Makers in PCB supply chain considering capacity ramps in Taiwan

Ingrid Lee, Taipei; Steve Shen, DIGITIMES [Thursday 22 November 2012]

Taiwan-based PCB back-up board maker Aurona Industries and copper-clad laminate (CCL) maker Iteq are considering either relocating their plants in China back to Taiwan or ramping up their production capacity in Taiwan instead of committing further investments in China, according to industry sources.

Tightening controls on wastewater emissions in eastern and southern China and persistent labor shortages, as well as rising labor costs have forced Taiwan's PCB companies to slow down capacity ramp projects in China, the sources revealed.

While some companies including Global Brands Manufacture (GBM), HannStar Board, Unimicro Technology and Tripod Technology are building new plants in central and western China, making new investments in Taiwan has also become an alternative for the PCB supply chain, the sources added.

Aurona has decided to relocate about 70-80% its back-up board production capacity in Kunshan back to Taiwan, saying that it can avoid tariffs 7.5% by shipping finished boards from Taiwan to China directly.

Aurona's new investment in Taiwan will total NT$108 million (US$3.7 million) with the new production lines to come online in the first quarter of 2013, revealed the company. Aurona will maintain a monthly production of capacity of one million boards in Taiwan and China.

Although Iteq has drawn up plans to build a new plant in Hubei, the company said it will give priority to ramping capacity in Taiwan. The expansion project in Taiwan will be completed in the first half of 2013 with a capacity of 300,000 units of CCLs, said the company.