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Taiwanese PCB industry grow slowly in 2016

Taiwan Printed Circuit Association (TPCA) together with Industrial Economics and Knowledge Center (IEK), published a printed circuit board (PCB) Industry Report for first quarter 2016, it indicates as the global economy 2016 may stay recession, also with Chinese stock market turbulence, economic growth speed slowdown, thus influence Japan, South Korea and Taiwan and other Asian countries.
For PCB industry conditions in Japan and South Korea and other Asian regions in 2015, IEK reported, currently Taiwan continued to hold 30.2% of the global market as a top leader. In recent two years, the decline demand of downstream like cell phone, tablet etc, resulted a substantial decline in market share for Korea PCB. Japanese PCB manufacturers shift to seek high end products with more profit other than quantity of PCB output, therefore focus on niche applications with fewer competitors in the market.
On the other hand, mainland China PCB manufacturers continue to use low-price strategy to grab market share, which brings big threat to Taiwan's PCB industry. While after the peak growth period, China PCB industry is also facing growth bottlenecks, including how to cross the niche market and come into the mainstream market, how to reverse the poor quality image in the past, mainland China high-end technology and capacity investment is still fall behind Taiwan manufacturers ... etc. Therefore, whether the future mainland China PCB manufacturers’ threat to Taiwan PCB industry will continue to increase or decrease, still need more analysis.
In terms of the future development of the market, the current market in the PC applications still no improvement and communications products gradually matured. automobile-related industry is now seen as another new opportunity for electronic applications, Taiwanese circuit board industry has a very rich experience in manufacturing, with cooperation of both Taiwan and Mainland China, there is a good chance to enter the automotive electronics industry chain.
In terms of PCB production value,it said that in October 2015, is the peak season of Apple supply chain’s related companies. But because of Apple sales not as expected, its related companies in the fourth quarter showing a downward trend month by month, but the overall PCB output value of the fourth quarter was still slightly higher than in the third quarter.
The fourth quarter of 2015, Taiwanese PCB makers total output value is NT $ 152.8 billion, representing a growth of 3.6% compare the third quarter, compared with same period last year growth of -0.6%. Thus, in year 2015, the total output value is NT $ 573.2 billion, with annual growth rate of 1.79%. Which it should be noted that in 2015 the exchange rate depreciation of NT is about 5%, so the overall value of the dollar showed negative growth.
The first quarter of 2016, due to traditional seasonal factors to PCB manufacturers, and the Apple supply chain-related revenue decline rate is relatively large, the first quarter of 2016, Taiwanese board makers total output value is estimated about NT $ 133 billion, over the previous quarter growth is -13.0%, -1.6% growth over last year. Compared to last year, the estimated value of Taiwan PCB industry in 2016, growth rate is about 1.07%, reaches NT $579.4 billion.