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Compaq suspends its expansion project and focuses on producing PCBs in Taiwan for the US market

 

Date: 2018-11-29

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The production capacity increment at the Chongqing plant in 2017 has helped Apple’s concept stock Compaq to achieve substantial growth in performance, but due to conservative market demand this year and next, Compaq’s strategy is to temporarily suspend its expansion plan. Amid the ongoing US-China trade war, the company pointed out that viewing the actual market situation is still necessary before making any decisions.
 

In response to the US-China trade war strategy, the primary customers for Compaq’s PCBs are the relevant EMS assembly plants based in mainland China. Therefore, the company does not have the problem of high tariffs selling to the US. It will produce PCBs in Taiwan for the US market.
 

The substrate-like PCB (SLP) technology that Compaq started to produce last year is in line with the mainstream trend of current PCB designs and features a fine pitch. Despite a high threshold for new technology, Compaq has accumulated rich experience in manufacturing high-level HDI in fine line structure and SLPs. In addition to US customers, other clients are also beginning to use the SLP designs in mobile phones, including Compaq and Zhen Ding Tech. All of them are using SLP technology to win orders for the non-Apple market. (News source: cnYES)

 

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