Notebook PCB Makers Uncertain about Capacity Expansion Next Year

The slowing world economy has influenced in a negative way the market demand for notebooks, and PCB makers like HannStar Board and Gold Circuit Electronics (GCE) failed to meet their third quarter shipment targets, while other notebook PCB makers seem rather conservative about capacity expansion plans for 2009. The capacity growth of notebook PCBs in 2009 is estimated to be more than 15 percent, while global notebook shipments are expected to grow quite steadily during the next two years.

In 2007, the global notebook shipments went to over 100 million units, while in 2008, shipments are expected to reach 147 million units, including netbooks. According to Digitimes, in 2009, shipments should reach 187 million units, meaning that there will be around 25 percent on-year growth each year, which will continue throughout 2010 as well.

HannStar Board registered 15-million shipment for notebook PCBs during the third quarter, lower than the forecast 16 million units. The total shipments went to 17.5 million units if netbook PCBs are added. During the first three quarters, notebook PCB shipments totaled 41 million units, reaching 45 million units if netbooks PCBs are added. This marks an increase over the total 2007 unit shipments, which were 41.8 million. HannStar Board aims at a global market share of 45 percent this year.

GCE reported third quarter PCB shipments of 7.7 million units, going down 2.8 percent from the second quarter.

Notebook PCB shipments did not meet general expectations, yet the segment sees demand higher than for other applications. HannStar Board and GCE saw utilization rates of 90 percent, while they were fully loaded during the second quarter. GCE increased the capacity of its Changshu plant by 100,000 square feet, while HannStar Board expanded its capacity by 600,000 square feet, although a 1.2 million square feet increase was expected.

Since the PCB capacity expansion is strictly limited by the Chinese government, future development for some PCB companies is uncertain. Besides, there will be a condensation in the industry structure, and PCB makers may improve profit.