Taiwan-based flexible PCB specialists remain positive about their performance in the second quarter of 2020, thanks to stronger-than-expected demand for new notebooks and tablets needed to support remote work and homeschooling amid the coronavirus pandemic, according to industry sources.
Most FPCB makers saw their revenues for March rebound sharply as downstream assemblers of notebooks and tablets rapidly replenished FPCB inventory in the month after resuming normal production that was disrupted by the coronavirus outbreak peaking in China in February.
Top supplier Zhen Ding Technology's March revenues shot up 230% sequentially to NT$8.258 billion (US$274.28 million), a record high for the same month, thanks partly to its plants in China returning to normal production and partly to delivering deferred shipments to clients.
Zhen Ding chairman Charles Shen has said that strong inventory replenishment momentum at clients is expected to last through the second quarter of the year, further driving up the firm's revenues for the quarter.
Maintaining major production in Taiwan, Flexium Interconnect has seen its capacity utilization less affected by the pandemic, but its actual shipments to downstream assemblers remained low in February before spiking sharply along with their resuming regular operations in March.
Flexium's March revenues surged 87.8% sequentially and 46.5% on year to NT$2.146 billion, and its first-quarter 2020 revenues also rose 6% on year to NT$4.602 billion. The company, relying heavily on shipments for Apple devices, is expected to see stronger-than-expected replenishment demand from the vendor, said the sources.
The sources said that Apple and other consumer brand vendors are expected to ready sufficient components inventory for their new devices released in first-half 2020, in order for their components suppliers to fully brace for production of new flagship models set for launch in the second half.
The sources noted Apple's newly released iPad Pro and MacBook series are enjoying good sales amid mounting pandemic-driven demand for remote work and learning applications. This will significantly push up revenues of Taiwan's FPCB partners, who have together landed at least 50% of FPCB orders for the devices.
Article translated by Willis Ke
