The production value of Taiwan’s printed circuit board (PCB) makers is expected to expand about 18 percent year-on-year this year to exceed NT$800 billion (US$28.78 billion) for the first time, thanks to robust demand for substrates used in iPhones and vehicles, the Taiwan Printed Circuit Association (台灣電路板協會) said yesterday.
For the whole of this year, the production value would climb to NT$821.1 billion, compared with NT$696.3 billion last year, as resilient demand for smartphones, notebook computers and vehicles is expected to continue driving PCB demand through the end of the year, the association said in a statement.
The association’s outlook is based on the sector’s encouraging performance last quarter.
Local PCB makers posted a cumulative production value increase of 19 percent year-on-year to NT$221.4 billion, making it the best third quarter on record, an association tally showed.
Most types of PCBs registered an annual growth, with advanced ABF substrates — primarily used in CPUs and other processors — posting the fastest growth amid higher average selling prices, and despite supply constraints, the association said.
Demand for BT substrates also increased following the launch of a new line of iPhones, it said.
The production value of chip substrates soared 41.8 percent year-on-year, the strongest among all PCB substrates, setting a quarterly record, the association said.
Robust demand for high-end substrates used in 5G devices such as iPhones and high-performance-computing technology fueled demand, it added.
Strong demand also boosted prices, it said.
The introduction of new iPhones also helped the production value of flexible substrates grow 20.8 percent annually, the association said.
The production value of multilayer boards also jumped 21.8 percent, driven by seasonal demand for electronics amid a work-from-home trend, it said.
The production value of interconnectors, which are mostly used in computers and consumer electronics, rose 14.1 percent annually, the association said.
As most Taiwanese PCB makers are suppliers to Apple Inc’s, their business grew in line with iPhone shipments, which helped them avoid the effects of slumping third-quarter shipments of smartphones of other brands, including Samsung Electronics Co, it said.
Automakers are increasingly adding electronic components to their products, such as displays, radars and antennas, demand for PCBs also rose from that sector, the associations said, without providing growth figures.
As local PCB makers have continued developing high-end products and investing in capacity expansions, the production value of locally made PCBs grew more than 20 percent in each quarter of this year, outpacing growth in the sector in China, the association said, adding that this has never occurred before.
About 34.5 percent of Taiwanese firms’ PCB production value came from domestic production, while production in China contributed 63.2 percent, the tally showed.
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