Prices of copper-clad laminates (FCCL) in China are set to fall in 2015 amid increasing competition, according to industry sources.
Korea-based FCCL suppliers, which have seen their production utilization rates affected by weaker-than-expected sales of Samsung Electronics' smartphones, are gearing up to lower their quotes in order to snatch orders from China, the sources indicated.
With Korea-based players set to drop their prices, the ASP for FCCLs in China will likely fall in 2015, the sources noted.
In addition, China-based FCCL producers including Shengyi Technology and ATEM Electronic Technology have expanded capacity more aggressively, bringing more competition to the market, the sources said.
Taiwan-based Taiflex Scientific and ThinFlex, which both generate a considerable portion of revenues from the China market, currently have no plans to significantly expand their production capacities in 2015. Their investments for the year will be focused on improving existing production yield rates and developing new materials such as high-frequency, ultra-thin and transparent substrates, according to company sources.
According to ThinFlex, production of adhesiveless two-layer (2L) FCCLs now a ccounts for 90% of its overall capacity. 2L FCCLs are targeted at mobile device applications, said the company, adding that it will continue focusing on high-end materials.
