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The cross-strait expansion of PCB production in 2020

 

發佈日期:2019-11-20

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Resulting from their optimism about market development, both Apple and non-Apple PCB groups will expand their production in 2020. Unimicron Technology Corp. and Zhen Ding Technology Holding Ltd (ZDT) are taking the lead in determining mid to high-end PCB expansion plans while Unitech Printed Circuit Board Corp. and Compeq Manufacturing Co., Ltd has also decided to expand their production in mid to high-end PCBs in 2020, successively. At the same time, PCBA, SMT manufacturer, and Taiwan Surface Mounting Technology Corp. (TSMT) also plans to increase their production capacity in Taiwan and mainland China to meet the market demands. Non-Apple PCB suppliers have optimistic prospects for the market and are also expanding their production lines.

 

  TSMT mentioned that their 2020 production capacity increment would mainly take place in Taiwan and mainland China, while the current eight production lines will remain in India. The company is also determined to expand its production scale at its Guishan plant in Taiwan, but the specific expansion extent at the mainland plant has not been decided yet.

 

  Among the PCB groups, Unimicron has been the first to announce a new high capital expenditure for 2020, estimated at NT$17.18 billion. This is mainly driven by several high-level capacity investment and construction plans, expanding both the production capacities of high-end IC carrier boards at the company’s plants in Taiwan and mainland China.

 

  ZDT previously predicted that it’s capital expenditure in 2020 would be higher than in 2019, mainly investing in advanced processes. It’s capital expenditure in 2018 was NT$12.6 billion, which was the highest expenditure over the past years. This year, the capital expenditure is slightly lower than in 2018, but capital expenditure is expected to be higher in 2020 as compared to 2019.

 

  ZDT also plans to expand its production capacity and launch new capacity in 2020, including the assembly of PCBA in India in the first half of next year and the second-phase expansion of its new plant in Shenzhen. The factories at Huai’an and Qinhuangdao are scheduled to achieve new production capacities in the second half of next year and some sections of the factories have already implemented lights-out production. Currently, ZDT is the only company among Taiwan-invested PCB manufacturers in China to profit from substrate-like PCBs (SLP).

 

  Unitech and Compeq similarly have corresponding plans for mid to high-end production capacity investments. Unitech has stated (22) that the direction of 2020’s new production capacity would initially focus on rigid-flex boards and that the company would continue to explore niche applications.

 

  Compeq plans to build the second construction project at its Chongqing plant, with a first-stage investment amount of approximately NT$5 billion. The production capacity is expected to be achieved as soon as 2021, with a new monthly production capacity of 100,000 to 150,000 square feet. All production is aimed at high-end HDI boards, including part of the SLP process and the plant will expand in several stages according to the relevant market demands.

 

  Plotech Technology Co., Ltd, a supplier of Xiaomi’s concept stock and non-Apple PCBs, also plans to invest US$60 million (approximately NT$1.832 billion) to set up a new plant in Nantong. The company stated that the construction of the new green energy and smart automation factory is crucial in taking advantage of the company’s existing resources, reducing operating costs, and enhancing core competitiveness, thereby meeting the needs of current and future market development. The preliminary construction of the plant is estimated to take place within two to three years. (News source: Economic Daily News)

 

 

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