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EPTE Newsletter: August PCB Shipments in Taiwan

The Taiwan Printed Circuit Association (TPCA) recently released the PCB shipments report for the month of August. The Taiwanese PCB industry can be considered the barometer for global consumer electronics. Shipments during August declined, but let’s take a closer look at the data.

Usually, during the third quarter, on-hand inventory levels are increased to satisfy the demands during the holiday season. However, August shipments did not follow this historical trend. Figure 1 details revenue and shipments for Taiwanese manufacturers.

The sharp drop in revenue during January is due to the Chinese New Year that was celebrated one month earlier this year. The COVID-19 pandemic has also attributed to this drop. Shipments rebounded in February and March for both rigid and flex circuits, and revenue increased each month beginning in April. The rigid circuits segment showed increases during July and August, with revenue setting a record for August. The growth of flex circuits was relatively weak, and revenue during August was down double digits compared with the same month last year.

Working from home continues, and demands for personal computers and related devices are strong. The rigid circuits segment is the benefactor of this, and forecasts show a strong fourth quarter. The forecast for the flex circuits segment is unclear. Most of the demands for flexible circuits come from smartphones and mobile devices. The rollout of Apple’s newest iPhone is delayed, so it is too early to predict the activity from flex circuits’ manufacturers.

Total revenue from printed circuits in Taiwan came in at a minus 1.9% during August compared with the same month last year. The forecast for the fourth quarter will be a little clearer once we view the September performance. Stay tuned!

Headlines

1. Panasonic (electronics company in Japan) 8/31
   Rolled out a new standalone-type lithium-ion battery with 3.5 kWh for home and office use (retail price without installation: 1.26 million yen).
2. TDK (device supplier in Japan) 9/14
   Commercialized a new series of film capacitors for three-phase AC circuits (rating: 250–1,000 V).
3. Toshiba (electric and electronics company in Japan) 9/15
   Commercialized a new series of photorelay devices with small-sized packages, which reduces mounting space by 84% (size: 2.1 x 3.4 mm).
4. Kia Motors (automobile supplier in Korea) 9/16
   Released a new marketing strategy for EVs. The percentage of EV will be 25% by 2029 to establish a leading position in the global industry.
5. Tokyo Institute of Technology (technical college in Japan) 9/16
   Developed a new halogen-based blue luminous material eliminating toxic elements with high conversion yield (95%).
6. Nagoya University and Kanazawa IT (Japan) 9/23
   Co-developed a wireless power supply system by microwave for long distances up to several kilometers.
7. EU Patent Office 9/23
   The number of patents for battery technologies filed during 2005–2018 grew by 14% per year. One-third was filed by Japanese companies.
8. SEIKO EPSON (electronics company in Japan) 9/24
   Developed a new optical engine module “MV-40” for smart glass devices. The resolution is upgraded 50% higher.
9. Yano Research Institute (market research firm in Japan) 9/25
   Forecasted 1.11 trillion yen (28 million units) for the laser lighting device market in 2027 from 0.55 trillion yen in 2020.
10. NTT-AT (a subsidiary of NTT in Japan) 9/26
    Will commercialize a new transparent glass for photovoltaic cells. The glass does not absorb visible light but infrared light. It will be used for the windows of smart buildings.

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