U.S. Pushes PCB Supply Chain Reshoring to Counter China's 60% Global Capacity Dominance
Claire Weston
China controls over 60% of global PCB capacity while the U.S. share has shrunk from roughly 30% to just 4% — Washington is now deploying tax credits and factory subsidies to rebuild the invisible foundation layer behind every chip.
What is a PCB, and why is it suddenly a national-security issue?
A PCB — printed circuit board, the physical backbone that wires chips and components together inside every electronic device — is the foundational layer connecting chips to the rest of a system.
Its multi-layer structure can theoretically harbor rogue components or malicious code. This means → whoever controls PCB manufacturing holds a potential back door at the very bottom of the electronics supply chain.
Mike Cadenazzi, U.S. Army assistant secretary for industrial-base policy, told CNBC that chips, substrates, and PCBs can all serve as entry points for malicious attacks — in extreme cases affecting missile guidance, data transmission, and weapons operation.
How wide is America's PCB capacity gap?
China commands over 60% of global PCB capacity; the U.S. share has fallen from roughly 30% to just 4%.
In plain terms = the U.S. was once a PCB powerhouse — now fewer than 1 in 20 boards are made domestically.
AI servers, high-performance computing, and defense demand are all surging at once. America's two largest PCB makers — TTM Technologies and Sanmina — cannot keep up, and commercial AI customers are now competing directly with defense programs for the same limited output.
How steep is the price spike, and who is paying?
Goldman Sachs data show PCB prices rose as much as 40% between March and April 2026; TTM raised product prices by 5% to 25% in May.
TTM's aerospace-and-defense head Cathie Gridley said commercial AI clients are willing to pay premiums to lock in capacity, pushing up prices across the board.
This reflects a structural tension: AI companies can outbid on price, but defense contracts may not match — the military risks being crowded out of capacity by AI demand.
What is Washington doing about it?
A bipartisan group in Congress has introduced the Protecting Circuit Boards and Substrates Act, proposing a 25% tax credit and $3 billion in subsidies to incentivize domestic factory construction and buy-American procurement.
TTM has simultaneously announced new plant expansions in New York and Wisconsin to boost onshore capacity.
In plain terms = the playbook mirrors the CHIPS Act — use tax breaks and direct funding to pull factories back onto U.S. soil.
What makes reshoring so difficult?
The U.S. Printed Circuit Board Association (PCBAA) estimates a modern PCB plant requires $250–400 million in investment, with high-end production cycles stretching to six months and heavy energy and water consumption.
TTM CEO Edwin Roks argues that future performance gains will depend less on any single chip and more on integrating multiple chips and modules — PCB becomes the core layer connecting the entire system.
This means → the strategic importance of PCBs will only keep rising, but so will the cost and time barriers to rebuilding the supply chain. Industry observers note Washington must balance cost competitiveness, supply-chain resilience, and national security — a trilemma that will be the ultimate test of whether the reshoring strategy can deliver.
Content is for reference only, not financial advice.