Japan’s Ministry of Economy, Trade and Industry (METI) recently released October’s production data from the Japanese printed wire board (PWB) manufacturers. Total revenue from shipments was 91.2 billion yen (roughly US$822 million), representing a 15.1% growth from September and a 3.3% growth from the same period in 2006.
Total volume shipped was 2.28 million square meters which equates to an 8.1% increase from September and 3.9% increase from the same period in 2006.
This increase in volume was not specific to any single product; in fact each printed circuits industry segment experienced a rebound compared to previous months.
The multi-layer rigid circuit boards segment was a standout posting significant increases in volume. Four layer printed circuits and six to eight layer printed circuit boards increased 26.6% and 41.6%, respectively, compared to the previous month.
Flexible printed circuits (+ 8.3%) and module printed circuits (+ 10.1%) also posted strong gains; however, volume from single-side flexible circuits remains stagnant.
Volume from double and multi-layer flexible printed circuits continues to increase thus defining a clear growth trend.
While volume levels remain high for the rigid module printed circuit segment, shipments for the past month seemed to show some weakness. Shipments for other module printed circuits remained sluggish during October; however, representatives from a few manufacturers have communicated a possible rally near-term as demand has recently turned upward.
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September shipment data did not reveal signs pointing to a rebound for the Japanese PWB market contrary to strong results posted during the third quarter from Korean and Taiwanese PWB industry players.
Although some pessimism surrounded the Japanese PWB industry in 2007, positive growth is predicted for 2008.
Several PWB manufacturers from Japan, Korea and Taiwan each reported an increase in business and orders during the third quarter or, the beginning of the fourth quarter, citing several reasons for an increase in demand.
- Global cellular phone market continued to show growth during the year
- The flat panel TV market has flourished due to lower pricing
- The digital camera market showed significant growth.
- The video game / machine market grew again this year with the introduction of new products from Nintendo.
Rigid printed circuit board manufacturers have increased their business since the third quarter, but flexible printed circuit manufacturers did not see any increase right away. Rigid circuit board and flexible circuit board manufacturers in Taiwan are now operating at full capacity.
On the cellular phone note, above, Korean cellular phone manufacturers are attracting more customers than Motorola this year, and accordingly, both rigid printed circuit board manufacturers and flexible circuit board manufacturers in Korea are busy. Representatives from two flexible circuit board manufacturers commented they are receiving more orders than their manufacturing capacities can handle.
The PWB industries in Japan, Korea and Taiwan have remained busy during the fourth quarter and all will probably enjoy the holiday season as well. However, industry insiders are not optimistic with PWB market forecasts for the New Year.
The Sub-Prime mortgage meltdown in the U.S. has created an unclear economic horizon and the Asian consumer electronics industry depends heavily on the purchasing power from the U.S.
Asian electronics company management close their books for the holidays, but they cannot stop their minds from racing with all of the “what ifs” they face when 2008 arrives.
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