Nan Ya prepares up to 25% price increases on electronic board materials

Nan Ya Plastics has informed its customers of a price increase of between 20% and 25% for its copper-clad laminates (CCL) and prepreg starting September 1, 2026, according to a commercial notification dated August that is circulating among clients and suppliers. The company attributes the decision to the widespread rise in raw material costs and, in particular, a shortage of fiberglass fabric that is stressing an often unseen but essential part of the circuit board manufacturing supply chain.

Key points about Nan Ya’s increase in 20 seconds

• Nan Ya announces a 20% to 25% increase for CCL and prepreg starting September 1.
• The company cites the growing shortage of fiberglass fabric as the main issue.
• CCLs are the base material used to produce printed circuit boards (PCBs).
• The pressure has been building during 2026 and mainly affects advanced electronic materials.
• The growth of AI servers and high-performance computing is increasing demand.

The company’s official letter explains that since the beginning of the year, the global electronic materials market has experienced a significant imbalance between supply and demand. Nan Ya claims to have tried to absorb some of the increased costs internally but states that the current rise in production expenses now exceeds their capacity to maintain previous prices.

This notification also aligns with signals Nan Ya has been sending throughout 2026. In March, it communicated that its electronic materials already represented more than half of its monthly revenue and acknowledged that the expansion of the AI market, coupled with shortages of mid- and high-end materials, was affecting the availability of more conventional electronic products.

Therefore, the issue goes beyond a simple isolated price hike.

What are CCLs and why does a fiberglass shortage matter?

A copper-clad laminate, commonly known as CCL (Copper Clad Laminate), is one of the fundamental materials used to manufacture printed circuit boards, or PCBs.

Its structure may seem simple: it combines fiberglass fabric impregnated with resin and one or more copper sheets. Electrical traces and connections are then built upon this base, forming the circuits used in servers, computers, telecommunications equipment, automotive systems, and virtually any complex electronic device.

The prepreg, also included in Nan Ya’s announced increase, is an intermediate material made of resin-impregnated fabric used both in manufacturing CCLs and to bond layers in multi-layer PCBs.

Nan Ya’s corporate documentation confirms how these raw materials are interconnected. The company produces CCLs, prepreg, epoxy resins, copper foils, and fiberglass fabric, and consumes a significant portion of these materials internally to manufacture its own laminates.

Fiberglass fabric now appears as one of the main issues.

Nan Ya states that its fiberglass fabric shortage has become ““particularly severe,”” with the supply-demand gap widening monthly. It claims this is causing a difficult-to-absorb increase in procurement costs.

This isn’t the first signal pointing in that direction.

In June, Nan Ya’s President Chou Ming-jen admitted that the company was still negotiating prices with customers due to high demand for electronic-grade fiberglass fabric. Other CCL manufacturers also increased prices during the first half of the year.

AI is raising the standards for electronic boards

Part of the pressure stems from the growth of AI servers and high-performance computing (HPC).

These systems require larger and more complex boards capable of connecting accelerators, processors, memory, network controllers, and other components functioning at ever-increasing speeds.

This demands improved materials as well.

Boards designed for advanced systems need to control characteristics such as signal loss, dimensional stability, and thermal expansion. As sizes, layer counts, and transmission speeds increase, small variations in materials can become manufacturing or reliability issues.

As a result, demand is shifting towards fiberglass fabrics with better electrical and thermal properties.

Nan Ya announced an increase in collaboration with Japanese company Nitto Boseki to produce fiberglass fabric for electronic substrate applications. The company explicitly linked this market growth to applications such as smartphones, computers, and AI servers.

Problems did not start in August.

Back in March, Nan Ya issued another communication forecasting a 15% increase for CCL and prepreg starting March 16, citing rising costs of processed copper and persistent shortages of electronic-grade fiberglass fabric. The Taiwanese sector confirmed at that time that suppliers of advanced CCLs were negotiating new prices with their clients.

By November 2025, the company had already implemented an 8% increase across its CCL and prepreg lines due to rising raw material costs.

The new range of 20% to 25% thus represents a significant acceleration of this pressure.

From data centers to a little-known material

This episode demonstrates how far the expansion of artificial intelligence infrastructure has advanced.

While most attention is focused on Nvidia or AMD GPUs, HBM memory, processors, and electrical capacity in data centers, producing hundreds of thousands of servers also requires large quantities of boards, connectors, substrates, copper, resins, and specialized materials.

Formosa Plastics Group, to which Nan Ya belongs, explains in its 2026 documentation that the growth of AI and HPC has increased demand for servers and simultaneously tightened the availability of advanced materials. It notes that this scenario has elevated both the volume and prices of CCLs, copper, and fiberglass fabrics.

The situation can be particularly delicate because increasing the production of these materials is not immediate.

High-performance board fabrics need to meet strict specifications and be qualified within supply chains. For specialized low-thermal-expansion varieties, industry analyses during 2026 already pointed to a constrained supply that could last until 2027 as new capacity is brought online.

This does not mean a 25% CCL increase will directly translate into the same percentage increase in servers, graphics cards, or computers. Laminates account for only a portion of the final cost, and manufacturers can absorb, negotiate, or offset variations among components.

However, it signals further pressure on the electronics supply chain.

Nan Ya sets September 1, 2026, as the effective date, using the shipping date as the reference. If the communication is implemented as described, customers receiving CCL and prepreg from that date will face prices 20% to 25% higher.

Future developments will depend on whether fiberglass fabric production can keep pace with the continuing growth in advanced electronics demand.