TAOYUAN, TAIWAN – 5G is driving the upgrade of copper clad laminate foil materials, says TPCA. As a result, CCL manufacturing plants such as EMC, Iteq, Tuc and Ventec are seeing successful revenues in January.

Major PCB manufacturers are striving for 5G-related construction orders. These plants are preparing to acquire CCL materials and have already placed orders.

EMC said requirements for halogen-free and environmentally friendly materials have become stricter under the requirements of product upgrades, since the EU has the highest demands for environmentally friendly materials, says TPCA. Overall, EMC is optimistic about market prospects.           

The 5G infrastructure is significantly greater in terms of CCL size, the number of layers, and the need for material upgrades compared to PCB factories, says the association. Unit price and amount of use in production have increased, regardless of the infrastructure design for Sub-6 or the mmWave specification. As for the quality of CCL materials, requirements are likely to become stricter, since the transmission of mmWave needs more antenna module designs, resulting in more requirements for the materials.

Tuc stated demands for server applications in the US are increasing, mainly for 5G-related applications. Iteq also says the demand for servers is favorable, regardless of whether the demand is from the brand or the data center. Moreover, it is possible the demands for base stations increase gradually with the completion of the subsequent terminal construction projects, while encouraging the market momentum.       

Ventec believes that, although the shipments in January are affected by the decrease in working days, performance does not currently appear to be too problematic, with follow-up momentum expected in the months to follow.      

Since the 2.5-71GHz frequency band for transmission is required for 5G, each base station must include approximately three to six AAUs (active antenna units), says TPCA. It is estimated the required PCB size is approximately 2.1 to 2.3 sq. m. So, the overall output value of PCBs and CCLs should approximately amount to $1,600. The output value has increased $300 compared to that of 4G applications. Overall, the output value of CCL materials has increased the most.          

High-frequency and high-speed CCLs are expected to account for 50% of PCB prices in the early stage of 5G, which is significantly higher than those in the initial and current stage of 4G estimated to reach its peak by 2022.

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