Taiwan's PCB Industry Sees Growth, Optimism for Q2 2024

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Taiwan’s PCB industry recorded a total output value of NT$372.2 billion in the first half of 2024, bolstered by strong demand in AI servers, satellite communications, and vehicle electronics. Industry experts remain optimistic about continued growth for the remainder of the year.

In the first half of 2024, the industry saw robust gains, particularly in the second quarter, when output value reached NT$190.8 billion, marking a 12.7% year-on-year increase. Cumulatively, the domestic and international output value for the first half stood at NT$372.2 billion, an annual growth of 6.0%.

Looking ahead to the second half of the year, the positive momentum driven by AI, satellite communication, and vehicle markets is expected to continue. Forecasts predict a total annual growth of 8.3%, with output value climbing to NT$833.7 billion, returning the industry to the NT$800 billion benchmark. However, challenges remain, including geopolitical risks, the upcoming U.S. elections, and economic uncertainties in mainland China.

The second quarter showed significant recovery for Taiwan's PCB products. After five consecutive quarters of contraction, the carrier board market posted a 2.6% annual growth, primarily fueled by improvements in the mobile phone and memory markets. However, demand for computer and network infrastructure remains weak, affecting the performance of ABF carrier boards.

Multi-layer boards saw a 13.0% annual increase, driven by rising demand for AI servers. High-Density Interconnect (HDI) boards surged by 21.2%, making them the top-performing product in Q2, supported by strong demand from AI servers, low-earth-orbit satellites, and vehicle electronics. Additionally, flexible boards and rigid-flex boards grew by 12.8% and 19.0%, respectively, thanks to the recovery in the automotive and mobile phone markets.

In Q2, communication applications led the way with a 32.0% growth, driven by the mobile phone market recovery and the increasing demand for satellite communications. Mainland China's mobile phone supply chain also contributed significantly to this rebound.

Satellite communications enjoyed robust growth, thanks to rising competition among satellite operators, accelerating demand for PCBs in this sector. The computer application market grew by 11.2%, driven by AI server demand and a rebound in the broader server market. Electric vehicles propelled growth in the automotive market, which saw an 11.0% increase. However, the consumer electronics sector was impacted by economic uncertainties and high inflation, declining by 14.0%, the only market segment to experience a drop in Q2.

Mainland China remains the primary production base for Taiwan's PCB industry, accounting for 62.0% of the output value in Q2. Taiwan follows with 35.2%. Amid geopolitical tensions and shifting supply chain strategies, Taiwanese manufacturers are expanding into Southeast Asia, with Thailand emerging as a key investment destination.

The TPCA Show, scheduled for October 23-25, 2024, is set to break records. The event will feature over 1,600 booths and 610 brands at the Taipei Nangang Exhibition Center. This year, the exhibition will focus on semiconductor manufacturing, sustainable practices, and high-end production technologies. Additionally, Thailand will take center stage, with industry, government, and academic representatives from both countries engaging in in-depth discussions. These exchanges aim to strengthen the resilience and global competitiveness of Taiwan's PCB industry.