Impact of Foreign Exchange Fluctuations in Global PCB Industry


Reading time ( words)

The year 2014 was a bumper year for most PCB companies, with the total output value of the entire PCB industry reaching $12.5 billion, up by 10.5% from the previous year. This year, the prices of bulk commodities, particularly copper prices, plummeted—greatly reducing the raw material costs for PCB companies and thereby helping raise their profitability. This, according to a report titled "Global and China FPCB Industry Report, 2014-2015" by market analyst Research In China.

However, one factor greatly affecting the industry is the currency exchange. In 2014, the euro, the NTD (New Taiwan Dollar) and the yen significantly devalued, while the South Korean won appreciated—which not only hit a serious blow to the competitiveness of South Korean FPCB enterprises, but slashed the profits of South Korean PCB enterprises. Revenues and profit margins of all South Korean PCB companies declined; for example, Flexcom's sales slumped by more than 50%, and the giant Interflex's revenue dropped 33% and its operating margin was -14.2%--this reflects the power of the currency war, according to the report.

Benefiting from the currency depreciation, Taiwanese and European companies, meanwhile, witnessed soaring profit margins. Although more than half of Japanese companies did not benefit from the depreciation of the yen because they set up production bases overseas, they still fared better than their South Korean counterparts.

For more information, click here.

Share

Print


Suggested Items

I-Connect007 Editor’s Choice: Five Must-Reads for the Week

11/26/2021 | Nolan Johnson, I-Connect007
If you’re in the United States like I am, and if you celebrated with a traditional Thanksgiving dinner, like my family did, then you just might have fallen asleep sitting up in a chair (or in my case, stretched out on the couch) and missed some of the highlights in the news this week. Never fear, I woke up early to bring the top five news items you should know for this week. We have industry bookings and sales news from IPC, some news from the flex sector, an explanation of induction lamination from Happy Holden, and two different takes on “sustainability.”

Happy Thanksgiving From the I-Connect007 Team

11/25/2021 | I-Connect007
In the United States, the Thanksgiving holiday is a celebration of gratitude and appreciation for the harvest and for the people close to us. Thankfulness, however, transcends just one day of official observance. The fourth Thursday of November is when the U.S. officially celebrates Thanksgiving Day and as we take time to observe this holiday, the I-Connect007 team wishes to offer our thanks to you, our global readers and contributors: designers, fabricators, engineers, assemblers, quality and process control gurus, chemists, physicists, supervisors, managers, entrepreneurs, business owners, standards writers, industry experts, and more. You breathe life into the vital, thriving, world-changing electronics industry. You are the real story.

I-Connect007 Editor's Choice: Five Must-Reads for the Week

11/12/2021 | Nolan Johnson, I-Connect007
Welcome to Friday in mid-November. If you're celebrating Thanksgiving, have you made up your menu and bought the turkey? It will be here before you know it. Around here, we're talking financial news and I've selected my top five financial news items of the week. There was plenty to choose from and my picks this week highlight a few of the most-read financial news pieces from our industry, as well as a couple high-interest technology related pieces. We also released our latest webinar, an 11-part series from the expert at GEN3. Definitely check that one out!



Copyright © 2021 I-Connect007. All rights reserved.