Goldman Sachs Forecasts 140% CAGR for AI PCB Market, Raises TAM to $26.6 Billion by 2027

Goldman Sachs Raises AI PCB/CCL Market Projections by 53%

Goldman Sachs has published a landmark report on the AI-driven PCB and copper-clad laminate (CCL) markets, raising its total addressable market (TAM) projections for 2027 by a significant margin. Led by analysts Chao Wang and Allen Chang, the report — released in early 2026 and now gaining widespread attention as its predictions materialize — pegs the AI PCB TAM at $26.6 billion, up from a prior estimate of $17.4 billion. The AI CCL TAM surges to $18.3 billion from $8 billion, representing compound annual growth rates of 140% for AI PCBs and 178% for AI CCLs between 2025 and 2027.

These figures represent some of the most aggressive growth projections ever issued for the PCB substrate industry, and they are already reshaping how manufacturers, material suppliers, and investors approach capacity planning for the next 18 months.

Nvidia’s VR200/300 Architecture Drives Fundamental Demand Shift

The core driver behind Goldman’s upgraded forecast is not incremental demand growth, but an architectural revolution in how AI server racks are constructed. Nvidia’s next-generation VR200 and VR300 rack designs are replacing traditional bridge cables with integrated PCB and CCL components — midboards and backplanes that serve as the primary interconnect fabric between GPU modules.

This swap delivers multiple benefits for system builders: reduced assembly cost, improved computing performance through shorter signal paths, and higher density packaging. For the PCB industry, however, it represents a transformative multiplier on per-unit value. Each GPU rack now requires substantially more advanced PCB content measured in both area and complexity, driving the value-per-unit of core PCB components sharply upward.

Goldman’s analysts project that demand for advanced midboards and backplanes will accelerate significantly in the second half of 2026 and again in H2 2027 as hyperscale data center deployments of VR200/300 architecture ramp to volume production.

Layer Counts Push Past 40 — Yield Challenges Emerge

The specification upgrades accompanying this architectural shift are equally consequential for manufacturers. Mainstream AI server PCBs will jump from 24-28 layers in 2025 to over 40 layers by 2027, according to Goldman’s projections. HDI technology requirements advance from 4+N+4 constructions (four sequential lamination cycles per side) to 6+N+6, demanding manufacturing capabilities that only a handful of fabricators worldwide currently possess.

This complexity escalation creates a compounding effect on material consumption. Higher layer counts require proportionally more copper-clad laminate per board, while the tighter design rules at 40+ layers demand premium low-loss, low-CTE materials that carry significant cost premiums over standard FR-4.

Perhaps most significantly, Goldman projects production yields will fall from approximately 73% in 2025 to 62% by 2027 as these complexity thresholds are crossed. Lower yields mean that even more raw CCL material must enter the manufacturing pipeline to produce each finished board, further amplifying demand growth for the laminate sector and pushing CCL market growth ahead of the already-explosive PCB segment.

Competitive Landscape: Top-Tier Manufacturers to Dominate

The yield challenge creates a natural moat around manufacturers with the most advanced process controls. Goldman Sachs expects the number of qualified AI PCB suppliers to expand from roughly five today to approximately ten by 2027, reflecting both the enormous market opportunity and the technical barriers that prevent rapid entry by lower-tier fabricators.

For the ASIC-related PCB supply chain, conditions remain more stable — the technical requirements, while demanding, are better established and yield curves more mature. The primary disruption concentrates in the GPU-linked segment where Nvidia’s architectural decisions are reshaping what “state of the art” means for PCB manufacturing.

Goldman maintains buy ratings and has raised target prices for leading Taiwanese manufacturers EMC (Elite Material Co.), GCE (Gold Circuit Electronics), and TUC (Taiwan Union Technology Corporation), identifying them as the primary beneficiaries of the AI infrastructure buildout.

Implications for PCB Buyers and Engineers

For engineers and procurement teams sourcing advanced PCBs, these market dynamics carry immediate practical implications. First, lead times for high-layer-count HDI boards are likely to extend further through 2026-2027 as capacity is allocated to AI server production. Designers working on products requiring 20+ layer boards should plan for longer procurement cycles and consider qualifying secondary sources.

Second, material costs — particularly for premium low-loss laminates — will face upward pressure as AI demand absorbs available supply. Projects with flexibility on material grade should evaluate whether standard-performance alternatives can meet their electrical requirements, reserving ultra-low-loss materials for applications that genuinely need them.

Third, the concentration of advanced manufacturing capacity among a limited number of suppliers creates supply chain risk for anyone competing for the same fabrication slots as hyperscale AI deployments. Building relationships with manufacturers who have demonstrated capability in high-layer-count HDI production, and doing so before your design is finalized, provides meaningful scheduling advantage.

At AtlasPCB, we maintain fabrication partnerships with facilities qualified for 40+ layer HDI production and can support both prototype and volume builds for complex designs. For engineers designing boards that fall in the 8-30 layer range — the workhouse territory for most high-reliability applications — the current market dynamics actually present an opportunity: fabricators are investing heavily in new capacity and equipment across all complexity tiers, and those investments are improving capability and turnaround time across the board.

Sources: Goldman Sachs Research, “Taiwan PCB/CCL: AI Architecture Shift Drives TAM Upgrade” (January 2026); PCEA Market Watch (July 2026); DIGITIMES Asia.