Profitability

Since 2014, the South Korean PCB industry has faced challenges, particularly due to the strong Korean won, which negatively impacted sales and profitability. In contrast, the global PCB industry experienced growth, with total revenue reaching $59.6 billion in 2014, a 3.7% increase. This growth was driven by demand for mobile phone motherboards (HDI) and internet server PCBs. South Korea's PCB production shrank by 9% in 2014, affected by a weak mobile phone market. However, companies in Europe, Taiwan, and Japan, benefited from weaker local currencies, improving their profitability. To overcome these challenges, South Korean PCB manufacturers plan to expand into overseas markets, particularly in automotive electronics and semiconductor PCBs, to improve profitability and reduce dependency on a limited customer base. The outlook for 2015 is positive, with expectations of market recovery and growth in new product lines. Read More

To maintain high margins in a competitive market, particularly when facing discounters and numerous competitors selling similar OEM products at lower prices, businesses should focus on originality, differentiation, and innovation. While innovative products require higher initial investment in product development, they allow companies to set prices with less pressure, leading to better profitability. This strategy is particularly relevant in the electronics industry, where prototyping in regions like Shenzhen, China, can support product innovation. Read More