Automotive PCB makers to see shipments peak in September-October

Taiwan’s automotive PCB makers expect their shipments to reach the year’s peak in September-October after suffering a bleak first-half 2020, and may see clients step up inventory build-ups by the end of year to brace for the lingering pandemic, according to industry sources.

PCB makers now mainly deliver their shipments to automakers in the US and Europe who have seen capacity utilization gradually pick up to over 70% since mid-August though the coronavirus’ impacts remain severe in the regions, the sources said.

It remains to be seen whether clients in the US and Europe will ready more inventories in case the pandemic worsens in the winter, but car sales recovery in the regions has been slower than expected, as consumers’ spending has been undermined by the pandemic, becoming reluctant to purchase new cars despite government subsidies.

PCB makers have seen shipments of high-end automotive PCB deferred to 2021 along with their clients delaying the launch of new high-tier vehicles originally slated for second-half 2020, the sources said.