By CIO Insider Team
 

The conflict in the West Asia and increased demand for AI servers have led to a shortage of printed circuit boards, an essential hardware component, resulting in a rise in prices within the electronics sector.

The shortage of printed circuit boards (PCB) — a hardware platform where components are mounted in electronic devices — arises from increasing material expenses, supply chain interruptions in major shipping lanes, and the redirection of components to premium artificial intelligence hardware.

The lack of PCBs occurs at a vital time for Indian industry, as numerous significant investments exceeding Rs 15,000 crore are planned under the Electronics Components Manufacturing Scheme (ECMS) alongside increasing domestic demand.

A top representative from the electronics manufacturing services company Syrma SGS informed PTI that the recent attack by Iran on Saudi Arabia's facilities has caused a shortage of certain chemicals needed for PCB production.

Also Read: Hyundai Motor India Appoints Mukundan MS as Whole-time Director & CMO

The ongoing quarter and the next quarter will keep experiencing pressure on material expenses. PCBs have unexpectedly become scarce due to an attack on a facility in Saudi Arabia by Iran.

Syrma SGS Technology Managing Director Jasbir Singh Gujral stated that they were managing 80 percent of the supply of a specialty chemical used in the production of a PCB.

Syrma SGS is among the candidates for the government's scheme focused on manufacturing electronic components. The company has secured approval for the production of PCBs too, but it remains several quarters from commercial production.

Gujral indicated that the civil construction for the company's planned PCB plant is 70 percent finished, with the remaining 30 percent expected to be completed by the end of this month.

Sure, please provide the text that you would like me to paraphrase. Production trials are expected to take place from January to March.

Also Read: PM to Inaugurate Major Airport, Semiconductor and Highway Projects

The ELCINA organization, representing manufacturers of electronic components, stated that key raw materials for PCB production, which have a significant reliance on imports, consist of Copper Clad Laminate Chemicals.

"Wipro and SGS Syrma are establishing the initial manufacturing facilities for CCL. Likewise, regarding Photoresists, there is complete import reliance and immediate localization initiatives are necessary," stated ELCINA Secretary General Rajoo Goel.

He mentioned that for plating chemicals (Cu, Ni, Au), etching chemicals, surface finishing and cleaning, along with pre-treatment, local capacity is only 20-40 percent, indicating that capacity expansion is essential.

Also Read: Microsoft Touts Flexible AI Models for Enterprise Control

"Prices of all key raw materials have risen in the past 8-9 months without exception; notably, low-bromine epoxy resin surged by approximately 70 percent, JUSHI 7628 glass cloth has doubled in the last 8 months, and costs for copper foil and electrolytic copper, an essential material, have gone up by more than 30 percent," Goel stated.