Taiwan-based CCL makers including Elite Material, Iteq, Taiwan Union Technology and Ventec International are set to raise their quotes soon to reflect rising costs for copper foil and other materials, according to industry sources.
The makers are following in the footsteps of their Chinese peers Kingboard Holdings and Shengyi Technology, both of whom have notified clients about price hikes since late second-half 2020, the sources said.
Apart from mounting international copper prices driving up copper foil costs, prices for other CCL materials such as glass cloth and epoxy resin are also rising significantly amid increasing shortages, necessitating price hikes by CCL vendors, the sources said, adding that they may determine how the quotes will be adjusted after negotiating with PCB clients.
General copper foils have seen much higher cost increases than those for high-end applications, due mainly to persistently strong demand for notebooks supporting stay-at-home economy and a significant rebound in demand for automotive applications since late 2020, the sources said.
CCL makers noted the ongoing wave of price increases for diverse copper foils is not expected to end any time soon, as high international copper prices can hardly be reversed in the short term when the US dollar remains weak, and demand growth for copper foil will continue to outpace capacity expansion at suppliers, the sources continued.
CCL makers are expected to sustain strong shipments for consumer electronics and automotive applications in first-half 2021, and their sales of high speed/frequency offerings for 5G base station and other networking applications will also ramp up significantly starting the second quarter, promising them a bright prospect for the entire year, the sources said.
Article translated by Willis Ke
