Impact of Foreign Exchange Fluctuations in Global PCB Industry


Reading time ( words)

The year 2014 was a bumper year for most PCB companies, with the total output value of the entire PCB industry reaching $12.5 billion, up by 10.5% from the previous year. This year, the prices of bulk commodities, particularly copper prices, plummeted—greatly reducing the raw material costs for PCB companies and thereby helping raise their profitability. This, according to a report titled "Global and China FPCB Industry Report, 2014-2015" by market analyst Research In China.

However, one factor greatly affecting the industry is the currency exchange. In 2014, the euro, the NTD (New Taiwan Dollar) and the yen significantly devalued, while the South Korean won appreciated—which not only hit a serious blow to the competitiveness of South Korean FPCB enterprises, but slashed the profits of South Korean PCB enterprises. Revenues and profit margins of all South Korean PCB companies declined; for example, Flexcom's sales slumped by more than 50%, and the giant Interflex's revenue dropped 33% and its operating margin was -14.2%--this reflects the power of the currency war, according to the report.

Benefiting from the currency depreciation, Taiwanese and European companies, meanwhile, witnessed soaring profit margins. Although more than half of Japanese companies did not benefit from the depreciation of the yen because they set up production bases overseas, they still fared better than their South Korean counterparts.

For more information, click here.

Share

Print


Suggested Items

Advances in Substrates for Thermal Management

02/13/2020 | Pete Starkey, I-Connect007
Pete Starkey and Eduardo Benmayor, general manager for Aismalibar, discuss ways in which insulated metal substrates have been modified to relieve stresses on the solder joints of high-end LED assemblies during thermal cycling. Eduardo also describes a range of thermally conductive FR-4 laminates that can be processed like standard FR-4 for applications where thermal dissipation can be maximized without changing the design.

Not All Plating Lines Are Created Equal

02/12/2020 | I-Connect007 Editorial Team
Barry Matties and Happy Holden met with CEO Michael Ludy and CMO Sarah Großmann from Ludy, a company specializing in galvanic plating equipment for PCBs. This interview gives an overview of Ludy and their latest advancements in PCB plating equipment.

AT&S: Working With Designers on a Global Level

02/05/2020 | Barry Matties, I-Connect007
Barry Matties recently took a tour of AT&S’s Austrian factory, which is developing new circuit design strategies surrounding embedded and active components. Gerald Weis discusses the company’s focus on serving and educating PCB designers around the world, as well as their plans to embrace the latest technology and Industry 4.0 processes going forward.



Copyright © 2020 I-Connect007. All rights reserved.