By the 11th of March, PCB manufacturing plants in Hubei will continue work operations while the utilization rate slowly increases
Date: 2020-03-17
News Type:
The largest hub of the PCB production center, Hubei, has finally recommenced work on the 11th of March. In addition to prior capacity deployment by various factories, analysts consider that the production capacity in the second quarter will improve with the full resumption of work. However, they warn that one would still have to pay attention to back-end assembly and the status of terminal demands.
A small PCB piece can connect the entire ICs, resistors, capacitors, etc., helping signals to flow through the electronic components efficiently. As such, PCB, considered as the mother of the electronics industry, has recently been impacted by current events and this has caused the production hub in Hubei to shut down. For after nearly an entire month, these factories have finally recommenced work operations.
To maintain the operation of supply chains, the State Council of China released a notice on the 3rd of March, demanding that the conditions for work continuation be relaxed while all manufacturers recruit new people to work in the factories. Excluding factories in Hubei, this area is the last to start work operations. Tripod-Tec is currently transferring orders from the Xiantao Plant to the Wuxi plant, which has as much as 80% of the work resumption rate. As for Compeq, it is still working on assigning the production capacity between Taiwan and China. In addition to the remaining employees that stayed in the factories during the Chinese New Year, its Chongqing plant has resumed 80% of work, Huizhou has resumed 70% of work, and Suzhou has resumed 50% of work. For the Kunshan plant of AEM, from the 15th of February, it has started to slowly resume its production capacity.
To eliminate the risks of excessive reliance, as well as single applications, analysts consider that PCB factories have, in recent years, actively been pursuing various channels to develop new product lines and even accelerate investments in south-bound Asian countries in advance or set up factories in Taiwan. The aim of these measures has been based on the objectives to acquire new business opportunities before their competitors. (News source: USTV News)
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