Indian electronics manufacturers are facing a shortage of printed circuit boards: global capacity is increasingly shifting to filling orders for artificial intelligence systems. The shortage is accompanied by an increase in the cost of raw materials for the production of circuits. In recent months, the prices of such materials have increased by 70-350%.
Indian industry is particularly sensitive to this wave as it imports 88% of its materials. Lack of supply is reflected in assembly costs. As a result, the competition for production capacity between the artificial intelligence and mainstream electronics sectors becomes a matter of final prices for buyers.
Manufacturers of home appliances, smartphones and cars began to abandon the usual discounts and raise prices. This means that the shortage costs are transferred from the production chains to the retail market. Rising PCB prices are already affecting multiple industries simultaneously, and India's dependence on imports is exacerbating the price impact of global capacity reallocation.