Taiwan-based copper-clad laminate (CCL) makers, including Elite Material (EMC), Iteq, Taiwan Union Technology (TUC) and Uniplus Electronics, have turned cautious about their business outlook for the fourth quarter of 2010 due to a slowing of PCB orders.
EMC indicated orders it has landed for October were similar to those received in September, supported mainly by demand for handsets. However, order visibility for November and December remains low.
Iteq expects its October sales to be about the same or slightly better than those of September. However, the company declined to comment on the last two months of 2010 due to low order visibility.
TUC revealed the company has seen demand turn weak since October. Uniplus also admitted finding demand across all applications appears dull in October, and has given a more pessimistic outlook for the rest of year.
In addition, industry sources have expressed concern that upcoming capacity ramp-ups by the CCL makers may cause a supply glut in 2011.
EMC has revealed plans to ramp up its capacity by 150,000 units at each of its plants in Taiwan and China in the fourth quarter, which will push its total capacity to two million units a month by the end of 2010. Meanwhile, Iteq's monthly capacity at its facilities in Taiwan and China is set to reach a total of 3.1-3.3 million square feet by year-end 2010, compared to the current level of three million square feet. Both TUC and Uniplus Electronics also plan to expand their production capacities.
CCL makers: Revenues, Sep 2009 - Sep 2010 (NT$m) |
Month | EMC | Uniplus | Iteq | TUC |
Sales | Y/Y | Sales | Y/Y | Sales | Y/Y | Sales | Y/Y |
Sep-10 | 369 | 2.3% | 105 | (14.4%) | 455 | 27.1% | 511 | 28.1% |
Aug-10 | 412 | 30.1% | 125 | 4.6% | 426 | 48.6% | 551 | 43.6% |
Jul-10 | 422 | 25.9% | 131 | 64.4% | 481 | 38.1% | 602 | 45.1% |
Jun-10 | 393 | 34.6% | 136 | 159.5% | 594 | 81.5% | 591 | 90.6% |
May-10 | 350 | 14.1% | 150 | 113% | 477 | 29.2% | 531 | 83.8% |
Apr-10 | 379 | 11% | 157 | 84.7% | 411 | 30.8% | 581 | 81.9% |
Mar-10 | 416 | 29.2% | 175 | 78.1% | 418 | 31.5% | 585 | 78.4% |
Feb-10 | 307 | 12.4% | 85 | 28.2% | 322 | 12.9% | 456 | 81.7% |
Jan-10 | 348 | 76.2% | 110 | 335% | 350 | 63.5% | 468 | 194.3% |
Dec-09 | 246 | 24.7% | 81 | 65.7% | 360 | 63.4% | 410 | 115.3% |
Nov-09 | 243 | 91.8% | 101 | 112.9% | 311 | 18% | 385 | 64.7% |
Oct-09 | 334 | 29% | 93 | (10.4%) | 353 | (10.8%) | 439 | 10.2% |
Sep-09 | 361 | (4.6%) | 122 | 21.9% | 358 | (25.8%) | 399 | 0.1% |
*Figures are not consolidated
Source: TSE, compiled by Digitimes, October 2010