Taiwan PCB industry’s H1 production value reaches $11.7 billion

The total domestic and global production value of Taiwan’s PCB industry for the first half of the year was NT$372.2 billion (around USD 11.7 billion), an annual increase of 6%, boosted by strong demand in AI servers, satellite communications and automotive electronics along with a moderate recovery in the mobile phone and memory markets.

In the second quarter, the industry’s production value reached NT$190.8 billion (USD 6 billion), a year-on-year growth of 12.7%, the Taiwan Printed Circuit Association (TPCA) said.

Growth is expected to continue in the second half of 2024, thanks to continued development in AI, satellite communications and automotive markets.

The industry is projected to grow by 8.3% for the full year, with the total production value reaching NT$833.7 billion (USD 26.1 billion), marking a return to the NT$800 billion (USD 25 billion) threshold, according to a media release by the TPCA.

However, geopolitical risks, the US presidential election, and economic fluctuations in mainland China pose challenges.  

In the second quarter, growth in Taiwan’s PCB product market was visible across the board. After five consecutive quarters of decline, the substrate segment returned to growth in Q2 with a year-on-year increase of 2.6%, mainly due to the recovery in the mobile phone and memory markets. 

However, demand in the computer and networking infrastructure markets remained weak, impacting the performance of ABF substrates. Multi-layer boards saw strong demand due to AI servers, with a year-on-year growth of 13%. 

HDI driven by AI servers, low-orbit satellites and automotive electronics, experienced the highest growth in Q2 at 21.2%. 

Flexible boards and rigid-flex boards grew by 12.8% and 19%, respectively, due to the recovery in the automotive and mobile phone markets.

In the second quarter, the communications application market experienced the highest growth at 32%, benefiting from the recovery of the mobile phone market and increasing demand for satellite communications. 

In the mobile phone sector, in addition to the market rebound, entry into the supply chain of Chinese mobile brands provided a significant boost. 

In satellite communications, as competition among satellite operators intensified, operators released orders, accelerating the doubling of satellite PCB revenue. 

The computer application market grew by 11.2%, driven by demand for AI servers and the recovery of the general server market. 

The automotive application market, fueled by the electric vehicle boom, grew by 11%. 

However, the consumer electronics application market contracted by 14% in Q2 due to economic uncertainty and the impact of high inflation.

In the second quarter of 2024, Taiwan’s PCB industry’s primary production base remained in mainland China, accounting for about 62% of the total production value, followed by Taiwan at around 35.2%, the media release said.