The fifth generation of mobile communication (5G) infrastructure in mainland China has sped up the facilitation. In recent days, authorities in major cities have issued orders to ensure that construction will not be affected by the pandemic.      As a result of Taiwanese-funding the industry chain has received additional orders, from server PCB suppliers as well as from Copper Clad Laminate (CCL) factories and GEC, Tripod-Tech, ACCL, EMC, and Item will benefit from this.

 

               Given application developments, EMC pointed out that market conditions are better than before. It had received orders from the world's top-three server and switch ODMs as well as the top-three OEM customers for many new projects last year. Hence, it is expected that the market share of such high-end materials will increase largely this year.

 

                   Iteq indicated that the demand for 5G infrastructure construction from the mainland are strong in the second quarter, and operations remain high. Based on existing CCL materials of Iteq, they have already stretched over related fields of switches, servers, storage, and related fields of base stations. The demands should grow alongside with the progression of the 5G infrastructure.

 

               GEC, a communication and server board supplier, also said that it upholds cautious optimism for the second quarter. As a whole, the applications in Netcom and servers have accounted for nearly 70% in terms of terminal application structure for GCE over the years. With the accelerated build-up of 5G base stations in the mainland as well as quickened applications in Europe and America, GEC has actively worked to optimize its production constitution.

 

                   More than 16% of revenue is attributed to Tripod-Tech from servers and Netcom. The application momentum from Netcom, servers, and high-end laptops are expected to continue in the second quarter, with the proportion of servers and Netcom expected to increase even higher.

 

As pinpointed by ACCL, its production capacity should continue to remain fully loaded, and order visibility has increased as far as to eight to nine weeks given its focus placed on high-end orders for server and IPC applications.

 

        As mentioned by analysts, demands for PCB high-frequency materials in the mainland will grow relatively stable than other fields given 5G infrastructure in China this year, which has mainly come from the accelerated build-up of 5G infrastructure in the mainland. Among them, PCB cost for 5G base stations is estimated to increase from RMB 3,000 (about NT$12,800) to about RMB 10,000, mainly with the injection of high-frequency materials. On the other hand, high-end servers and communication applications in the global market have also been upgraded. AMD has actively enhanced its market share for server chips, coupled with the upgrade of Intel's 10nm server chip as well as that for PCIe Gen 4 so that they have driven the long-term demand for Low-Loss high-end PCBs and materials. (News source: Economic Daily News)