"Technology" Taiwanese factories are gradually opening up production capacity, and Thailand's PCB industry chain is taking shape (2-1)
Times information
July 3, 2024
Author: Times reporter Zhang Hanqi/Taipei report
July 3, 2024
Author: Times reporter Zhang Hanqi/Taipei report
In order to balance geopolitical risks, PCB factories are actively moving forward to set up factories in Thailand. With the new production capacity of each factory, Thailand's PCB industry chain has officially taken shape.
The global PCB industry has undergone several waves of transfer. Since the mainland promoted reform and opening up in the 1990s and joined the WTO in 2001, the two waves of transformation have attracted the entry of the global manufacturing and PCB board industries. However, with the increase in labor costs in the mainland and the rise of the red supply chain, since 2010, Japanese and Korean circuit board factories have gradually reduced their proportion in the mainland and expanded investment in Southeast Asia. The production layout has been quite dispersed, but Taiwan PCB boards About 62% of the industry's output value is still in the mainland, and mainland-owned board factories are almost all concentrated in the mainland. Therefore, with the increasing scale of Taiwan-owned and mainland-owned board factories, the mainland has more than half of the world's PCB manufacturing capacity.
Amid geopolitical tensions such as the confrontation between China and the United States and the Russia-Ukraine war, major international brand manufacturers are promoting the adjustment of the electronics industry supply chain to "China+1" to disperse the risks of over-concentration of production and manufacturing in the mainland and trade uncertainty. In addition, some manufacturers are Strive for new orders or diversify capital for global layout, and accelerate cross-strait PCB supply chain investment in Southeast Asia. Among them, Thailand is the most favored by PCB factories, including the world’s number one PCB factory Zhending-KY (4958), Jinxiang Electronics (2368), Huatong (2313) and flexible copper foil substrate materials factory Taihong (8039) have invested and set up factories in Thailand.
According to TPCA data, in the past, Thailand’s PCB industry was mainly dominated by Japanese companies and Thai business KCE. The only Taiwan-owned PCB companies were Taiding-KY (4927), Jingpeng (2355) and Jingguo (6108). It is mainly used in automotive and computer peripheral related fields, with an overall output value of approximately US$3 billion. With the large-scale entry of Taiwanese and mainland manufacturers, TPCA expects that Thailand’s PCB landscape will face major changes. Although new investment manufacturers are still based on multi-layer boards and HDI Products are the main focus, but the application scope is no longer limited to the automotive field, but will also expand to servers and different application fields.
From the perspective of the upstream supply chain, although a few key materials and manufacturers have set up production bases in Thailand, the overall proportion is still low. With the entry of more board factories, it is expected that in 2026, Thailand's PCB output value will account for 20% of the global market share. The proportion is expected to exceed 5%, which will lead to an increase in overall economic benefits and will have a more significant impact on the supply chain.
【Disclaimer】
The content of this article only represents the author's personal views and has nothing to do with Creating.
The content, textual description and originality have not been confirmed by this website. This website does not make any guarantee or commitment for this article and all or part of its content, authenticity, completeness and timeliness. It is for readers' reference only. Please verify the relevant content by yourself.
Creating Nano Technologies, Inc.
59 Alley 21 Lane 279, Chung Cheng Road, Yung Kang City, Tainan, TAIWAN
TEL:886-6-2323927 FAX:886-6-2013306 URL: http://www.creating-nanotech.com