The Impact of DeepSeek’s Success on PCB Price： The global PCB (Printed Circuit Board) market in 2024 is experiencing an overall decline in both demand and prices. According to industry reports, the global PCB market value is projected to shrink by approximately 5-7% compared to 2023. However, certain segments, such as High-Density Interconnect (HDI) PCB manufacturing, have managed to achieve business growth. The global HDI PCB market is expected to reach $16.5 billion by the end of 2024, growing at a CAGR of 8.2%. One of the major contributing factors to this growth is the rapid expansion of artificial intelligence (AI) applications. Nevertheless, the recent success of DeepSeek could significantly alter the landscape of AI-driven PCB demand.

PCB Price

The Impact of DeepSeek’s Success on PCB Price， Current Trends in the PCB Market

Throughout 2024, the PCB industry has been facing downward pressure on pricing due to multiple factors, including reduced consumer electronics demand, economic uncertainties, and a slowdown in traditional industrial applications. Despite this, the HDI PCB sector has bucked the trend, showing growth thanks to increasing AI adoption in data centers, high-performance computing, and advanced semiconductor packaging. AI-related hardware currently accounts for nearly 25% of the total demand for HDI PCBs, up from 18% in 2022.

In contrast, the consumer electronics segment, which traditionally drives a large portion of PCB demand, has seen a decline of over 10% in orders, as global smartphone and laptop sales remain sluggish. PCB pricing has fallen by an estimated 6-9% across standard multilayer boards due to weaker demand.

The Impact of DeepSeek’s Success on PCB Price， AI-Driven Growth in PCB Demand

Artificial intelligence has been a major driver of demand for high-end PCBs, particularly in servers, networking equipment, and AI accelerators. AI hardware requires complex PCB structures with high-speed signal transmission and excellent thermal management, fueling demand for HDI and advanced multilayer PCBs. Many manufacturers have benefited from this trend, enjoying higher revenue despite the general industry downturn.

• AI accelerator PCB demand surged by 20% in 2023 and is projected to grow another 15% in 2024.
• Leading AI chipmakers such as NVIDIA, AMD, and Intel have increased orders for substrate-like PCBs (SLP) and high-layer count (HLC) PCBs, which are essential for AI computing infrastructure.
• China’s PCB market has seen a 12% rise in AI-related PCB production, driven by domestic chip advancements and AI server expansions.

The Impact of DeepSeek’s Success on PCB Price，The Role of DeepSeek and Its Impact on AI Hardware Needs

DeepSeek’s recent breakthroughs in AI development may shift the dynamics of AI-driven hardware demand. If DeepSeek’s AI models become more efficient in processing and computational power, there could be a decrease in the reliance on large-scale, high-end PCB infrastructure. Potential impacts include:

1. Reduction in AI Hardware Expansion: More efficient AI models could reduce the need for massive GPU clusters and dedicated AI servers, directly affecting the demand for specialized PCBs used in high-performance computing.
   • If AI efficiency improves by 30%, data centers may require fewer high-end AI chips, reducing the total demand for complex HDI PCBs.
2. Shift Towards Cost-Effective Solutions: If DeepSeek’s advancements lead to AI systems requiring less hardware-intensive processing, manufacturers may shift towards simpler, lower-cost PCB designs, further exerting downward pressure on prices.
   • Entry-level AI applications may increase demand for four- and six-layer PCBs, which are more affordable than complex HDI boards.
3. Diversification of AI Applications: On the other hand, improved AI capabilities could expand AI’s use across various industries, creating new opportunities for PCB manufacturers in emerging markets such as smart automation, robotics, and edge computing.
   • The AI-enabled IoT (Internet of Things) market is forecasted to grow by 35% annually, presenting new avenues for PCB suppliers specializing in smart device integration.

Conclusion

While AI-driven demand has provided a cushion for certain PCB manufacturers amidst a declining market, DeepSeek’s success introduces a new variable that could reshape future PCB pricing and demand patterns. If AI efficiency improves drastically, the need for high-performance PCB solutions may decline, leading to additional pricing pressures. However, new applications of AI may still create fresh demand for PCB technologies, potentially offsetting some of the negative impacts.

PCB manufacturers will need to stay agile, monitoring DeepSeek’s advancements and adapting their production strategies accordingly. Companies that can pivot towards emerging AI applications while optimizing costs will be best positioned to navigate the shifting market landscape. The balance between AI hardware demand and efficiency gains will be a key determinant of PCB pricing trends in the coming years.
our linkedin sqpcb.com