Fuyang Technology will be transforming into a manufacturer of ABF substrates after losing flexible PCB orders from Apple in 2020, with its business restructuring led by Kinsus Interconnect Technology, according to industry sources.
Fuyang , a Kinsus-Pegatron joint venture set up in late 2016 to produce flexible PCB, managed to enter the Apple supply chain in 2019 through Pegatron, long a contract assembler for iOS devices. But it was removed from among the vendor's suppliers in 2020 due to its production capacity and yield rates lagging behind leading flexible PCB suppliers such as Zhen Ding Technology, Flexium Interconnect, Compeq Manufacturing and China's DSBJ, the sources said.
Pegatron gradually shifting its production focus from Apple devices to IoT and automotive electronics has denied further support for Fuyang, the sources said. This, coupled with a fire hitting its plant in Hsinchu, northern Taiwan in October 2020, prompted its two major shareholders to terminate flexible PCB production, the sources continued.
As ABF substrate supply crunch continues to intensify, Kinsus is responsible for converting Fuyang's manufacturing facilities to support production of such substrates to meet robust demand from clients and boost its market share in the segment, the sources said.