2024/3/21 19:51 (updated at 3/21 22:14)
The Taiwan Circuit Board Association (TPCA) held the 11th 3rd Member Conference and Benchmarking Forum in Taoyuan on the 21st. It was chaired by Chairman Li Changming (pictured). After the meeting, he was interviewed about the issue of rising electricity prices and expressed his willingness to cooperate with the price increases. However, we hope that the power supply will be “stable, sufficient, and green.” (Provided by TPCA) Fax of Central News Agency reporter Jiang Mingyan, March 21, 113
(Central News Agency reporter Jiang Mingyan Taoyuan on the 21st) In response to the planned increase in electricity prices, Li Changming, chairman of the Taiwan Circuit Board Association (TPCA), said frankly that the impact is indeed quite large, but the industry understands the price increase factors and is willing to cooperate, but hopes that the government can commit ” Stable, sufficient, green energy”, hoping that the power supply will be stable and sufficient, and there will be no shortage of electricity.
The Taiwan Circuit Board Association (TPCA) held the 11th 3rd Member Conference and Benchmarking Forum in Taoyuan today. It was chaired by Chairman Li Changming. He also accepted media interviews after the meeting.
Regarding the expected increase in electricity prices, Li Changming frankly admitted that it will indeed have a huge impact on the PCB industry, especially in high-end processes, such as ABF factories. For example, TSMC’s 2nm factory uses more electricity than 10nm. There are more factories.
As a senior consultant of Xinxing, Li Changming said that Xinxing’s production of ABF carrier boards is a high-end process with larger automation and clean room area, which means that after the increase in electricity prices, Xinxing will definitely spend more.
However, he pointed out that the industry fully understands that in the process of transforming to green energy, electricity price increases are inevitable, and the industry will cooperate with the price increase, but hopes that the government can at least achieve “stable, sufficient, and green energy”. The industry expects the power supply to be stable and There will be no shortage of electricity, and we will move towards green energy to reduce carbon emissions. We also hope that nuclear energy will be extended in service.
He further emphasized that “there must be no shortage of power” because an instantaneous power outage will cause great damage to production equipment.
Li Changming also said that the key industry trends in 2024 will focus on geopolitics, green sustainability and AI. Affected by geopolitics, the supply chain has begun to expand overseas, and Thailand will become a new settlement for the global PCB industry.
He pointed out that due to the slow global economic recovery last year, Taiwan’s PCB manufacturing output value dropped by 16.7% to NT$769.8 billion in 2023. As electronic product inventories are reduced, inflation eases, and AI applications flourish, the industry will come out of the trough. The overall electronics and PCB industry is expected to usher in the next growth cycle in 2024. It is estimated that Taiwan’s PCB manufacturing output value will reach 818.2 billion yuan in 2024, with a growth rate of approximately 6.3%.
In addition, most Taiwanese PCB factories have moved to Thailand to set up factories to create a flexible supply chain. Not only Taiwanese companies, but also mainland Chinese PCB factories are now actively moving to Thailand. TPCA said that it is currently actively negotiating with Thai industrial zones and must step up energy construction. Otherwise, when the production capacity is opened in two years, the power supply will definitely be insufficient.
Li Changming also said that since mainland Chinese PCB factories are actively moving into Thailand, Taiwanese companies and Chinese factories will still be in a situation of “grabbing for people and orders”. It is not ruled out that product price competition will occur and wages will also increase, which means that costs will Profit margins will become more difficult. (Editor: Yang Lanxuan) 1130321
Further reading
It is estimated that electricity prices will increase by an average of 11% starting from April, with more than 90% of residential buildings increasing by 5%, and the highest increase in industry by 25%.
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