PCB maker Unitech regaining growth momentum in 3Q20

Taiwan's PCB maker Unitech expects its business performance to return to normal in the third quarter of 2020 as its HDI and rigid-flex board production lines have been running at full capacity since the start of August, after suffering a bleak second quarter.

Unitech's second-quarter revenues plunged 38.06% sequentially and 60% on year to an 11-year low of NT$2.25 billion (US$76.53 million), with net operating loss reaching NT$688 million. Its first-half 2020 revenues contracted 43.82% on year to NT$5.882 billion.

Pandemic impacts on global auto sales and significant shrinkage in shipments of rigid-flex boards for AirPods 2 were to blame for poor business results in first-half 2020, according to industry sources.

But Unitech has resumed full capacity utilization for rigid-flex boards for battery modules and TWS (true wireless stereo) earphones, and its HDI board production lines are also fully loaded for MacBook and iPad applications, with the prospect that its revenues will rebound to normal levels in the third quarter, said the sources.

As the quotes for AirPods orders have been revised downward significantly, whether its 2020 revenues can grow from 2019 will depend on whether the growth momentum for its HDI PCB products can be revived, the sources said.

The company said its shipments of high-end automotive HDI PCBs, such as those for radars, and shipments of rigid-flex boards for auto-use lens modules, are less affected by the lackluster global auto market, but volume shipments for new orders landed in 2020 will be deferred to 2021.

Its new plant in China's Nantong, Jiangsu province, has started commercial runs at a capacity utilization of 70-80%, mostly for production of automotive PCBs.