Taiwan-based Tripod Technology has disclosed it has signed a contract worth NT$2 billion (US$64.8 million) for the construction of additional production lines at its manufacturing site in Xiantao, China.
The expansion project is targeted for completion by the end of 2019, and when the new capacity will come online will depend on customer demand, said Tripod Tech.
Tripod Tech said previously the company will focus on expanding capacity for multilayer boards to increase the added-value of its PCB products, while also deepening its deployments in the high-margin automotive boards. Raising the ratio of high-end PCB products will be the direction of its current operations, the company said.
Market obervers believe that the arrival of Tripod Tech's new production capacity is to meet robust demand for 5G-related devices starting 2020.
Fellow PCB company Zhen Ding Technology is also eyeing opportunities arising from 5G with plans to build additional capacities at its existing China factory sites in Qinhuangdao, Huaian and Shenzhen, according to the observers.
Unimicron Technology revised upward recently its capex plan this year by NT$2.32 billion to total NT$8.3 billion. Part of the additional capex is to acquire land for the expansion of its Huangshi factory site in central China for future customer demand, according to the Taiwan-based company.
Unitech Printed Circuit Board disclosed previously plans to expand its rigid-flex board portfolio for consumer electronics and automotive applications this year. In particular, sales generated from the automotive electronics sector will be driving future revenue growth, the company said. Unitech is constructing the first phase of its new plant in Nantong, Jiangsu province in China, with the construction scheduled for completion in 2019 followed by volume production in 2020.
Article translated by Jessie Shen
