PCB prices to fall 10% in 2005 due to oversupply
Rapid growth in sales was experienced in 2005 by PCB manufacturers, with global revenues boosting 40% YTY due to surge in demand for consumer, communications and automotive electronics. Despite the 80% rise in costs of copper-clad laminate (CCL) (raw material used in PCBs) manufacturers maintained their low prices to intensify market competition. By Q4 2004, CCL costs became stable and makers from mainland China were able to increase sales by 5%.
Demand for PCB shipments in mainland China has decreased since December 2004, and may continue to decline through Q2 2005. Oversupply poses inventory issues forcing makers to delay production. iSuppli projects declining prices to as much as 10% as well, as a result from these oversupply threats.