Unimicron Technology indicated that it would not give up its consistent development in China, while saying that it would support Taiwan Printed Circuit Association's (TPCA's) plan to establish a printed circuit board (PCB) cluster in Vietnam, according to company chairman, Tze-Chang Tzeng.
Despite that the business environment is getting harsh in China with rising costs, Tzeng from Unimicron said the company would not give up its capacity in southern China in the near term, although it sees investment in central China such as Hunan as more cost-competitive. The company expects construction at its Hunan base to be completed in the second half of 2008. Tzeng anticipates that this plant's monthly capacity for traditional PCBs will be expanded to 2-3 million square feet in 2-3 years, he updated.
While expansion will carry on in China, Tzeng said Unimicron is also eyeing investment in Vietnam. Unimicron is assessing several proposals about its investment in the territory, including joining TPCA to place investment in the planned PCB zone, or establish a plant on its own. Tzeng noted that the company prefers the first proposal. Either of these proposal will be put into action in the second half of 2009.
Commenting on the near-term PCB outlook, Tzeng guided that first-quarter sales will slip by about 15% on quarter due to seasonality and inventory correction at customers. Sales for traditional PCBs will drop most on a utilization rate of 75%. Overall sales will be supported by handset-use PCBs and substrates on a utilization rate of 80%, he said. Citing customers projections, he noted that demand should warm up from June, meaning that quarterly sales should hit bottom in the second quarter.
Unimicron chairman Tze-Chang Tzeng
Photo: Ingrid Lee, Digitimes, March 2008
Article translated by Esther Lam
