The new coronavirus pneumonia (NCP) pandemic has comprehensively disrupted the global economy. However, three major applications from 5G base stations, Netcom (switch high-speed computing), and game consoles have continued to grow, whereas PCB-related manufacturers are expected to enjoy benefits from urgent orders, including Unimicron, Tripod-tech, NanyaPCB, ACCL, Iteq, EMCTW, Ventech and other manufacturers.

 

        As for the demand for Netcom and high-speed applications, they should continue to increase, and it is estimated by the industry that the overall turnover of its PCB and upstream copper clad laminated foil (CCL) plants in the second quarter of this year will be significantly improved from that of the first quarter, with estimated output value to grow at least 30% to more than 50% on a quarterly basis. Meanwhile, the growth of the three major applications from non-Apple devices will also continue in the second half of the year.

 

          It was also mentioned by the industry that the impact of the pandemic on market demand from Europe, America, and mainland China is still awaiting to be evaluated. However, though the actual impact in the second half of the year is yet to be evaluated, the growth of applications from Netcom and servers has become relatively more visible. Besides, since the order demands for industrial PC (IPC) has increased, it has helped order visibility to be enhanced to about nine weeks.

 

 

        According to industry observations, the current global adoption of 5G applications is accelerating the adoption of halogen-free and environmental-friendly materials. Coupled with steady production yields of Taiwanese substrate manufacturers as well as HDI suppliers, and combined with overall market demand, major Taiwanese manufacturers are likely to gradually increase their rate of supply of base stations, among which are five global and benchmark telecom.

 

        Benefiting from the demand of 5G applications, Unimicron has forecasted that order visibility of substrates this year has already reached the third quarter. In addition, Nanya PCB plant, a substrate manufacturer, also noted that it will expand production on both sides of the Strait concurrently so as to cope with demand growth from customers.

 

        Tripod-tech emphasized that the proportion of Netcom products should continue to increase, but as the proportion of optoelectronic applications declines, the proportion of servers and Netcom, and DRAM/solid state drive (SSD) applications should grow more significantly. Also, Tripod-tech is quite optimistic, benefiting from the effect of urgent orders from customers, such that the utilization rate of production capacity in the second quarter can be maintained at more than 80%.

 

        For copper clad laminate foil (CCL) plants, it is well understood that the revenue from 5G-related applications of EMCTW has accounted for only single digits last year. Nonetheless, it is expected that the sales volume will gradually expand this year in view of the growth of halogen-free environmental-friendly application materials for base stations.

 

        Iteq is also optimistic as it believes the overall 5G demand should continue to increase, and it will persist to strengthen its core technical capabilities in terms of existing Netcom switches, servers, storage, and extend base station applications this year. (News source: Economic Daily News)