PCB makers show more interest in IC substrates

CHINA:  Severe competition and thinning profit margins are driving makers to seek new avenues to generate revenue growth, according to a new report, "Advanced PCB (Printed Circuit Boards) Industry Report, 2007" by market research firm Research in China. These makers are focusing on IC substrates, high-end applications, and providing EMS.

Albeit a capital-intensive investment, IC substrates cover the semiconductor packaging industry and the PCB industry, offering large profits. Top PCB manufacturers worldwide, including IBIDEN, Shinko Electric, and Taiwan-based Nanya PCB and World Wiser Electronics, are already showing great interest in this sector,

According to the report, the second targeted revenue generators are high-end applications, including mobile phones, photoelectric boards, notebook PCs, and memory modules. Taiwan is claimed to be the largest supplier of mobile phone boards, accounting for 65 percent of the global output.

Meanwhile, Tripod Electronic and Wus Printed Circuit Co. Ltd are the two giants in the photoelectric field, which needs expensive of horizontal electroplating equipment and requires interlayer registration accuracy. Dynamic Electronics and Taiwan PCB TechVest Co. Ltd are regarded as the rising stars in this sector, according to the report. 

 Gold Circuit Electronics have also made progress; in particular, Yang An recently made a breakthrough in vertical electroplating technology. In the notebook computer PCB segment, over 60 percent of the market share goes to HannStar Board Corp. Gold Circuit Electronics, Wah Toon, Tripod Electronic, Vertex Precision Electronics and Cadac Electronic, on the other hand, are also gearing up to gain more market presence in this segment.

The memory module market requires specialized equipment. Tripod Electronic, SIMMTECH, Dade Motor, South Korea Circuit and Copam Electronics are among the leading

companies in the sector. South Korea, which leads the memory market, is also a major memory module PCB base.

The third direction is to become EMS manufacturers, said the report. The crucial strategy for PCB manufacturers and EMS manufacturers is cost control. Apart from manufacturing LCD TV, DVD player, and PDP TV circuit boards, these manufacturers are now doing the assembly of these products. Ya Hsin and Meiko Electronics are now also providing EMS. Viasystems, the largest PCB manufacturer in North America, is also an EMS provider.

Other findings of the report include:

-          40 percent of the world's PCB is produced in mainland China and Taiwan.

-          In mainland China, the more than 1,200 PCB companies are engaged in single-sided PCBs and multilayer PCBs, targeting low-end applications and downstream products,

including PC motherboards and low-end consumer electronics.

-          Only a few PCB enterprises serving military and aerospace survive in North America.

-          In Europe, the PCB industry has been gradually shrinking due to the strict demand in environmental protection and weak competitive ability caused by workers' unwillingness towards overtime. In the future, Europe's PCB manufacturing is expected to close down, or be transferred to mainland China.