Taiwan-based HDI PCB makers including Compeq Manufacturing and Tripod Technology have seen clear order visibility throughout 2021, and are expected to sustain full capacity utilization in the second half of the year, according to industry sources.
Compeq has reported its January-May revenues rose 4.22% on year to NT$21.983 billion (US$795.79 million), although its May revenues slipped 7.27% on year to NT$4.055 billion due to Labor Day holidays in China, where its main manufacturing operations are based.
The company is expected to see HDI board sales ramp up further in the second half of the year after new capacity at its plant site in Chongqing, China comes online, the sources said, adding that its peak-season revenues will also be bolstered by HDI shipments for new Apple devices.
Tripod's May revenues increased 10.72% on year to NT$4.736 billion, a record high for the same month, and January-May revenues rose 24% on year to NT$20.149 billion.
The company is highly confident of its business performance in the months ahead, with its new China plant at Xiantao, Hubei province now running at full capacity to fulfill abundant orders in hand. It has yet to see a slowdown in clients' pull-ins of HDI shipments for handset and other applications although Chinese handset vendors may revise downward their shipment goals for the year, the sources said.
Chinese handset vendors have little adjusted their order placements in the second quarter, and their order momentum for handset HDI mainboards will be determined by sales of new flagship models in the second half of the year, the sources indicated.
Nevertheless, the sources stressed, the handset clients are not expected to easily soften their order placements for HDI boards, as they are facing increasing competition for HDI capacity support from vendors of notebooks, tablets, memory modules and automotive electronics that see increasing adoption of HDI boards.