[Industry News] PCB Industry Outlook Remains Positive for 2026

January 22, 2026

On January, Kaiyuan Securities recently released a research report stating that AI terminals are opening a new cycle in 2026, with the industry focusing on Apple, Huawei, optical components, PCBs, and other segments.

In 2025, the performance of the consumer electronics and components industry improved significantly, with PCBs leading in terms of growth.

The overall trend of the electronics sector was strong in 2025. Within the consumer electronics and components industries, the PCB industry significantly outperformed in both stock price gains and financial performance, primarily benefiting from the rapid iteration and mass shipment of AI products. The consumer electronics sector performed well, driven by new product launches and national subsidy policies stimulating demand. Passive components and the optical/optoelectronics sectors lagged behind the overall electronics industry. From an industry data perspective, traditional categories like mobile phones, PCs, and tablets maintained steady growth, while categories like AI glasses and AI servers showed a trend of rapid growth.

Regarding AI terminals, it is recommended to focus on four main themes in 2026: Apple, Huawei's HarmonyOS, AI glasses, and OpenAI hardware.

(1) Apple's Supply Chain: Apple holds a leading position in the global consumer electronics supply chain. Starting in 2025, the iPhone series entered a new upgrade cycle. Apple plans to launch the iPhone 17E, foldable iPhone, and AI glasses in 2026, with continuous upgrades to AI features. Apple's supply chain is expected to enter a three-year innovation cycle.
(2) Huawei's HarmonyOS Supply Chain: Huawei is a terminal brand manufacturer with full-stack R&D and innovation capabilities. In 2025, it continued to launch new products in the foldable device segment. HarmonyOS 6 supports various AI agents, significantly improving user experience. As the localization rate of upstream chips and components increases in the future, Huawei terminal sales are expected to grow continuously.
(3) AI Glasses Supply Chain: With the continuous rise in sales of AI glasses products led by Meta, domestic and foreign manufacturers are actively entering the market. AI glasses are expected to become the next terminal product with sales reaching tens of millions to hundreds of millions.
(4) OpenAI Terminal Hardware Supply Chain: OpenAI has made a high-profile entry into terminal hardware. From the perspective of an AI large model manufacturer, it has the potential to create a hit native AI hardware product.

Regarding components, focus on the upgrade trends in optics, batteries and fast charging, thermal management, structural components, and manufacturing processes.

(1) Optics: AI terminals support multi-modal interaction. Enhancing visual perception capabilities relies on stronger optical hardware modules. Both iPhone and Android camps continue to upgrade mobile phone optical performance. Honor innovatively proposed a mobile phone gimbal camera solution to support better AI visual interaction.
(2) Batteries and Fast Charging: The continuous performance improvement of AI terminals imposes higher demands on battery life. New technologies and forms such as steel shell batteries, silicon-doped anodes, stacked cell batteries, and solid-state batteries are being increasingly adopted. Mobile phone battery capacity and fast-charging power continue to increase.
(3) Thermal Management: The thermal management challenge for AI terminals intensifies. Apple is expected to gradually apply VC vapor chambers to more models and continue upgrades. The Android camp has begun adopting thermal solutions like micro-pump liquid cooling and micro fans.
(4) Structure & Manufacturing Processes: Display technology is continuously upgrading. Super hardness, scratch resistance, drop resistance, and anti-reflection are gradually becoming directions for cover glass upgrades. Slim designs and the increasing number of internal components are driving upgrades in body structure and manufacturing processes. 3D printing, MIM, and liquid metal processes are expected to penetrate more consumer electronics component manufacturing areas.

Regarding components, the synergy between AI computing power and AI terminals is expected to sustain an upward cycle for PCBs and passive components.

(1) AI Terminal Side: With SoC performance upgrades and increased internal integration of mobile phones, PCBs are developing towards higher-end, higher-density, and finer designs, while passive components are shrinking in size. Foldable screen devices use more FPC per unit. Apple's entry is expected to further expand the foldable smartphone market.
(2) AI Computing Power Side: The iteration of AI chips continuously increases the demand specifications and volume for PCBs, driving synchronous upgrades in upstream CCL and supporting materials. The rising power consumption of AI servers is promoting an upgrade in data center power supply architecture from traditional AC UPS to HVDC and SST directions. Power supplies within cabinets are developing towards higher power and density. This power architecture upgrade drives increases in both the usage volume and specifications of power devices and various passive components such as MLCCs, tantalum capacitors, chip inductors, and TLVR inductors.