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EPTE Newsletter: Small Recovery Signs From Taiwan

After emerging in China in December 2019, the novel coronavirus spread to over 200 countries around the world. European countries and the U.S. have reported a significant amount of cases over the last several weeks. The total number throughout Europe is 1.1 million and the U.S. reported 740,000 as of April 20, 2020.

The infection rate in Japan was relatively lower than in North America and Europe last month; however, this changed over the last two weeks. The number of new cases surpassed 10,000 on April 19. The number of new cases continues to increase, especially in the large cities of Tokyo and Osaka. The prime minister and prefectural governors issued emergency stay-at-home requests for at least one month, hoping to reduce social contact. White-collar workers are required to set up temporary offices in their residence and work from home, but manufacturing companies will suffer without any workers. Non-essential retail stores and restaurants are closed while grocery stores, pharmacies, and schools remain open. The Japanese economy will struggle during the second quarter of 2020.

Taiwan has kept the virus mostly under control. The number of total confirmed cases are at 420. Taiwan’s government learned from the 2003 SARS event and moved quickly to respond to the COVID-19 threat. Manufacturing companies continue with factory operations. Things are pretty normal for Taiwanese citizens. I spoke with some of my colleagues from Taiwan last week, and they say it is business as usual; the only inconvenience is the restriction on international travel.

Market data for March is pointing toward a strong rebound. Monthly revenue from Taiwanese printed circuit manufacturers posted negative results since November 2019. February brought a seasonal drop as well as a slowdown from the coronavirus; however, market data shows a significant rebound for March. This increase is greater than the normal spike in sales after the Chinese New Year. Another positive sign for the industry is the increase in material procurements from printed circuit manufacturers during March. This indicates that manufacturers are receiving orders from their customers. Figure 1 shows PWB shipments in Taiwan.

Figure 1: Monthly PWB shipments in Taiwan (public companies).

The global economy is slowing down dramatically, but the wheels have not fallen off the cart. The Taiwanese printed circuit industry could be considered the barometer for global consumer electronics, and the data suggests the industry will have an increase over the next few months.

Headlines

1. Samsung Display (display manufacturer in Korea) 3/31

Will terminate production of TV LCD panels by the end of 2020 and shift to OLED panels.

2. Taiwan Pucka (circuit manufacturer in Taiwan) 4/2

Developed a new manufacturing process to build 3D circuits on formed plastic housing, which eliminates wiring of the flex circuits.

3. NGK Spark Plug (ceramic device supplier in Japan) 4/3

Applied new ceramic antenna modules for 28-GHz band telecommunications. The device was built in antenna in package.

4. Murata (component supplier in Japan) 4/4

Stopped manufacturing MLCCs at the Fukui Plant for three days. An employee had tested positive for COVID-19, so 5,500 employees stayed at home.

5. Osaka University (Japan) 4/13

Developed a new photochemical process to generate ammonia from seawater at room temperature using sunshine and a new catalyst.

6. Iris Ohyama (kitchenware supplier in Japan) 4/13

Will roll out a new AI monitoring camera system for business use. The system measures visitors’ temperatures and detects face masks.

7. ZMP (device manufacturer in Japan) 4/14

Will roll out a new model of 3D LiDAR with a wider angle for the auto-drive systems with an accuracy of ± 5 cm at 200 meters.

8. Nishimatsu Construction (construction company in Japan) 4/14

Co-developed a new chemical process to convert carbon dioxide to methane using microbial fuel cells with Gunma University.

9. Sharp (electronics company in Japan) 4/15

Started the manufacturing and delivery of the face masks to protect novel coronavirus infection.

10. Fuji Keizai (market research company in Japan) 4/16

Forecasted the global market of fuel cell batteries. The total will be 4.5 trillion yen by 2030, which is 22.6 times in growth from 2018.

11. Tokyo Institute of Technology (Japan) 4/16

Generated EUV rays using polymer bubbles that will be available for next-generation patterning equipment.

12. NEDO (R&D organization in Japan) 4/16

Developed transparent flexible films with many functions using new AI programs, which could minimize the trials to get the films.

Dominique K. Numakura is the managing director of DKN Research LLC. Contact haverhill@dknreseach.com for further information and news.