Phoenix Precision Technology to build PCB plant in Suzhou, China
Sep 28, 2006
IC-substrate supplier Phoenix Precision Technology (PPT) has received Taiwan government permission to invest US$50 million in building a printed circuit board (PCB) plant in China, according to a company filing with the Taiwan Stock Exchange (TSE).
This is the first time PPT has invested in China. PPT general manager Hu Chu-chin said that the PCB plant, which will be located in Suzhou, will have a monthly capacity of 800,000 square meters.
Hu said the company decided to set up the China plant in order to be close to its clients since some of its clients have expressed the hope that PPT can set up facilities in China.
In the long run, PPT may also move its low-end plastic-ball-grid-array (PBGA) lines to China, with Taiwan remaining the production base for flip-chip (FC) substrates, Hu added.
Hu said the company hopes all the paper work can be done by the end of this year, so that construction can begin in 2007, and production can commence in 2008.
FC substrates are PPT's chief output. Of PPT's capex of NT$4.6 billion (US$139.5 million) for 2006, NT$1.6 billion is budgeted for construction of a new FC-substrate plant, while the rest is for expansion of its existing FC-substrate plants.