TAOYUAN CITY, TAIWAN – First quarter cross-strait Taiwanese PCB output totaled NT$209 billion (US$7.02 billion), up 20.6% year-over-year and a new quarterly high, says Taiwan Printed Circuit Association.
Taiwanese PCB manufacturers maintain about 63% of production in Mainland China. As the macro-environment keeps changing, second quarter output is projected at NT$209.2 billion, growth of 14.8% compared to the same quarter last year.
Taiwanese PCB manufacturers will experience annual growth in all PCB products, particularly IC substrates up to 39.9%, revenues boosted by fully booked capacity and product price increases as a result of the ongoing under-supply of substrates, according to TPCA.
Growth of up to 20% is also expected in HDI products due to rigid demand in end-user products. First quarter flexible printed circuits grew 17.9% as a result of increasing demand from smartphones, laptops, consumer electronics and automotive applications. Although rigid-flex PCB sales dropped when consumption declined after an advanced TWS design change, an increase of 12.3% was noted in the first quarter following hot sales of low-price AirPods and sales increases in various end-user products.
In 2022, 5G digital dividends and EV penetration are expected to put global economic development back on track, as the Covid-19 curve flattens, says TPCA.
When Mainland China imposed maximum crowd and materials control under the “dynamic zero-Covid” policy early in the second quarter, the electronics industry either lowered or suspended capacity utilization, leading to another global undersupply of electronic components. Alongside the interest hike for suppressing inflation that has brought negative influence on the global economy and the faith of consumers, TPCA is afraid the stock of end-user products will be raised by the downfall of buying power. Despite the support of current chip shortages, the demand of end consumers is expected to turn conservative. Even though the trend of developing products of high value continues, the suppression effect on the PCB output value in the second quarter persists.
Although the geopolitical effects of the Russo-Ukrainian War, materials shortages and high inflation are impacting Taiwan’s PCB industry this year, the strong chain effect of the US dollar is expected to bring good news to NT dollar revenues.
Ed.: NT$1 = US$0.034