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Study Reveals State of RoHS-Compliance in China |
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Written by Tracy Heffner
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Tuesday, 05 December 2006 |
HONG KONG – Thirty-four percent of flexible PCB manufacturers in Greater China have not yet started to produce RoHS-compliant products, according to Global Sources' "China Sourcing Report: Flexible PCBs."
"Most Greater China manufacturers have updated facilities to phase out lead soldering materials," said Mark Saunderson, publisher of the report. "However, many smaller manufacturers are finding the necessary equipment upgrades to be cost-prohibitive."
Despite rising raw material costs and the cost of RoHS compliance, Greater China manufacturers are expected to increase production by 15% annually through 2008, the report stated.
"This is nearly double the expected 8% annual growth rate for PCB makers worldwide," said Saunderson. "Strong demand is being driven by Asia's booming consumer electronics sector, with flexible PCBs used in products ranging from LCD TVs and digital cameras to cellular phones and other consumer electronics."
Manufacturers plan to absorb the costs of RoHS compliance in the short term in order to remain competitive. Among surveyed mainland China and Hong Kong manufacturers, 59% project no price change during Q4 2006 and 24% expect to increase prices by 10%. Of Taiwan's flexible PCB manufacturers, 56% project no price change for Q4 2006 and 33% expect to increase prices by 10%.
The report shows that manufacturers expect price hikes in Q1 2007 due to the increasing costs of raw materials.
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