Handset PCB makers optimistic about 1H 2008
Handset printed circuit board (PCB) makers are optimistic about demand in the first half of 2008 although it is still uncertain exactly when Motorola orders will pick up, according to industry sources.
The uncertainty about Motorola's orders has not stopped makers from predicting that demand from the US client in the first half of 2008 will not be as weak as that seen in the same period of 2007, the sources said. In addition, with orders from other handset clients expected to rebound, the makers look forward for business to rebound in the first half of 2008, compared to one year earlier.
The sources said that in addition to Motorola, such vendors as Sony Ericsson and High Tech Computer (HTC) are expected to increase their orders in the first quarter of 2008.
Motorola has been Taiwan handset PCB makers' chief client, but the vendor's inventory issues and strategy changes have resulted in weaker orders for the suppliers.
But orders from other handset clients have managed to boost handset PCB suppliers' shipments in the second half of 2007, with Unimicron Technology, Compeq Manufacturing and Unitech Printed Circuit Board seeing their monthly sales hit company records during the fourth quarter.
The handset PCB makers are watching product development at Motorola very closely, with the vendor said to be running test production for several new models, the sources said.
Sources with Compeq said the company started developing new clients for handset high density interconnect (HDI) PCBs in the second quarter of 2007, and the efforts are starting to bear fruit. The new clients for HDI PCBs are expected to fuel Compeq's growth in the first half of 2008, the sources said.
Sources with Unitech said worldwide handset shipment growth in 2008 will only be 10%, and therefore there will not be explosive growth for handset PCBs next year. But the increase in the proportion of high-end handsets will help boost revenues for the PCB suppliers, the sources said.
The Unitech sources said the extent of growth will depend on the actual increase in orders from Motorola and other major clients.
source
The uncertainty about Motorola's orders has not stopped makers from predicting that demand from the US client in the first half of 2008 will not be as weak as that seen in the same period of 2007, the sources said. In addition, with orders from other handset clients expected to rebound, the makers look forward for business to rebound in the first half of 2008, compared to one year earlier.
The sources said that in addition to Motorola, such vendors as Sony Ericsson and High Tech Computer (HTC) are expected to increase their orders in the first quarter of 2008.
Motorola has been Taiwan handset PCB makers' chief client, but the vendor's inventory issues and strategy changes have resulted in weaker orders for the suppliers.
But orders from other handset clients have managed to boost handset PCB suppliers' shipments in the second half of 2007, with Unimicron Technology, Compeq Manufacturing and Unitech Printed Circuit Board seeing their monthly sales hit company records during the fourth quarter.
The handset PCB makers are watching product development at Motorola very closely, with the vendor said to be running test production for several new models, the sources said.
Sources with Compeq said the company started developing new clients for handset high density interconnect (HDI) PCBs in the second quarter of 2007, and the efforts are starting to bear fruit. The new clients for HDI PCBs are expected to fuel Compeq's growth in the first half of 2008, the sources said.
Sources with Unitech said worldwide handset shipment growth in 2008 will only be 10%, and therefore there will not be explosive growth for handset PCBs next year. But the increase in the proportion of high-end handsets will help boost revenues for the PCB suppliers, the sources said.
The Unitech sources said the extent of growth will depend on the actual increase in orders from Motorola and other major clients.
source
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