The AI hardware crunch has reached the humble circuit board

The AI hardware crunch has extended beyond memory and graphics chips to circuit boards, affecting PC makers worldwide. As data centers demand AI chips, manufacturers are struggling to keep up with the increased demand, pushing PC orders to the back of the line. Companies like HP and Dell are now concerned about getting enough circuit boards for their 2027 plans.

High-end AI server boards, with their complex layers of low-loss laminate and specialty glass fabric, require more material and factory time than traditional desktop motherboards. This has resulted in soaring costs for these boards, with one Taiwanese manufacturer reporting a 12-fold increase in laminate prices since July. Leading laminate suppliers are also facing long waits, with order books extending into 2030 despite plans to triple capacity by 2028.

The board-making industry is facing a shortage of engineers, causing lead times to double for many products. In some cases, orders placed today won't arrive until late 2028. This has led to significant challenges for other industries as well, such as Canon, which has been impacted by AI-driven component shortages, leading to production delays and a projected loss of ¥90 billion in medical equipment sales for the year.

The ripple effects of these shortages are also impacting PC buyers. Memory and storage prices have risen, potentially leading to the disappearance of sub-$500 PCs by 2028. Even high-end graphics cards like the RTX 5080 have seen dramatic price increases, now selling for nearly $2,000. While some industry experts believe PC prices could fall by 2027, the reality is that a board ordered today might not even ship by then.