TPCA Analysis: PCB Investment in Southeast Asia Faces Tariffs and Talent Bottlenecks

According to an analysis by the Taiwan Printed Circuit Association (TPCA), Thailand has emerged as a standout in Southeast Asia’s PCB industry, benefiting from its mature local electronics supply chain and sustained foreign investment, particularly in building mid‑to‑high‑end capacity for rigid board manufacturing. As major PCB manufacturers from Taiwan and China complete their investments in Thailand, the country is expected to play an increasingly prominent collaborative role in the regional supply chain. The Industrial Technology Research Institute’s International Strategy Office (ISTI) estimates that with new production lines gradually coming online, Thailand’s PCB output value will reach US$3.9 billion in 2025, representing an 11.4% year‑on‑year increase and accounting for approximately 4.6% of the global market.

Vietnam has rapidly risen in recent years as a major electronics manufacturing services (EMS) hub, attracting deep involvement from international giants such as Samsung and building a vast assembly and manufacturing cluster. However, the upstream PCB supply capacity in Vietnam remains notably insufficient, making it the country most dependent on PCB imports in the region. By 2025, Vietnam’s PCB output value is projected to reach US$3.4 billion, up 9.7% year‑on‑year, accounting for about 4% of the global market. Yet Vietnam’s industrial development continues to be constrained by infrastructure bottlenecks, particularly the risk of power shortages.

Compared with Thailand and Vietnam, Malaysia has long been a key semiconductor base in Southeast Asia, with a complete IC packaging and testing capability and an established equipment manufacturing system. Beyond exports to China, Malaysia also steadily supplies Singapore and Thailand, demonstrating its regional supply‑chain coordination ability. This foundation gives Malaysia strategic potential to undertake high‑end PCB applications, especially substrate manufacturing.

However, since the Trump administration pushed for reciprocal tariff policies, economies with export structures heavily reliant on the U.S. market have faced substantial pressure. The three Southeast Asian countries are actively adjusting their policies, offering fiscal incentives, upgrading industries, and diversifying export markets to mitigate their over‑reliance on the U.S. and maintain export competitiveness, thereby enhancing their strategic positions in the global supply chain.

Moreover, as Southeast Asia becomes a key destination for global manufacturing capacity expansion, the supply of both grassroots and technical labour is becoming increasingly tight. This not only poses risks to the stable operation of new production lines but also affects capacity release and yield improvement, thereby slowing the overall pace of industrial expansion. Looking at Thailand, Vietnam, and Malaysia, while each has its own advantages in the PCB sector, energy supply, talent shortages, and reciprocal tariff policies all add uncertainties to the region’s future industrial competitiveness.