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ITEQ thrives after acquiring 5G business opportunities

 

Date: 2019-09-17

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    PCB manufacturers rush to build 5G infrastructure applications due to the 5G business’ market optimism while encouraging ITEQ, the upstream copper-clad laminate (CCL) manufacturer, to thrive. PCB and carrier board manufacturers additionally anticipate strong demand for smartphones in 2020. 

 

    The 5G-related infrastructure construction stage in Mainland China is considered to mainly rely on China-based PCB manufacturers to provide the relevant PCBs. When answering the investors’ questions, WUS Printed Circuit (Kunshan) Co., Ltd, the reinvested company of WUS Printed Circuit Co., Ltd, emphasized that they are actively cooperating with terminal 5G applications. The company has made small-batch shipments of 5G PCBs while using raw materials that are explicitly determined by the needs of the customers. 

 

    Meanwhile, the upstream material suppliers are also actively cooperating with the China-based PCB manufacturers that have paved the ways into 5G Netcom and base station construction supply opportunities. Market participants said that they mainly use CCLs from SYTECH, Zhejiang Wazam New Materials, Nan Ya CCL, ITEQ, and other companies. Overall, high frequency and high-speed CCLs accounted for about 50% of the PCB price during the early 5G construction stages, which is an area that has been showing significant growth.

 

    Moreover, the latest market statistics released by TPCA (Taiwan Circuit Board Association) showed that the production values of three categories, including BT carrier PCBs, flexible PCBs, and HDI (High-Density Interconnect) PCBs, in the cross-strait Taiwanese PCB manufacturers have declined in the first half of 2019 over the same period as last year as a result of the shipment declines in mobile phones and auto electronics.

 

    TPCA also said that in the first half of 2019, although the Sino-US trade war situation was unclear and the global smartphone and auto markets continued to be slow-moving, the downstream customers are stocking up on raw materials as they are worried about the worsening of the Sino-US trade war. Outstanding PCB products, such as ABF carrier boards and rigid-flex PCBs, have shown high sales growth. The increased PC shipments have driven the demand for traditional rigid PCBs while increasing the growth rate of rigid-flex PCBs by up to 47.1%. This has consequently allowed the sales of the cross-strait Taiwanese PCB industry to maintain the same level in the first half of 2019 over the same period of last year.

 

    While looking forward to the second half of 2019, TPCA stated that the psychological expectations for the launching of 5G products would result in the delay of consumers changing their mobile phones. The wave of this generational product exchange period, however, will be much longer than expected. (News source: Economic Daily News)

 

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