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Manufacturing Conditions Are Limited PCB Manufacturers: Production Capacity Requires The Three Elements Of Land, Water And Power, And Manpower If Relocated To Taiwan
- Jan 05, 2019 -

Manufacturing conditions are limited PCB manufacturers: production capacity requires the three elements of land, water and power, and manpower if relocated to Taiwan


Source: PCB Shop
Last updated: 2018/12/20



       As technological trends in the future become clearer, many PCB manufacturers are actively deploying, including replacing equipment, upgrading processes, and expanding factories. For example, Flexium Interconnect has invested 10 billion to establish a 5G smart communication business operation center in Kaohsiung, while Career Technology is expanding its new factory in Guanyin. However, some manufacturers believe that the production environment in Taiwan is still lacking many elements. Unless Taiwan has room for expansion, the possibility of moving back to Taiwan is slim.        According to manufacturer analysts, whether Taiwanese business investors can return to Taiwan smoothly depends on the three conditions of land, water and power, and manpower. Since PCB is a special industry, it needs a considerable space, enormous investment, high consumption of water and power, and lots of manpower, among others. In view of the current situation, land is becoming more expensive and harder to find, while wages are getting higher, and manpower is becoming more difficult to recruit. Therefore, the equipment industry has emerged in recent years, especially those cost-effective manufacturers that are receiving more and more attention.        Some PCB industry manufacturers point out that various large-scale Taiwanese businessmen were returning to Taiwan years ago. Though cases of successful return are learned from other technology industries, hardly any news is heard about PCB manufacturers moving to Taiwan. The reason is that PCBs are labeled as causing significant pollution. Even if manufacturers propose adopting technology to effectively reduce waste emissions, few additional responses are learned afterwards. Furthermore, the fight to obtain land for establishing a factory often ends nowhere, ultimately leaving it unsettled.        

Moreover, relocating a factory is not as easy as one imagines; in addition to meeting basic conditions, the downstream customers, transportation systems, clustering effects, and other details also have to be considered. Therefore, the current production environment in mainland China is relatively mature when comparing to all these conditions. Therefore, many PCB manufacturers frankly state that once the production capacity has moved away from Taiwan, it is basically hard for them to move back. Although some have begun to evaluate production environments besides mainland China, the production advantages on the mainland are hard to give up. As viewed, not much action will be taken in the near future. (Source: Commercial Times)



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