Goldman Sachs significantly raises expectations for the PCB market size: simultaneous increases in volume and price, plus specification upgrades—compound growth over this year and next is expected to exceed 140%!

Goldman Sachs has made an aggressive upward revision to the potential market size (TAM) for AI PCB/CCL.

According to the WindChaser Trading Desk, the team of Goldman Sachs analysts Chao Wang and Allen Chang released a research report on Taiwan's PCB (Printed Circuit Board) and CCL (Copper Clad Laminate) industry on January 6, 2026. Goldman Sachs raised the 2027 TAM for AI PCB from the previously expected $17.4 billion to a whopping $26.6 billion, and for CCL from $8 billion to $18.3 billion. This means that the compound annual growth rates (CAGR) between 2025 and 2027 will reach an astounding 140% and 178%, respectively.

This growth is not a linear extrapolation, but is based on precise calculations driven by architectural change:

“A key reason why our global team has sharply raised the AI PCB/CCL TAM is that we have included the added PCB/CCL content inside VR200/300 racks. These new components will replace bridge cables (switching from cables to PCB) to improve overall cost structure and enhance computing performance.”

For investors closely watching the AI hardware supply chain, this report sends a clear signal: With the momentum from new-generation architectures like Nvidia's GB300, the PCB industry is undergoing a qualitative shift from mere “shipment growth” to explosive “value growth.” The expansion of AI infrastructure is far from over, and as technical architectures evolve, the market space (TAM) for core components is undergoing a radical revaluation.

Architectural Change: Cables Disappear, PCB Takes the Stage

Why such an aggressive outlook? The core logic lies in the structural changes brought by Nvidia’s new-generation architecture (VR200/300 rack). Traditional cables are being phased out, replaced by more complex PCB/CCL components. This switch from “wires” to “boards” directly improves cost structure for compute expansion, but dramatically increases the value of PCB. The report notes that new midplane and backplane demand will erupt in late 2026 and late 2027, and the PCB/CCL value per single GPU will multiply.

This so-called “specification upgrade” is not just empty talk–it translates directly into real technological barriers and durable profits. As mainstream PCB specs upgrade from 24-28 layers in 2025 to above 40 layers in 2027, and HDI tech specs leap from 4+N+4 to 6+N+6, production difficulty surges.

“We have factored in yield losses in PCB production over the next few years (expected to drop from 73% in 2025 to 65%/62% in 2026/27)… This will force long-term increases in CCL usage, causing the AI CCL market to grow even faster than the AI PCB market.”

Yield “Trap” Boosts Raw Material Demand, Goldman Sachs Targets High-End Taiwanese Suppliers

For investors, this means the industry is undergoing a brutal but beneficial “cleansing”: The more complex the boards, the higher the price; the leading manufacturers capable of handling low yield challenges will dominate the market.

In this feast, GPUs are still the absolute protagonists, but ASICs (Application-Specific Integrated Circuits) cannot be ignored. Goldman Sachs forecasts that the PCB/CCL market related to GPUs will surge nearly tenfold in two years, while the ASIC market will double. Although new suppliers are trying to enter the GPU market and take a share—making competition more crowded (expected to see PCB suppliers increase from 5 to 10)—the ASIC supply chain remains relatively stable.

Goldman Sachs has maintained “Buy” ratings for EMC, GCE, and TUC and raised their target prices across the board. For capital seeking certainty, these high-end players—who master core materials and processes—remain the biggest winners in the current AI infrastructure boom.

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The above content is from WindChaser Trading Desk.

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