In order to cut costs during an industry downturn, PCB makers have reduced their outsourcing proportion, affecting mass lamination services of copper clad laminate (CCL). According to industry players, sales of mass lamination service in the third quarter may see a 30% decline compared with last year.
Mass lamination service includes inner-layer and outer-layer mass lamination. Because of limited capacity, PCB makers usually do outsourcing for inner-layer mass lamination. The leading inner-layer mass lamination companies in Taiwan are Elite Material (EMC) and Taiwan Union Technology (TUC), the sources added.
Due to a weak economy, EMC has decided to delay the set up of its new mass lamination production line to October and suspend capacity expanding at its Zhongshan, China plant. EMC's utilization rate and profits may see a decline in the second half of this year, the sources noted.
TUC indicated that business from its mass lamination production site in Hsinchu, Taiwan generated NT$120 million (US$3.73 million) in losses in 2007, and the company has yet to emerge from the crisis. TUC pointed out that it will enhance its production process and improve management and capacity usage at the Hsinchu plant, and develop new customers in an attempt to swing its mass lamination business to profits.
