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

Benchmarking Your Process Engineering

04/29/2021 | I-Connect007 Editorial Team
Mark Thompson has been in bare board fabrication for over 30 years. He is now laying out printed circuit boards at Monsoon Solutions, a high-tech design bureau near Seattle, Washington. With Mark’s extensive hands-on knowledge of PCB manufacturing, he brings a unique perspective to PCB design. In this discussion with the I-Connect007 editorial team, Mark shares what’s important from a process engineer’s point of view, and how to stay on top of evaluating and benchmarking your manufacturing process, along with insights from his new role as a designer.

Isola Releases IS550H Material

04/26/2021 | Nolan Johnson, I-Connect007
Nolan Johnson speaks with Michael Gay of Isola and Chris Hunrath of Insulectro about the release of their new halogen-free, high-thermal reliability material, which they hope fills the gap in the market between epoxies and polyimides.

EIPC Technical Snapshot: Supply Chain and Material Price Pressures

04/26/2021 | Pete Starkey, I-Connect007
EIPC’s seventh Technical Snapshot webinar on April 14 was timely and appropriate. In the context of current supply chain issues and material price pressures facing the PCB industry, particularly in Europe, the EIPC team brought together an outstanding group of experts—each a leading authority in his field—to analyse and comment upon the areas of concern and to respond to questions raised by a capacity audience. As Alun Morgan said, “If you don’t use the European supply chain, you won’t have it anymore!”



Copyright © 2021 I-Connect007. All rights reserved.