According to Kung-Yen Hsiao, spokesperson of Chin Poon, a major automotive PCB manufacturer, the global automotive market has seen a recovery after a significant freeze in the first quarter.
Hsiao stated that there has been a gradual recovery from April to May, with the second quarter performing better than the first, reaching about an 80% availability rate. However, the sustainability of this trend under high inflation remains to be seen.
Regarding the highly anticipated Electric Vehicle (EV) business layout, Hsiao mentioned that to compensate for the future decline in global internal combustion engine vehicle sales, Chin Poon is continuously expanding its related business.
It is reported that the EV supply system consists of three main segments: traditional car manufacturers, new American EV startups, and the Chinese EV supply chain. Chin Poon has a comprehensive layout in all three supply chains and has achieved the annual targets as planned. Hsiao stated that automotive PCBs have been fully shipped to these manufacturers.
Notably, since 2018, the average age of vehicles in Europe has increased by about a year. According to Hedges & Company, the average vehicle age in the United States will reach 12.5 years by 2023. During the COVID-19 period, the average vehicle age also increased.
Chin Poon cited data from the International Energy Agency (IEA), which indicated that EV sales will reach approximately 17 million units in 2024, suggesting that a mature market is experiencing strong growth. Sales in 2024 are expected to exceed those in 2023 by over 20%, with EVs accounting for more than 20% of total vehicle sales.
If EVs aim to gain global popularity, prices need to reach levels similar to major Chinese manufacturers like BYD. However, tariffs in Europe and the US, along with the expected $30,000 price for internal combustion vehicles, play a significant role. US market research shows that unless prices drop to $30,000 or below, the incentive for average wage earners to purchase vehicles is low, with $30,000 approximately converting to about NT$800,000 or less being more attractive.
Hsiao frankly stated that there is higher growth from 2023 to 2024, with better chances if the trend from the second half of 2023 can be maintained. However, the automotive market froze in the first quarter and slightly warmed in the second quarter, necessitating further observation to see if the trend can continue.
Chin Poon expects the availability rate to continue increasing in the second and third quarters. The unfavorable factors are the rising electricity prices and Copper-Clad Laminate (CCL) costs. The pandemic previously disrupted the supply chain, while in the first half of 2024, it shifted to a demand issue, with inflation and high interest rates remaining negative factors.
Chin Poon's telecommunications business layout focuses on low-orbit satellites and 5G communications. In 2020, the company obtained the "AS 9100 Aerospace Quality Management System" certification and has been expanding its low-orbit satellite business. It is reported that two customers have already passed certification and started shipments.
In addition, Chin Poon is actively developing other low-orbit satellite operators. In 5G communications, the company mainly collaborates with two leading European customers. Given the geopolitical impact, Chin Poon's plant in Thailand is expected to increase related orders in the communications sector.
Article translated by Heidi Yin-Hsuan Tai
