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【Hot Spot】Global FPC output value decreased by 12.6% yearly, and it is expected to return to growth next year

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【Hot Spot】Global FPC output value decreased by 12.6% yearly, and it is expected to return to growth next year
Latest company news about 【Hot Spot】Global FPC output value decreased by 12.6% yearly, and it is expected to return to growth next year

The Taiwan Printed Circuit Board Association (TPCA) and the International Institute of Obstetrics and Technology of the Industrial Technology Research Institute recently announced that this year, due to high inventory and declining consumer demand, the global FPC production value will decline by 12.6% to US$17.2 billion, and it is expected to grow by 5.4% next year. .

 

According to the report, the global FPC production value in 2022 will be approximately US$19.69 billion, a slight decrease of 2% compared to 2021, ending two consecutive years of growth. This year, limited by high inventory and declining consumer demand, it is estimated that the global soft board market will decline by 12.6% to US$17.2 billion.

 

Looking forward to 2024, the report pointed out that after the terminal inventory adjustment has come to an end, major markets such as mobile phones and computers are recovering, and the demand for automotive FPCs continues to increase. It is estimated that the global FPC market will return to a growth rate of 5.4% in 2024.

 

In terms of manufacturers’ funds, the report pointed out that Taiwanese capital is still the largest supplier of soft boards, accounting for about 41.1% of the overall output value, followed by Japanese capitals and land capitals. Manufacturers from these three places account for about 30% of the global soft board market. 90%.

 

In terms of application, the report pointed out that due to the huge scale of the mobile phone market, communication products are the largest application market for FPCs, accounting for 56.2%, followed by computer applications at 19.8%, and automotive applications at 13.6%.

 

Although in 2022, it will be affected by the decline in consumer demand and customers' continuous inventory adjustment. The demand for soft boards faces no small challenges. Most manufacturers are still actively planning capital expenditures on high-frequency and high-speed, multi-layer and thin-line, and automotive flexible boards (especially battery flexible boards), etc., to expand production capacity and improve technology to cope with future market demand changes.

 

In order to balance geopolitical risks, the supply chain is adjusting to the China+1 layout strategy. Southeast Asia has become an investment hot spot for companies. The same is true for the soft board industry. Among them, Japanese companies are the most active, and their investments are mostly concentrated in Thailand and Vietnam. In recent years, they have continued to expand their factories for mobile phones and car-related products. FPC manufacturers in Mainland China have not yet launched relevant layout in Southeast Asia.

 

In addition to Yuanyu's announcement of setting up a factory in Thailand, the Taiwanese factory has. Zhen Ding, a leading soft board factory, also plans to expand in Thailand, but mainly produces hard boards for cars and servers. Taihong, a flexible PCB substrate supplier, is also focusing on the huge potential of the automotive market in Southeast Asia. Last year, it announced investment in Thailand, and it is expected to mass-produce by the end of 2024. It can be predicted that in the next five years, the PCB output value in Southeast Asia will usher in a substantial growth.

Pub Time : 2023-09-04 16:41:25 >> News list
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