U.S. Confronts The Hidden Risk Of Chinese Circuit Boards Fundamental To AI Chips

CNBC (main)
CNBC (main)Jun 3, 2026

Why It Matters

Domestic PCB production is essential to safeguard AI and defense hardware from supply‑chain vulnerabilities and foreign sabotage, while unlocking a strategic growth market for U.S. manufacturers.

Key Takeaways

  • U.S. PCB share fell from 30% to 4% since 2000.
  • AI and defense demand drive PCB prices up 40% recently.
  • TTM expanding U.S. capacity with new plants in New York and Wisconsin.
  • Senate bill proposes 25% tax credit and $3 bn grants for domestic PCBs.
  • Security risks arise from Chinese-made boards in weapons and AI systems.

Summary

The video examines how the United States depends on Chinese‑made printed circuit boards (PCBs) for everything from iPhones to Nvidia AI servers, and why that reliance is now a national‑security concern as AI and defense demand explode.

U.S. PCB production has collapsed from 30 % of global output in 2000 to roughly 4 % today, while AI‑driven data‑center and military needs have pushed prices up 40 % in a single month. Companies such as TTM report 5‑25 % price hikes and a surge in orders from Nvidia, Google, Apple and the Department of Defense.

Officials like Defense Department analyst Mike Kadanazi warn that a malicious component on a Chinese board could disable weapons, and TTM’s CEO highlighted new U.S. factories in Syracuse and Wisconsin. Congress is responding with the Protecting Circuit Boards and Substrates Act, offering a 25 % tax credit and $3 bn in grants.

Scaling domestic PCB capacity will reduce supply‑chain risk, protect critical AI and defense systems, and create a new growth sector, but it requires massive private investment and sustained government support.

Original Description

Printed circuit boards sit underneath nearly every chip, a quiet but crucial piece of the booming AI market. But they’re also a growing problem for the U.S., because nearly all AI circuit boards, for Nvidia, Google, Apple and others, are made in China. This creates supply chain vulnerabilities and opportunities for adversaries to sneak through malicious components. Amid ongoing wars in Iran and Ukraine, PCB demand and prices have never been higher. But national security risks mean the military can only source PCBs from the dwindling number of domestic factories. Now, new legislation would incentivize building and buying American-made circuit boards. CNBC visited TTM, the largest U.S. circuit board maker, to see how PCBs are made and find out how the U.S. is trying to catch up with China.
Chapters:
0:00 Introduction
3:09 Not just ‘dumb plastic’
7:29 Why security matters
10:24 How China got ahead
12:41 Can the U.S. regain ground?
Produced and Reported by: Katie Tarasov
Edited by: Marisa Forziati
Additional Editing: Erin Black
Camera by: Andrew Evers, Devan Burris
Senior Director of Video: Jeniece Pettitt
Animation: Jason Reginato, Emily Park, Christina Locopo, Alisa Stern
Additional Footage: Alisa Stern, Getty Images, Itera, Intel, Nvidia, PCBAA, Quilter, Sanmina, TTM, TSMC
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U.S. Confronts The Hidden Risk Of Chinese Circuit Boards Fundamental To AI Chips

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