TPCA: Taiwanese PCB companies are recovering, with Q2 output expected to rise by 7.3%.
United News Network
June 4, 2024
Author Economic Daily reporter Yin Huizhong
June 4, 2024
Author Economic Daily reporter Yin Huizhong
The Taiwan Circuit Board Association (TPCA) issued a press release on the 4th, mentioning that Taiwanese PCBs have come out of the trough and are growing quarter by quarter. It is estimated that the performance of PCB output in the second quarter of this year will be better than that in the first quarter. The global output value of Taiwanese circuit boards in the second quarter is expected to be It is estimated to reach US$6.018 billion, an increase of 5.1% from the first quarter, and an annual growth rate of 9.2%. If calculated in New Taiwan dollars, it is 194.7 billion, and the quarterly and annual growth rates are 7.3% and 15.0% respectively.
The agency analyzed that the global and Taiwanese circuit board markets experienced a rare recession in 2023. Although it did not return to positive growth significantly in the first quarter of 2024, it was still better than expected, and the demand for AI hardware and low-orbit satellites continued to ferment. The overall market is showing a slowly upward trend despite the continued increase in unfavorable environmental factors. In the first quarter of 2024, the global output value of Taiwanese circuit boards was US$5.725 billion, a slight decrease of 4.3% from the same period last year. However, benefiting from the appreciation of the US dollar, it was 181.4 billion yuan in Taiwan dollars, a decrease of only 0.2% compared with the same period last year.
Although the global circuit board output value of Taiwanese companies has shown double-digit decline for five consecutive quarters, global demand has no longer dropped significantly, reflecting that the recession is coming to an end, and it is expected that a gradual recovery will be the main trend in the future. This is because at the end of a recession or the beginning of recovery, consumer and business spending is still conservative, and sales are mostly reflected in specific products. For example, AI servers have better growth momentum than general-purpose servers, and affordable smartphones are better than high-priced models. . In other words, PCB manufacturers also feel completely different temperatures due to differences in the product markets they enter.
Looking forward to the second quarter of 2024, the agency analyzed that although it is the traditional off-season, as many economic indicators have turned for the better, the mentality of businesses and consumers has turned neutral to optimistic, and purchases and expenditures will be more active, which is expected to drive mobile phones and computers. Sales of personal consumer goods and personal consumer goods have rebounded. In addition, the impact of AI on products has begun to emerge in the first quarter, and the demand for related products has increased quarter by quarter. The display electronics industry will not be slow in the off-season, so PCB performance is expected to be better than that in the first quarter. The global output value of Taiwanese circuit boards in the second quarter is estimated to reach US$6.018 billion, an increase of 5.1% from the first quarter, and an annual growth rate of 9.2%. . If calculated in New Taiwan dollars, it is 194.7 billion, and the quarterly and annual growth rates are 7.3% and 15.0% respectively.
The agency analyzed that the scale of the Taiwanese PCB application market in the first quarter was communications (34.7%), computers (20.9%), semiconductors (13.5%), automobiles (13.5%), consumer electronics (12.1%), and Others (5.3%). Except for semiconductors, all other applications increased compared with the same period last year. In communication applications, although high-end mobile phone sales were poor, overall mobile phone sales still grew slightly. Supported by low-orbit satellites and China Netcom infrastructure, YoY grew by 1.8%. In terms of IC carrier boards for semiconductor applications, after four quarters of shrinkage, BT carrier boards have seen a slight recovery in consumer products. Although the overall recovery speed of ABF carrier boards is slower, it has benefited from the high demand derived from AI. High-end computing chips performed well, and the overall YoY decline in the first quarter has narrowed to 13.2%. The computer category grew by 2.6% year-on-year due to the recovery of business laptops and the construction of AI servers. Due to the growth of electronics in automobiles, smart cockpits and ADAS systems are the main drivers, and the annual output value growth rate is 2.9%. Consumer applications have initially recovered due to terminal inventory replenishment, with output value growing by 1.5% annually.
The agency analyzed that the proportion of Taiwanese PCB products in the first quarter was multilayer boards with more than 4 layers (33.8%), flexible boards (23.9%), HDI boards (20.1%), IC carrier boards (13.5%), and others. (8.7%). The application of flexible boards in automobiles is growing, but due to the lack of improvement in sales of high-end smartphones, the overall output value declined by 3.3%. HDI grew 7.4%, driven by demand for low-orbit satellites, AI servers, high-end laptops and automotive electronics. The growth rate of multi-layer boards turned positive to 2.5% due to terminal inventory replenishment and an increase in the proportion of high-end products.
Looking forward to the second half of 2024, the agency analyzed that if there are no major unexpected negative factors in the world, the electronics industry will continue to recover. With the arrival of the peak season and the growth of AI Edge (such as AI PC or AI mobile phone), Taiwanese circuit boards The output value is expected to increase quarter by quarter. The full-year output value in US dollars and New Taiwan dollars is estimated to be US$25.933 billion and NT$824.5 billion respectively, with annual growth rates of 5.2% and 7.1% respectively, and is back on the track of positive growth.
Related links: https://udn.com/news/story/7240/8009443
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