Taiwan PCB Sales Rose by 12.7% in the Second Quarter of 2024 Reaching a Total Sales of NT$190.8 billion

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Taiwan Printed Circuit Association (TPCA) claims that Taiwan's printed circuit board sales rose 12.7% year-on-year in the second quarter on strong demand for AI servers, satellite communications, and automotive electronics, as well as a moderate recovery in the mobile phone and memory markets.

Total sales reached NT$190.8 billion ($5.97 billion) in the second quarter, added TPCA.

Following five quarters of recession, the carrier board resumed growth in the second quarter, with an annual growth of 2.6% on a recovery in the mobile phone and memory markets, offset in part by lower demand in the computer and networking infrastructure markets, which slowed sales of ABF carrier boards. Multilayer boards increased 13% year-over-year on strong demand for AI servers; HDI grew 21.2% driven by demand for AI servers, low-orbit satellites and automotive electronics. Flex and rigid-flex boards grew 12.8% and 19%, respectively, due to the recovery of the automotive and mobile phone markets.

In the second quarter, the communication application market had the highest growth rate of 32%, due mainly to mobile phones and satellite communications. In terms of mobile phones, in addition to the recovery of the market, the supply chain of mainland mobile phone brands has also brought significant assistance. In terms of satellite communications, as the competition in satellite operations becomes fiercer, operators have released order demand, accelerating the doubling of satellite PCB performance. The computer application market grew by 11.2%, driven by the demand for AI servers and the recovery of the general server market. Automotive grew 11% on electric vehicle sales. The impact of economic uncertainty and high inflation softened consumer sales, which declined 14%, the only PCB application market to fall.

In the second quarter, the main production bases of Taiwan's PCB industry are still concentrated in the Chinese mainland, accounting for about 62% of the output value. Mainland Taiwan accounted for about 35.2%, TPCA said.

In the context of geopolitical tensions and the replanning of the supply chain strategy of international customers, Taiwanese companies are actively expanding into Southeast Asia, and Thailand has become the focus of investment.

First-half cumulative domestic and overseas GDP was NT$372.2 billion, up 6% year-on-year. TPCA forecast growth would continue in the second half as the AI, satellite communications, and automotive markets continue to develop.

For the full year, GDP is expected to grow 8.3%, and the total output value at home and abroad will reach NT$833.7 billion, returning to the NT$800 billion level. However, TPCA said that factors such as geopolitical risks, the United States election, and China's economic volatility may still pose challenges to the market.

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