Taiwan`s top PCB makers post revenue growth,

Major Taiwanese PCB (printed circuit board) makers have generally seen higher revenues in recent months, but many have had a hard time maintaining their profit margins.Most of the major PCB makers in Taiwan managed to increase their revenues last year, and many are expecting continuing revenue growth this year. Even so, the companies have generally failed to produce significant profits in recent years. Local PCB makers have long suffered from dropping gross margins caused by sliding prices as well as fierce competition worsened by the stagnation of overall demand.Most companies project 10-20% revenue growth for this year but are conservative in their profit predictions. Compeq Manufacturing, Taiwan’s largest PCB maker, held onto its lead with revenues of NT$15 billion last year. Still, its revenues dropped 6% from 2001, and it suffered a NT$1.7 billion loss in 2002.Compeq kicked off flip-chip production last year and expects to double its current flip-chip substrate shipments to four million units in the second quarter, with Intel as its major client. Thanks to the increase in shipments, the company expects to boost its capacity utilization rate from the current 28% to 56% in the second quarter.Unimicron Technology, formed from the merger of four local PCB makers in 2001, surpassed Nan Ya Printed Circuit Board (PCB) and secured second place by pocketing total revenues of NT$13 billion last year, up 44% from 2001.Also moving into flip-chip production, Unimicron is currently building a new flip-chip plant and plans to start production there in the third quarter, the company said.Nan Ya PCB’s revenue last year was NT$12 billion, up 16% from last year, but the company only managed to break even.Ya Hsin Industrial, the fourth on the list, grew its revenue 45% to NT$11 billion in 2002, claiming the highest year-on-year growth among the top five Taiwanese players. The company has also provided the most optimistic forecast for this year, predicting its revenues will grow 37% to NT$15 billion. The company posted NT$1.8 billion in pre-tax profits last year, the highest among local PCB makers.January revenues for Compeq, Unimicron and Ya Hsin were NT$1.2 billion, NT$946 million, and NT$1.81 billion, respectively. All the numbers were up compared to the same month last year. While Compeq and Unimicron were up by 20% and 16%, Ya Hsin’s revenues grew 80%.Nan Ya PCB’s January revenues were not immediately available, as it is not yet listed on the Taiwan Stock Exchange (TSE).Source: DigiTimes