PCB Developmental Trends in Taiwan
Reports from industry news groups in Taiwan address the possibility of a capacity shortage for Taiwanese PCB manufacturers in the fourth quarter. These announcements are causing anxiety for anyone associated with the industry because business trends for Taiwanese PCB manufacturers are recognized as a worldwide barometer for the consumer electronics segment.
Shipments from Taiwanese manufacturers plummeted during the fourth quarter of 2008 by almost 75%. The financial crisis of September 2008, followed by the dreadful fourth quarter drop in business, caused everyone in the PCB industry in Taiwan to act quickly to keep the ship afloat. The rebound in sales was quick, and January 2009 showed signs of a recovery. Shipments continued to increase steadily during the second half of the first quarter. This spike in business was not from current product lines, but new gadgets that include netbooks and smart phones. These markets have exploded and created new business avenues for manufacturers. Taiwanese flexible circuit manufacturers are also busy from the portable electronics segment.
The growth rate slowed in the latter part of the second quarter, but the Taiwanese PCB industry is happy with a moderate growth rate during the third quarter. Market trends suggest a typical year where manufacturers receive an increase in orders in anticipation of a busy Christmas season. Operation managers are reporting that their manufacturing plants are operating at full capacity due to the influx of new orders.
Unfortunately, market indexes for August reveals more than a 20% decline in volume compared to the same month last year; only the larger industry leading manufacturers are seeing an increase in business. So, who is riding this wave? A few large manufacturers that are fortunate enough to have customers associated with netbooks and smart phones are the ones who have seen positive growth since August. The majority of Taiwanese PCB manufacturers have negative growth compared to last year. Business for mid-sized manufacturers declined 40 to 60% comparing August 2008 to August 2009, and there are no clear signs that things will bounce back in the near future.
Sales and marketing teams from leading PCB companies report brisk sales and large orders in their queue for the fourth quarter; however, they are unable to provide a clear business forecast for 2010. Much of their activity is tied to portable electronics sales. Taiwanese manufacturers are in the hiring mode, assuming a busy season, but management is pulling back the reigns and do not want to expand the workforce too much in fear of another decline in business
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