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China's flexible PCB output to grow at 20% CAGR

Posted: 03 Oct 2006 ?? ?Print Version ?Bookmark and Share

Keywords:flexible PCB? China Printed Circuits Association? Double-sided PCB? Flex-rigid PCB? Multilayer PCB?

Mainland China's total output of flexible PCBs is estimated to grow at a compound annual growth rate (CAGR) of 20 percent, from 10 million square meters in 2004 to 32.9 million square meters in 2008, according to the China Printed Circuits Association (CPCA).

CPCA said production values for the segment reached $1.7 billion last year, up by 65 percent from $1 billion in 2004.

Currently, there are more than 100 flexible PCB makers in mainland China, over 70 percent of which are local companies. Most of these manufacturers are situated in Guangdong, Shanghai, Zhejiang and Jiangsu. However, it is estimated that over half of these makers are new entrants who began production of flexible PCBs between 2003 and 2004. From 2001 to 2005, the average annual growth rate of flexible PCB output in the region is estimated to have reached 60 percent due to demand from the mobile phone sector.

Most of the flexible PCBs offered in the region feature Sn/Pb or gold plating; line and space width of 70?m; hole of 0.2mm; and tolerances of 0.1mm and 0.05mm. Over 80 percent of the makers adopt board-to-board production. Some companies have introduced roll-to-roll production equipment to produce large-sized flexible PCBs. Makers are also trying to acquire the necessary facilities to enable the production of rigid-flex PCBs.

The flexible PCB industry has attracted more companies to join the market due to continued sales growth and wide coverage in product application. Zhuhai All-Winner FPC Co. Ltd aims to expand its PCB market share in the mobile handset sector. As one of the new entrants in the field, All-Winner expects its annual sales revenues to jump from $2.5 million in 2005 to $6.25 million this year.

Meanwhile, Global Circuit (Shenzhen) Co. Ltd, which began production of flexible PCBs in 2004, plans to expand its monthly capacity of flexible PCBs from 8,000sqm to 10,000sqm in Q3 as it projects a significant increase in demand starting in 2H of the year. Global Circuit will exhibiting at next week's China Sourcing Fair: Electronics & Components in AsiaWorld-Expo, Hong Kong.

However, with the increasing number of manufacturers joining the competition, flexible PCB quarter earnings are expected to fall within the year.

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