TAOYUAN CITY, TAIWAN – Taiwanese companies across the strait had PCB output of NT$817.8 billion (US$28.8 billion) in 2021, up 17.5% year-over-year, according to the Taiwan Printed Circuit Association, a record high. In US dollars, output grew 24.1% due to fluctuations in the exchange rate. In New Taiwan dollars, this is the first double-digit growth since 2010.

Manufacturers of substrates have expanded their production capacity, while the penetration rate of 5G cellphones and EVs continues to rise, promoting the recovery of the overall economy. TPCA expects Taiwanese companies' combined domestic and foreign output will increase 6.5% this year to reach another record high.

In 2021, Taiwanese companies’ PCB production in Mainland China accounted for approximately 63.4%, remaining nearly flat. Many factors, such as recent geopolitics, the global pandemic, China’s power rationing, and the IC shortage, have prompted Taiwanese companies to employ different deployment strategies for domestic and overseas investment; regional production is emerging, says TPCA.

Except for rigid-flex boards, whose performance is constrained due to product applications, PCB products were prosperous in 2021, especially IC substrates, followed by multilayer boards, flex boards, HDI, and single-sided and double-sided boards. IC substrates benefit from demand for high-computing ICs, while high-speed memory drives the need for advanced processes.

There was great demand for ABF substrates and BT substrates throughout the year, with an annual growth rate of 33.1%. Multilayer boards benefitted from the work-from-home economy and strong demand for servers, with an annual growth rate of 21.6%. Flex boards for cellphones, laptops, tablets, and automobile electronics had an annual growth rate of 18.2%. In addition, HDI and single-sided and double-sided boards had growth rates of 13.5% and 8.1%, respectively.

Looking toward 2022, there will be great demand for 5G products and EVs. While the global pandemic is not over yet, it is expected the global economy will keep on track. Additionally, Taiwanese IC substrate companies will expand their production capacity.

However, global inflation, geopolitical conflicts, material shortages, slowing demand for laptops and tablets, and a global net-zero trend may impact the PCB industry.

Ed.: NT$1 = US$0.035

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