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PCB Makers Motivated by Market Margins |
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Written by Philip Buonpastore
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Wednesday, 21 May 2008 |
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TAIWAN ― Printed circuit board makers in the region are basing production on the profit margin of PCB products, according to reports.
Hannstar Board is the current leader in the low-cost notebook-use PCB market, while Gold Circuit Electronics (GCE) and Tripod Technology are apparently showing less interest, with GCE and Tripod focusing more on the high-end market, sources said.
Industry reports claim that Hannstar Board currently holds 70% to 80% of the low-cost PCB market share, with shipments expected to rise in the second half of the year. The company’s shipment of low-cost notebook PCBs was 12.3 million units in the first quarter, and is expected to grow to near 13.5 million units in Q2, with its 2008 goal at 54 million units.
GCE and Tripod are less interested in the low-cost notebook PCB segment, preferring instead to focus on higher profit applications.
GCE is currently running at 80% of capacity, and with 100% utilization expected in the third quarter. The company reportedly will not increase its production into the low-cost segment because of current orders for high-end application PCBs, which have better profit margins.
Tripod is also staying focused on high-end applications and reportedly has no plans to enter the low-cost notebook PCB segment, sources have stated. The company currently has a 15% margin, and moving into the low-cost segment would drive this figure down, according to reports. |
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