Combined output value of PCBs from mainland China and Taiwan climbed 22.52 percent in 2004 to US$14.8 billion from US$12.08 billion in 2003. Mainland China accounted for US$7.2 billion and Taiwan, US$7.6 billion. A total of 219.97 million square meters of PCBs were produced in mainland China and Taiwan in 2004.
Mainland China has over 700 PCB makers, mostly in Dongguan, Shenzhen, Kunshan and Suzhou, where many electronics makers have set up production bases. About 30 percent of the makers are foreign-owned or foreign-invested.
At present, there are some 200 PCB makers in Taiwan, located mostly in Taoyuan. Only about 80 companies have the capability to offer full process PCB production. Over 70 percent of Taiwan PCB makers have shifted mass production to mainland China.
Highlights of the findings regarding mainland China's PCB industry include:
• In 2004, its PCB output increased by 32.34 percent from 2003, manufacturing at least 84.7 million square meters of PCBs. The overall output of PCBs in mainland China is expected to reach 110 million square meters in 2005.
• It is the largest producer of PCBs in terms of volume. PCB production value of mainland China, including the output level of Taiwan makers with manufacturing facilities in mainland China, is the world's second largest behind Japan's.
• Mainland China's rigid-PCB output totaled 75 million square meters in 2004, increasing by 30 percent from 2003. In 2005, mainland China rigid-PCB output is forecast to reach 98 million square meters.
The main findings in regard to Taiwan's PCB industry are:
• Taiwan is estimated to supply about 20 percent of the world's PCBs.
• Multilayer PCBs represent the largest portion of Taiwan's PCB industry. In 2003, multilayer PCBs contributed more than 60 percent of the industry's total production value.
• Nearly 40 percent of Taiwan's PCBs are applied in IT products, especially four-layer PCBs for computer motherboards. Another major application segment is telecommunications equipment. Taiwan companies are working toward expanding into medical and military-application segments to avoid competition with mainland China PCB makers.
• Some 14 percent of the global PCB supply is shipped from Taiwan ports. About 60 Taiwan PCB manufacturers are exporters. From US$3.76 billion in 2004, exports of Taiwan-made PCBs are forecast to grow by nearly 8 percent, reaching US$4.06 billion in 2005.
Industry Overview
A combined 219.97 million square meters of PCBs were produced in mainland China and Taiwan in 2004.
The total production value in 2004 was estimated at US$14.8 billion, according to statistics from the China Printed Circuit Association and the Taiwan Printed Circuit Board Association.
Rebounding from the slump in previous years, PCB industries in mainland China and Taiwan grew some 30 percent and 14 percent, respectively, from 2003 to 2004.
In 2003, mainland China and Taiwan's aggregate production value was US$12.5 billion. The global production value of PCBs increased 9.18 percent to US$34.5 billion in 2003, from US$31.6 billion in 2002.
In terms of production value, the combined figure from mainland China and Taiwan companies with factories in mainland China is the world's second largest. Japan is still the biggest supplier of PCBs.
Industry Composition
Industry-wide, the number of PCB makers in mainland China and Taiwan exceeded 800 in 2004, increasing by some 8 percent from 2003. With the rise in demand for PCBs, the number is expected to increase by at least 20 percent in 2005.
As for PCB manufacturers included in this survey, an estimated 79 are mainland China companies; about 19 are Taiwan companies; and about 6 are Hong Kong companies.
Mainland China has over 700 PCB makers, more than 200 of which are foreign-owned or joint ventures. Nearly 80 percent of companies, or more than 500, have export capabilities.
According to the China Printed Circuit Association, about 40 percent of these makers have annual sales below US$0.6 million. Almost 50 percent have revenues of between US$0.6 million and US$6 million. Some 8 percent of these companies have between US$6 million and US$60 million in sales. Only about 2 percent have sales exceeding US$60 million.
In Taiwan, overall PCB sales revenue was estimated at US$7.6 billion in 2004. Taiwan's top 10 PCB companies account for some US$3 billion, or about 40 percent of the total. Unimicron Technology Corp., Compeq Mfg Co. Ltd and Nanya Technology Corp. are three of the biggest PCB makers, with sales of US$621.5 million, US$471.4 million and US$462.52 million, respectively.
In this report, 67 percent of the makers are mainland China companies, 20 percent are Taiwan companies and 13 percent are Hong Kong companies.
Supplier Profile
AKM Electronics Industrial (Panyu) Ltd
Established in 1994, AKM Electronics Industrial (Panyu) Ltd is a Hong Kong-owned enterprise based in Panyu in Guangzhou. The chairman unit, AKM Industrial (Hong Kong) Ltd, was publicly listed on the Hong Kong Stock Exchange in 2004. With an investment of US$10 million, the company began mass producing flexible PCBs (FPCs) in 1996. In 2002, AKM was named a Guangzhou high-tech enterprise by Guangzhou's Bureau of Science and Technology. The company produces single-sided, double-sided, six-layer, rigid-flex, controlled impedance and silver-paste screen print FPCs. Multilayer and double-sided FPCs take up about 70 percent of production. AKM also offers SMT and flex circuit assembly services.
These FPCs are widely used in mobile phones, notebook PCs, portable A/V devices, digital cameras and PDAs, with mobile phones accounting for 80 percent of applications. The company has established sales partnerships with many mobile phone makers in mainland China, including TCL, Bird and Philips. It is also planning to explore other application segments such as cameras and laptop computers.
Exports currently represent only 10 percent of its output but plans to strengthen its overseas presence over the next few years. AKM will initially focus on Taiwan, Japan, Singapore and South Korea, and eventually the US and Europe.
Manufacturing Capability
Global Sources visited AKM's production base in Panyu, which has an area of 13,000 square meters and employs 1,300 workers.
In addition to the increase in workforce, the company has also spent US$8 million on new equipment in 2004.
Currently, it has six production lines which feature seven vacuum-laminating machines and six drilling machines. Laser drilling machines have been ordered from Germany and are expected to be put into operation in February 2005.
The factory is equipped with a power generator to ensure continuous operation during power outages. It has a monthly production capacity of 25,000 square meters of FPCs and 4,000 square meters of rigid-flex FPCs. It is currently operating at 70 percent utilization rate.
Our first stop was on the first floor. There are three etching lines, two plating copper lines and a nickel gold plating line. We also saw cleaning equipment, hot air leveling machines and Hitachi drill machines in the workshops.
All this column of information contained in China Sourcing Reports is the result of original, independent and impartial research conducted by Global Sources analysts.
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