PCBs may see shortages in 2008 as capacity expansion stalled by China environmental rules

Citation

(2008), "PCBs may see shortages in 2008 as capacity expansion stalled by China environmental rules", Circuit World, Vol. 34 No. 1. https://doi.org/10.1108/cw.2008.21734aab.001

PCBs may see shortages in 2008 as capacity expansion stalled by China environmental rules

PCBs may see shortages in 2008 as capacity expansion stalled by China environmental rules

The printed circuit board (PCB) market may see shortages in 2008 as expansion plans of makers in China are being hindered by tough regulations concerning waste water control, according to industry sources.

The PCB industry, which consumes high quantities of water and electricity, is finding it almost impossible to expand capacity in southern and eastern China where waste water disposal is tightly monitored, the sources said.

With no more waste water quota available in the regions, the authorities have stopped issuing new environmental assessment certificates. The waste water quota can only be freed up when existing factories are shut down, the sources added.

PCB makers think that the stagnant capacity expansion will help the industry achieve a balance in supply and demand, and there is a chance that PCBs will run into shortages next year, according to the sources. Gold circuit electronics (GCE) may still be able to expand its capacity at its current PCB plant at Changshu in south-eastern China because it has not used its entire waste water quota already awarded by the authorities, according to the sources. It plans to increase monthly capacity to 1.5 million square feet in 2008 from the present 1.2 million square feet.

But GCE said the plant's second- phase project has not yet received waste a water disposal license and it will be difficult to expand next year. GCE is now assessing the possibility of setting up a production base in Vietnam, the sources said.

In contrast, Unitech PCB's plant in Shanghai will have little problem expanding its capacity next year, as it has received a 2008 waste water quota that is double that of 2007, the sources said. It plans to double its Shanghai plant's monthly capacity to 3 million units in 2008 from the current 1.5 million units.

With no immediate capacity expansion issues in China, Unitech has no plans to set up production in Vietnam, the sources said.

Ack. Ingrid Lee, Taipei; Rodney Chan, DIGITIMES.