South Korean PCB industry weak in 2014

Since 2014, South Korea printed circuit board (PCB) industry was in trouble, at the same time, the global PCB industry was in big prosperity. South Korean enterprises experienced strong exchange impact of Korean won on sales and profitability, But main PCB industry manufacturer in Europe, Taiwan and Japan, due to weaknesses of the euro, Taiwan dollars, yen, weaknesses, relatively won better sales.

ET News cited market research agency RIC data which indicate that in 2014 the global PCB industry's total revenue size of 59.6 billion US dollars, the annual growth of 3.7%. Rapid growth appears in 2014, it is also a boom since 2011.

On the other hand, South Korea shrunken 9% PCB production scale, estimated 9.25 trillion won (about 8.4 billion US dollars). The main downstream industry in the mobile phone market was weak, the PCB industry is also affected. It reported that Taiwan and European companies which affected by weak exchange rates, profit improved a little, more than half of Japan's production was plant set up overseas, little affected by the exchange rate, but the performance is still good than Korean plant.

2014 global PCB market growth momentum is the mobile phone motherboard (HDI). As the smart phone screen sizes expand, mainland China and other new PCB manufacturer increased the production and expand the market for smart phone PCB manufacturers. Japanese enterprise Panasonic also involved in Anylayer HDI PCB manufacturing, in 2015 a number of global PCB enterprises is planning to expand their production of Anylayer HDI PCB.

Demand of internet server PCB raised from 2009 is also a main factor of PCB growth. Nanzih electronic and ACCL with internet server PCB advantage, 2014 annual revenues increased by 20% and 27% each. Automotive electronics PCB and excellent thermal performance metal PCB for LED, is also expected to increase.

In 2015, South Korea PCB industry is expected to get rid of appetite, make a production growth. Korean PCB factories are planning to enter the mainland China and other overseas markets, to expand the customer, engage into automotive electronics, semiconductors PCB and other high added value market, to improve profitability.

Korea Circuit and the Dade Electronics (Daeduck Electronics) and other major Korean PCB industry's prospects are bright. Driving by the developing of new products from major customers, orders are gradually restored. Based on the downstream market, the second half performance is expected to improve.

South Korean PCB industry expert explained, judging from 2014 global PCB industry trend, though not bad, but some of South Korea PCB industry with a high degree of dependence on certain customers in, still under attack of smart phone market underperformance, the won exchange rate etc. Estimated downstream market in 2015 is fine, should change the target base on the experience in 2014, diversify customers, strategically enlarge market size etc.