5G and EV Demand Bolstering Surprising PCB Sector Growth in 2020

Demand for electronic parts, PCBs from 5G, IoT, and vehicle applications are strengthening outbound growth in the first nine months of 2020, despite a pandemic outbreak that has crippled countries' economies.

Outbound electronic parts reported strong performance, increasing 22.3% in the first nine months of 2020. A strong contender in second place is the PCB field, which also saw a 5.3%-export growth buoyed by 5G, IoT, and vehicle applications.

According to Taiwan's Finance Ministry, many PCB firms have relocated their production to China or Southeast Asia due to environmental issues in recent years, lessening its impact on Taiwan's exports. However, the Finance Ministry expressed further observation regarding the growth between January and September this year.

The emerging 5G and electric vehicle (EV) industries have powered demand for materials in the PCB upstream chain. Firms said orders from clients have backed up to next year and had plans to expand production capabilities.

Taiwan Printed Circuit Association (TPCA) also pointed out that the pandemic has introduced a short-term impact on PCB production. However, emerging sectors like 5G and EV has helped smooth out the edges. TPCA estimates a 1.5% market value growth for Taiwan-based PCB makers this year, amounting to NTD$672.1 billion.

Outbound areas for the PCB market still see China and Hong Kong at the top, making up 57% of exports, with the ASEAN region behind at 16%. Many firms have been moving large PCB plants to Vietnam and other ASEAN countries in recent years, backed up by a rapid increase of export ratio to the region.