China PCB News: Experts warned that PCB manufacturers should be cautious of production expansion.
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As many manufacturers are rushing to launch low-price smart phones, the demand for HDI board keeps increasing. At present, it is said that the capacity utilization of HDI industry is higher than the average capacity utilization of the whole PCB industry. The capacity utilization of large-scale HDI manufacturers such as Yaohua Electronis, Compeq, Tripod Technology and Unimicron, is expected to maintain at the high level of 90% in the fourth quarter.
However, because of the serious European debt crisis and the gloomy global economic conditions, many experts said that the outlook of the demand for HDI products is uncertain and it is hard to make a forecast.
Dr. Hayao Nakahara in the Chongqing PCB forum said the supply of PCB products has already exceeded the demand. If many PCB companies continue to maintain a high enthusiasm about enlarging production, the prices of PCB products will eventually be lowered.
In addition, some expects said that PCB industry is entering a high-cost era because of the rising prices of raw materials and labor force, the appreciation of Chinese RMB and the pressure from environmental protection. The economic condition is not clear at this moment. Thus, experts warned that PCB manufacturers should be cautious of expanding their production.
