China-based PCB manufacturers including Suzhou Dongshan Precision Manufacturing (DSBJ) and Jiangxi Holitech Technology have moved to expand their production capacities, eyeing a bigger piece of the global PCB market, according to a Digitimes report.
DSBJ completed its acquisition of US-based Multi-Fineline Electronix (MFLEX) in July 2016. The transaction, valued at approximately $610 million, has reportedly allowed DSBJ to break into the supply chain for Apple’s iPhones. After securing Apple’s orders, DSBJ has increased substantially capex for equipment upgrades and new plant construction. Digitimes reports that DSBJ is expected to build additional production capacity of considerable size, which will likely have a series impact on the existing PCB industry players mainly Taiwan- and Korea-based firms.
For its part, Holitech has stepped up equipment purchases recently to expand production capacity. The company has obtained orders from Huawei, Xiaomi and Oppo with more attractive prices, bringing pressure on mainly Taiwan-based rivals.