PCB cost inflation: These stocks are the winners and losers
PCB prices are rising due to copper and glass fiber shortages, benefiting upstream suppliers like Kingboard Laminates (1888) and Panasonic (6752), while downstream fabricators like Victory Giant Tech (2476) and Eltek Ltd (ELTK) face margin compression. Copper futures are up 45% year-over-year, and glass fiber shortages are causing production delays. Citi raised its target for Kingboard to HK$95, citing pricing power.
How this was made
The 30-second read
Why it matters
Upstream CCL makers benefit from pricing power, while fabricators see margin erosion, creating a clear winner‑loser landscape.
Market read
The cost squeeze creates trading themes: buying upstream winners and shorting downstream losers.
What to watch
Potential policy changes on copper tariffs and future supply‑chain adjustments could alter the cost dynamics.
Background
The article discusses a sector‑wide cost inflation in PCB manufacturing driven by copper and glass fiber shortages, affecting both upstream suppliers and downstream fabricators.
Ticker impact
Eltek reported a Q2 2026 net loss of $2.7M due to raw-material shortages, highlighting margin pressure for PCB fabricators.
Potential downside of 5‑10% over the next week.
Loss and material shortage guidance are fresh disclosures affecting valuation.
Market effects
Rising copper and glass fiber costs pressure PCB fabricators while benefitting upstream CCL producers.
Asian PCB and electronics manufacturers face margin compression, potentially affecting regional indices.
Cost inflation in PCB supply chain may ripple through AI server and semiconductor markets worldwide.
Counterpoint
Investors could view the price declines of fabricators as buying opportunities if cost‑pass‑through improves.
Key entities
- CompanyEltek Ltd
Israeli PCB fabricator reporting Q2 loss.
- CompanyKingboard Laminates
Largest CCL producer with strong price gains.
- CompanyVictory Giant Tech
PCB fabricator experiencing share decline.
