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China-based PCB manufacturers including Suzhou Dongshan Precision Manufacturing (DSBJ) and Jiangxi Holitech Technology have moved to expand their production capacities eyeing a bigger piece of the global PCB market, according to industry sources.
DSBJ completed its acquisition of US-based Multi-Fineline Electronix (MFLEX) in July 2016. The transaction valued at approximately US$610 million has reportedly allowed DSBJ to break into the supply chain for Apple’s iPhones.
After securing Apple’s orders, DSBJ has increased substantially capex for equipment upgrades and new plant construction, said the sources. DSBJ is expected to build additional production capacity of considerable size, which will likely have a series impact on the existing PCB industry players mainly Taiwan- and Korea-based firms, the sources noted.
Meanwhile, Holitech has stepped up equipment purchases recently to expand production capacity, the sources indicated. Holitech has obtained orders from Huawei, Xiaomi and Oppo with more attractive prices, bringing pressure on mainly Taiwan-based rivals.
Additional new capacity at China-based PCB firms will come online in 2018, which will start to impact the global PCB industry landscape, according to the sources.
The global PCB industry is currently led by Taiwan-based players including Zhen Ding Technology Holding and Flexium Interconnect, which continue to enhance their manufacturing capabilities to remain competitive. On the other hand, Nippon Mektron and other Japan-based firms have moved to reduce their capex for expanding PCB production, the sources identified.
In addition, Korea-based firms are looking to expand their influence in the global PCB industry. Interflex, BHE, and Samsung Electro-Mechanics are reportedly among the flexible PCB suppliers for the upcoming OLED iPhone model, while LG Innotek plans to enter mass production of FPCBs for smartphones in 2018, according to Korea’s local media.
China PCB firms expanding production capacity
Photo: Digitimes file photo
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