TAIWAN - PCB makers will look to increasing prices to pass on rising costs to their customers, according to industry reports.

Reports indicate that PCB makers including Hannstar Board and Gold Circuit Electronics (GCE) have already begun price negotiations with customers.

PCB makers are under increased pressure to increase costs due to rising materials and labor costs in China. Average selling price (ASP) for copper clad laminate (CCL), has grown 7% through the second quarter as well, according to industry reports.

CCL maker Iteq has explained in reports that there is typically a two-month gap between copper costs and affected CCL selling price, indicating that increases in copper costs will be seen as higher prices in PCB production several months later.

In addition to rising material costs, the dwindling number of motherboard PCB suppliers is another possible reason for a price adjustment, as low gross margins for motherboard PCBs have prompted many Taiwanese manufacturers to abandon production of the product, according to sources.