PCB Raw Material Shortage May Cut India's Electronics Production By 30-40%

India’s electronics manufacturing sector is facing a major supply challenge as shortages of key raw materials used in printed circuit boards (PCBs) threaten to impact production across smartphones, consumer electronics, telecom equipment and automotive electronics segments.

Industry bodies have warned that output could decline by 30-40% over the next three months if the supply situation does not improve.

The Electronics Industries Association (ELCINA) and India Printed Circuit Association (IPCA) have approached the government seeking temporary measures to support manufacturers and prevent further disruption.

The shortage has been attributed to a combination of rising global demand for advanced PCBs used in artificial intelligence (AI) servers, increasing requirements from 6G infrastructure projects and supply-chain disruptions caused by geopolitical tensions in West Asia.

The crisis comes at a crucial time as India is attempting to strengthen domestic electronics manufacturing through initiatives such as the Electronics Components Manufacturing Scheme (ECMS).

IPCA is expected to seek import duty exemptions on critical PCB materials, working capital assistance for smaller manufacturers and emergency financial support to help companies deal with the supply shock.

The association has also requested that traders be allowed to import copper clad laminates (CCL) without duties, similar to manufacturers, until domestic capacity improves.

Industry experts said immediate support measures should be targeted and time-bound to avoid affecting India’s long-term manufacturing goals.

Analysts noted that working capital support could be particularly important for smaller manufacturers struggling with rising costs.

The shortage has been intensified by a steep rise in raw material prices. According to IPCA, copper clad laminate prices have increased by more than 300% over the past year, while prices of several other inputs have risen by up to 200% in six months. Global suppliers have reportedly announced repeated price hikes since 2025.

Supply disruptions at Saudi Arabia’s Jubail petrochemical complex have also affected availability of polyphenylene ether resin, a key material used in CCL production. Supplies of epoxy resins and other specialty chemicals required for PCB manufacturing have also tightened.

Companies are preparing for prolonged shortages by increasing inventories and strengthening supply-chain monitoring. Industry leaders said accelerating domestic PCB and raw material manufacturing projects will be essential to reducing import dependence and building a resilient electronics ecosystem.