Thai PCB Exports Seen Slowing as AI Bubble Risks Rise
Thai PCB exports are forecast to slow next year as the Kasikorn Research Center warns of a possible AI bubble burst. While AI and data‑center demand has driven strong growth in PCB shipments, rising investment and regulatory hurdles could curb future expansion. The center notes that export growth, which has outpaced the global market, may decelerate in 2027 if AI investment cools.
The Kasikorn Research Center notes that growth in AI and data‑center demand is boosting global PCB demand, especially for server, storage and telecom equipment, whose share is forecast to rise from 33% in 2025 to 40% by 2029, highlighting the increasing influence of these sectors on the PCB industry and creating opportunities for Thai producers that have invested in these markets. Investment in PCB manufacturing in Thailand has surged, expanding capacity to meet orders; investment jumped sharply in 2023 and is expected to keep growing through 2026, with first‑quarter 2026 spending already exceeding the full‑year 2025 figure at 11.343 billion baht, particularly for high‑end PCBs used in AI and data‑center equipment. However, the center forecasts that Thai PCB export growth will slow in 2027 compared with 2026 due to a higher base and a likely slowdown in AI investment, which could limit order growth for related PCBs even though long‑term demand in those segments remains upward. Key factors to watch include data‑center regulation and the uncertainty of returns on AI investment; permitting requirements, environmental standards and the readiness of power and water supplies could delay data‑center projects and associated PCB orders. Moreover, if AI returns fail to materialize clearly or an AI bubble bursts, companies may revisit their investment plans, hurting future PCB demand.
