Taiwan Tops Global PCB Production, Surpasses Japan and Korea Rises

In the initial half of this calendar year, the global Printed Circuit Board (PCB) market encountered challenges, witnessing a decline in production output among major manufacturers compared to the preceding year. Nevertheless, empirical data from reputable industry associations and research institutions underscores Taiwan's continued dominance in global PCB production values, maintaining the foremost position worldwide. Notably, South Korean PCB manufacturers have surpassed their Japanese counterparts, securing the second position on a global scale.

According to the insightful analysis provided by the Taiwan Printed Circuit Association (TPCA), the Japanese and South Korean PCB industries, leveraging their design prowess in terminal products, have strategically transitioned away from low- to mid-range products. A discernible focus has shifted towards high-technology realms such as flexible boards and PCBs with elevated technical thresholds. Japan has now emerged as the second-largest global producer for flexible boards and the third-largest for traditional PCBs, widely applied in critical sectors such as semiconductors, communications, and automotive electronics.

In tandem, major South Korean manufacturers have undergone a significant pivot towards PCB development following their exit from High-Density Interconnect (HDI) technology. Presently, South Korea has ascended to the second-largest position in global PCB production, with a primary emphasis on Bismaleimide Triazine (BT) boards. These boards find extensive application in mobile processors, Double Data Rate (DDR) memory, and Solid State Drives (SSD). In the midst of dynamic market conditions, diligent observation of competitive strategies has become a pivotal consideration for industry stakeholders.

Within the Japanese PCB landscape, an approximate fifty percent of production remains anchored in Japan, closely followed by China and Southeast Asia (Thailand and Vietnam). Recent strategic efforts have centered on board and automotive board businesses, specifically targeting Ajinomoto Build-up Film (ABF) boards. High-end product manufacturing is predominantly concentrated within Japan, featuring key players such as IBIDEN, SHINKO, MEIKO, and KYOCERA. Automotive PCB applications span a diverse range, encompassing flexible boards, High-Density Interconnect (HDI), and multilayer board products, acknowledged for their maturity, stability, and labor-intensive production processes. Production facilities are strategically distributed across Japan and overseas, with significant contributors including MEKTEC, MEIKO, and CMK.

Conversely, within the South Korean PCB sector, approximately sixty percent of manufacturing operations are situated domestically, with subsequent contributions from China and Southeast Asia (Vietnam and Malaysia). Traditionally excelling in HDI, Korean companies have grappled with competitive pressures from Taiwanese and Chinese counterparts, resulting in the recent departure of major industry players such as SEMCO, LG Innotek, and Daeduck Electronics. These entities have realigned their focus towards high-value-added board ventures, fortifying production capabilities in South Korea and Southeast Asia. Pioneering companies like SEMCO, LG Innotek, Daeduck, and Simmtech are actively expanding ABF board production capacities, with Simmtech consistently advancing its involvement in BT boards and high-end HDI business.