIDIA's Vera Rubin is expected to start shipping in September, with about 10,000 containers shipped by the end of the year and about 80,000 containers in 2027. The single GPU PCB value will increase from $400 for GB200 to $750. Google TPU v8t/v8i is expected to ramp up starting in Q4 2026, with an estimated 120,000 containers in 2027, and the PCB single machine value is expected to be between $800 and $1,000.

GF expects the AI server PCB TAM to expand from approximately $13 billion in 2026 to $29 billion in 2027. Structural shortages of upstream materials are becoming the hardest constraints in the entire industry chain.

The AI PCB market will double in a year

NVIDIA's Vera Rubin is the largest incremental source in 2027.

Approximately 10,000 containers will be shipped by the end of 2026, and about 80,000 containers in 2027. The single GPU PCB value will increase from $400 for GB200 to $750. Google TPU v8t/v8i is expected to ramp up starting in Q4 2026, with an estimated 120,000 containers in 2027, and the PCB single machine value is expected to be between $800 and $1,000, higher than the $700 for v7. Together, the TAM for AI server PCBs will expand from approximately $13 billion in 2026 to $29 billion in 2027.

Zhen Ding is the preferred target for AI PCBs.

GF expects its market share in NVIDIA compute trays to have risen to around 30%, ramping up from the end of June. It has entered the Google v8 platform and will ramp up further in 2027. The pricing of mSAP in optical modules has risen about 30% in Q1 2026, and GF expects further price increases in H2 2026. Zhen Ding has announced an investment of 10 billion New Taiwan dollars for mSAP and FPC capacity expansion starting in July 2026.

In the ABF substrate area, industry lead times have been extended to around 12 months, and some customers have locked in capacity until 2029. GF expects another round of price increases before the end of 2026. Zhen Ding's earnings per share are expected to be 19.46 and 36.47 New Taiwan dollars for 2026 and 2027, respectively, with a target price of 729 New Taiwan dollars, corresponding to a 20x price-to-earnings ratio in 2027.

Taiwan Glass dominates AI CCL, M8+ drives profit expansion

Taiwan Glass is a core player in the AI CCL market.

Its market share on the Google platform has risen from about 30% to 70%. Google is expected to ship approximately 20,000 containers this year, upgrading from M7+ materials. On the NVIDIA Vera Rubin platform, Taiwan Glass has seen a decline in market share in compute trays and switch trays, but it remains first in midplanes and LPUs. It continues to maintain a dominant position on the AWS platform. GF expects AI revenue to account for over 60% of Taiwan Glass's total revenue in 2027, further pushing gross margins to expand to 36.8%.

Taiwan Glass has implemented two rounds of price increases in March and April 2026. Low-end materials have increased by about 40%, and M7+ products by about 25%. GF expects a further increase of 10% to 15% in Q3 2026. With long-term agreements with major copper foil suppliers, Taiwan Glass has an advantage in raw material procurement costs compared to smaller competitors.

Taiwan Glass's earnings per share are expected to be 114.89 and 261.50 New Taiwan dollars for 2026 and 2027, respectively, with a target price of 6538 New Taiwan dollars, corresponding to a 25x price-to-earnings ratio in 2027.

Copper foil and glass fiber cloth shortages expected until 2028

The supply constraints of E-glass and HVLP4 copper foil are the biggest limitations in the PCB industry.

GF estimates that the current supply gap for E-glass is about 15%. The price of 7628 cloth has exceeded 8.5 RMB per meter, and 1080 cloth has surpassed 10.5 RMB per meter. Even if 1,000 weaving machines are added specifically for E-glass production, the market is still expected to be in short supply by about 14% in 2027. Toyota's weaving machine orders are filled until 2028, and it takes over a year from ignition to mass production of yarn, indicating extremely low supply elasticity.

The shortage of HVLP4 copper foil is even more serious.

GF expects that by the end of 2026, global HVLP4 production capacity will be only about 1,250 tons per month, with demand around 1,650 tons per month, creating a gap of at least 400 tons per month. The processing fee for HVLP4 has risen to approximately $30,000 per ton, and GF predicts a second round of price increases in H2 2026. The capacity bottleneck of surface treatment equipment is the core limitation on supply expansion, with Mitsui and Shinkong having an annual delivery capacity of less than 20 production lines, and equipment orders filled until 2028.

Jin Ju is a scarce target for HVLP4 copper foil.

As one of the few suppliers in the world capable of mass-producing HVLP4 copper foil, Jin Ju has entered the supply chains of NVIDIA Rubin, Google v8, and AWS Trainium3 through long-term agreements with Taiwan Glass. GF expects HVLP3/4 products to account for 47% of Jin Ju's total revenue in 2027, with a gross margin of 52%. Jin Ju's earnings per share are projected to be 9.98 and 24.02 New Taiwan dollars for 2026 and 2027, respectively, with a target price of 480 New Taiwan dollars, corresponding to a 20x price-to-earnings ratio in 2027.

Kinwong is the core beneficiary of the E-glass and FR-4 price increase cycle.

With vertical integration capabilities, Kinwong has ensured stable CCL production amid E-glass shortages while minimizing the impact of upstream price increases. GF expects Kinwong's gross margins to expand to 35.7% and 46.5% for 2026 and 2027, respectively. High-end glass fiber and HVLP3/4 copper foil will become new growth engines, with AI-related products expected to contribute approximately 10% to earnings per share in 2027. Kinwong's earnings per share are projected to be 3.09 and 6.60 Hong Kong dollars for 2026 and 2027, respectively, with a target price of 60.8 Hong Kong dollars.

The demand from AI servers for PCBs and upstream materials is upgrading from a “quantity” logic to a “dual-driven quantity and price” logic. The increase in PCB layers, material upgrades, and enhancements in copper foil specifications are driving up the single machine value at every stage. The structural shortage of upstream materials is the most important constraint in this cycle and represents the greatest pricing power. GF's judgment is that the supply bottlenecks of E-glass and HVLP4 copper foil will be difficult to resolve before 2027, and companies with scarce capacity and technological barriers will continue to gain pricing power.

Disclaimer

This article is a compilation and interpretation by Trend Research of third-party brokerage research reports (GF Securities (Hong Kong), August 10, 2026), combined with publicly available market information. The ratings, target prices, earnings forecasts, and related judgments cited in the text represent the opinions of the analyst from that brokerage firm and only reflect the stance of their affiliated institution, not the views of Trend Research and do not constitute any investment advice.

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