TPCA announced that the PCB output value of Taiwanese businesses across the Taiwan Strait reached NT$221.4 billion (approximately US$7.943 billion) in Q3 of 2021, a record high for the period, with significant growth of 19.1% from NT$185.9 billion in the same period last year. It is estimated to reach NT$244 billion in Q4 of 2021 and NT$821.1 billion for the whole year, surpassing the NT$800 billion mark for the first time.

　　In terms of cross-strait production, Taiwan businesses’ production in mainland China accounted for 63.2% of total production, with output value in Taiwan growing by more than 20% quarter over quarter this year, a phenomenon not seen in the past few years. The main reason was that the global substrate market is hot, and substrates are the number one product produced in Taiwan by Taiwanese businesses, accounting for 34.5% in Q3, which benefited from the rise of applications such as 5G communication and high-performance computing and the increasing structural demand of the semiconductor industry, driving the growth of volume and price of high-end substrates.

　　According to TPCA, except for the continuous decline in the output value of flexible and rigid laminates, all other products in Taiwan have maintained the overall growth trend of this year, including IC substrates, which benefited from the short supply of ABF substrates and the demand pull for BT substrates by the new iPhone, the growth rate of IC substrates in Q3 came to 41.8%, which, together with the output value, was a record high. Flexible boards also benefited from the new iPhone launch, with a 20.8% growth rate in Q3, while multilayer boards grew at a 21.8% annual rate, second only to the IC substrates, driven by the traditional peak electronics season, WFH and stay-at-home economy. HDI segment still had double-digit growth, driven by laptops and consumer electronics, with 14.1% growth in the quarter.

　　Although the growth rate of PCB products of Taiwanese businesses in Q3 was impressive, it is tantalizing to note that the global shipment trend of major terminal products, in addition to personal computers, such as smart phones and cars, all declined in the quarter, except for personal computers, which showed slight growth of 3.8%. According to analysis, the global smartphone decline in Q3 was primarily driven by Samsung's 14.2% decline, but Taiwanese-funded supply chain, which relies on Apple's supply chain, was not affected. As for the sales of the global automobile market in Q3, the delivery of the whole vehicle was affected by the shortage of automotive chips, which disrupted the order of PCB delivery. However, with the emergence of automotive electronization, the use of electronic components, including panels, radars, antennas, etc., increased in vehicle design, expanding the application of circuit boards in the automotive market. Therefore, even though the shortage of materials had not yet been alleviated, the multiplier effect of diversified applications allowed automotive PCBs to continue to grow in this quarter. In addition, in terms of product lineup, it is also observed that some manufacturers have adjusted their product structure in response to market changes, shifting communication applications to computers and automotive electronics in a timely manner, demonstrating the advantages of production flexibility and diversity of Taiwanese businesses.

　　With 2021 coming to an end, global Q4 end markets, whether cell phones, notebooks, automotive and semiconductors, still have considerable demand after the epidemic gradually subsided, coupled with the continued supply shortage of substrates, production capacity continues to expand. It is optimistically forecasted that the overall cross-strait PCB performance of Taiwanese businesses for 2021 is expected to set another record. However, in the short term, we still need to pay attention to the chip shortage, the global shortage of electronic components and unresolved port congestion and its impact on the upstream and downstream shipments along the supply chain and whether it shall have a dampening effect and affect the overall growth of Taiwan's PCB industry. In the med- to long-term, we should pay attention to whether the power restriction and emission reduction measures in China will become the norm. The global trend of net zero carbon emission and customer pressure are also expected to be important issues affecting the overall industry development in the future, and deserve the industry's continued attention and early response.