In Q1 of 2021, we observed the strong growth momentum of Korean substrates and FPBs, including SEMCO, LG Innotek, Kor Circ, and Interflex - all had an annual growth rate of double digits or more. On the whole, these Korean circuit board manufacturers were found to have more growth than decline in 2021 Q1. The overall growth rate was 18.2% and this momentum is expected to be maintained in the second half of the year.

 

In 2019, leading Korean manufacturers, Samsung and LG, announced the end of the poorly-profiting HDI business, and its refocusing on the development of substrates. This was a declaration that substrate was becoming a focus for Korean substrate manufacturers’ future development. Stimulated by 5G, IoT, and PC in 2020, the market has displayed strong demands for substrate. Because of this, it accounted for 40% of the market and was unique to the Korean market in particular. The market for rigid, soft, and rigid-flex board products shrunk to varying degrees and is predicted to continue in 2021. 

 

Even though Korean mobile-phone manufacturers have used Vietnam as their main mobile phone assembly production base, they would still need support from Korea regarding circuit boards, even though Korean circuit board manufacturers have themselves successfully established factories in Vietnam for needed circuit boards. Because of this, Vietnam has already become the largest country of export for Korean circuit boards, accounting for 32% of its total value. 

 

China, Japan, and Taiwan are the three major import regions of circuit boards from South Korea. It is worth noting that if we look at the import value in the past three years, Taiwan’s import value has increased year by year among these three major regions.