Automotive PCB makers see promising demand from Asia
Jay Liu, Taipei; Willis Ke, DIGITIMES
Tuesday 24 November 2020
Taiwan’s automotive PCB makers have experienced a major change in shipment structures so far this year, with the ratio of shipments to Asia rising significantly and those for the US and Europe markets declining amid the pandemic, according to industry sources.
The makers, after suffering sluggish sales in first-half 2020 due to pandemic impacts on car sales, have seen shipments to overseas clients gradually rebound starting in late third quarter, the sources said. But shipment pull-in momentum from clients in Asia, where the pandemic has been better controlled than in the US and Europe, has been stronger than the other two regions.
In particular, the sources continued, demand from China for high-end automotive PCBs has picked up fast, adding further momentum to total Asia-bound shipments from Taiwan’s automotive PCB makers including Tripod Technology and Dynamic Electronics, although their major markets are in the US and Europe.
Automakers in the US and Europe have seen their factory operating rates rebound to 70-80%, but whether they can sustain the same rates amid the resurging pandemic in the winter remains to be seen, the sources said.
Leading PCB makers in China have moved to deepen deployments in high-end automotive boards following the slowdown in 5G infrastructure applications in second-half 2020, the sources said, but with much better credibility, yield rates and volume production capability, Taiwan’s PCB makers can more easily win orders for high-end offerings from automakers in China. At the moment, both Tripod and Dynamic are already in the supply chain for Tesla’s EV assembly plant in Shanghai, China, the sources added.