Speaker A
This is a printed circuit board, the base underneath every single chip inside every electronic.
CNBC looks at how printed circuit boards may become the next AI bottleneck, as demand from data centers and defense surges and US manufacturers seek to reclaim share from China.
Key Takeaways
- PCBs are becoming a critical bottleneck in the AI supply chain.
- Heavy dependence on Chinese manufacturing for AI-related boards is a strategic concern for the US.
- Defense requirements and AI demand together are pushing circuit board prices and demand sharply higher.
- US manufacturers like TTM are positioned to benefit from reshoring pressure.
What the video covers
- Printed circuit boards (PCBs) are the base underneath every electronic chip and device, from iPhones to fighter jets to Nvidia AI server racks.
- Nearly all circuit boards used in AI data centers are currently made in China, though the US still produces them.
- Demand for circuit boards has skyrocketed due to AI chip demand and wars in Iran and Ukraine.
- US Department of Defense rules require every circuit board it uses to be made in the US to prevent malicious components from entering military systems.
- The US wants AI industry growth to translate into orders for domestic manufacturers, especially in critical sectors.
- Circuit board prices have been soaring as AI data center networking and defense demand converge.
- The report visits TTM in Santa Ana, California, described as the biggest circuit board manufacturer in the country.
- Circuit boards have historically been a quieter part of the chip ecosystem but are now drawing attention as a potential bottleneck.
Chapters
- 00:00Introduction to printed circuit boards
- 00:13US manufacturers and critical sector demand
- 00:37Dependence on China for AI and defense boards
- 00:51Demand surge from AI chips and geopolitical wars
- 01:04Defense rules requiring US-made boards
- 01:19Soaring prices and converging demand signals
- 01:30Visit to TTM in Santa Ana, California
Full Transcript — Download SRT & Markdown
Speaker A
This one is a motherboard that [music] would actually go into a networking and communication customer of ours.
Speaker A
This one is a motherboard that would actually go into a networking and communication customer of ours.
Speaker A
We want to make sure as the AI industry explodes, as demand explodes, [music] that we can count upon some of that demand coming to US manufacturers particularly for critical sectors.
Speaker A
From iPhones to fighter jets to the most powerful AI server racks by the likes of Nvidia. The problem is the vast majority of these, and nearly all of those used in AI data centers, are currently made in China. But the US still makes them too.
Speaker A
skyrocketed in recent years mostly because of the demand for AI chips and the wars in Iran and Ukraine. Because every circuit board used by the US Department of Defense must be made in the US to keep malicious components from
Speaker A
We want to make sure, as the AI industry explodes, as demand explodes, that we can count upon some of that demand coming to US manufacturers, particularly for critical sectors.
Speaker A
East. And all this means circuit board prices have been soaring, too. You have two very large demand signals, AI data center networking and defense, coming together at the same time.
Speaker A
So we came here to Santa Ana, California, to see how it's done by the biggest manufacturer of circuit boards in the country, TTM. Until now, circuit boards have been a quieter part of the chip making ecosystem, but not anymore. Demand has skyrocketed in recent years, mostly because of the demand for AI chips and the wars in Iran and Ukraine.
Speaker A
for the full story.
Topics:printed circuit boardPCBAI chokepointdata center networkingsupply chainTTMDepartment of Defensesemiconductor manufacturingreshoringNvidia
