FUKUSHIMA, JAPAN – As a result of a recent fire at a Nittobo plant here, the supply of ABF substrates worldwide is expected to fall short, according to reports.

ABF substrates makers now expect tight supply of glass fabrics for at least the next six months, which will drive up prices. The global ABF substrate supply reportedly will fall short of demand by at least 20% by the end of 2020.

However, Unimicron Technology, Nan Ya PCB and Kinsus Interconnect have not received messages about supply reduction from Nittobo yet, say reports.

The Nittobo plant produces fiberglass fabrics for PCB applications. The company says some production equipment was flooded as the fire was put out. The firm hasn’t determined whether its consolidated revenues will be affected.

In the meantime, Unimicron and Nan Ya are expanding monthly capacity to 40 million and 28.6 million units, respectively, while Kinsus is planning to boost capacity from the current 12 million units.

Taiwan's CCL makers, including Taiwan Union Technology, Elite Material and Iteq, may also face higher production costs as part of the low-Dk fiberglass fabrics they need to produce CCLs. These CCL makers have begun shipments to Shennan Circuits, Wus Printed Circuit and Shengyi Technology.

TUC has the highest reliance on Nittobo for the supply of low-Dk fiberglass fabrics, with Iteq second. EMC sources materials from other Japanese suppliers, so the company may see less of an impact from the fire.

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