- Traditionally, companies headquartered in Taiwan have been leading in PCB manufacturing, with many setting up production in mainland China over the past decades. About 40 PCB companies from Taiwan now generate more than 25 percent of their revenue in mainland China.
- These investments have solidified mainland China’s position as the largest supplier of PCBs, maintaining a consistent share of around 50 percent of global PCB exports over the past decade.
- Manufacturers headquartered in Taiwan, such as Zhen Ding, Unimicron, Mektech, Compeq, Tripod, and Nanya, are prominent globally and within mainland China.
- Recently, production within China has increasingly shifted to mainland companies like DSBJ and SCC, partly due to government subsidies for the semiconductor industry.
- Some Taiwanese companies have begun relocating part of their production outside mainland China. However, according to a study by the consultancy TEJ, about two-thirds of Taiwan-headquartered PCB manufacturers with investments in mainland China have not yet relocated their production.
- Of the one third that have relocated, most have moved to Thailand, Vietnam, and Malaysia. Trade data shows a significant increase in PCB exports from Vietnam, the Philippines, and Malaysia over the past three years (compared to 2018-2020).
- These trends indicate a gradual shift in trade patterns, although not as pronounced as expected. One major barrier is the polluting nature of PCB manufacturing, which makes it less attractive to host countries compared to other semiconductor manufacturing processes.
Sinolytics is a research-based business consultancy entirely focused on China. It advises European companies on their strategic orientation and specific business activities in the People’s Republic.