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World PCB Production Report for the Year 2010

Published July 2011


TABLE OF CONTENTS Introduction: Methodology and Sources ........................................................................................................................................................................ 1 Overview of the PCB Industry in 2010........................................................................................................................................................................... 3 World Production by Region and Type of Substrate ..................................................................................................................................................... 5 PCB Production in the Asia/Pacific Region ................................................................................................................................................................... 9 PCB Production in Europe .......................................................................................................................................................................................... 15 PCB Production in Africa and the Middle East ............................................................................................................................................................ 18 PCB Production in the Americas ................................................................................................................................................................................. 19 Special Report on HDI/Microvia Boards: Trends, Applications and Forecasts ........................................................................................................... 22 Special Report on the Metal Clad PCB Market ........................................................................................................................................................... 25 Appendices: PCB Product Category Definitions .............................................................................................................................................................................. 27 Exchange Rates .......................................................................................................................................................................................................... 28 Historical Trends in Worldwide PCB Production ......................................................................................................................................................... 31 Published by IPC, Inc., 3000 Lakeside Drive, Suite 309 S, Illinois, 60015, USA, tel: 1-847-615-7100, www.ipc.org Copyright 2011, IPC - Association Connecting Electronics Industries, Bannockburn, Illinois. All rights reserved under both international and Pan-American copyright conventions. Any copying, scanning or other reproduction of these materials without the prior written consent of the copyright holder is strictly prohibited and constitutes infringement under the Copyright Law of the United States.


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Introduction: Methodology and Sources This report is one of several annual industry studies published by IPC, but the methodological basis is different. While most of the annual studies are based on industry surveys, the estimates in the World Report are the result of a consensus process. They are based on input from a variety of sources, including IPC surveys, data and studies published by other private organizations and governmental agencies, and the estimates of leading industry analysts. This panel of industry analysts reviews all the information collected, and through a consensus process they arrive at the final estimates for this report. Because these estimates are derived from a consensus process, they may vary somewhat from the participating analysts’ own estimates which they may publish separately. Caution should be used when comparing data in this 2010 report with earlier reports in the series, and with reports from other sources. There is no source of data on worldwide PCB production that can claim to be 100 percent accurate. All such data are estimates. The estimates published by various organizations will differ somewhat due to differences in methodology, sources and category definitions. It is extremely difficult to obtain accurate worldwide information and data that is comparable from country to country. IPC’s methodologies and sources may change from year to year, as IPC is continually looking for new sources of information that will enhance the accuracy of the estimates in this report. IPC’s policy is to develop a new report each year based on the best available information. Please note that the paper and composite categories of past reports have been altered this year. Paper now includes CEM-1. CEM-3 is in a separate category. This, too, should be considered when making comparisons with prior year’s reports. The estimates reported here are in nominal U.S. dollars which have not been adjusted to factor out inflation. When comparing to prior years it should be remembered that the resulting growth rates include inflation. Also, most data is gathered in local currency and converted to U.S. dollars. Therefore, it is important to consider the impact of exchange rate fluctuations when using these estimates. In cases where other currencies have weakened against the U.S. dollar, the dollar estimates reported may be overstated. When other currencies have strengthened against the dollar, the dollar estimates may be understated. The exchange rate tables in the appendices show the change in currency values versus the dollar from 2009 to 2010. The World PCB Consensus Committee met in May 2011, where they shared their own information and reviewed data from other sources to arrive at consensus estimates of PCB production by country and product type worldwide. The members of this committee are among the world’s leading analysts in the electronic interconnection industry. By generously sharing their knowledge and time, they made it possible for IPC to publish this report for IPC members. Members of the 2010 World PCB Consensus Committee: Michael Gasch, President, Data4PCB Mark Hutton, Managing Director, BPA Consulting Harvey Miller, President, Fabfile Online

Hayao Nakahara, President, N.T. Information Phil Plonski, Managing Partner, Prismark Partners Sharon Starr, Director of Market Research, IPC


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Many other organizations and individuals contributed their estimates and expertise to this project. They include: China Printed Circuit Association (CPCA) European Institute of Printed Circuits (EIPC) Hong Kong Printed Circuit Association (HKPCA) Japan Electronics Packaging and Circuits Association (JPCA) Taiwan Printed Circuit Association (TPCA) IPC conveys its sincere thanks to the committee members and contributors for their support of the industry. This report is not available for sale. It is available only to IPC members as a benefit of membership. It can be accessed and downloaded from the members-only area of IPC’s website, via a log-in page, at www.ipc.org/market-research-for-members For more information about this report, please contact Ms. Sharon Starr, IPC’s director of market research, at [email protected] or +1 847 597 2817.

http://www.ipc.org/market-research-for-members

mailto:[email protected]


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Overview of the PCB Industry in 2010

Economics and the Electronics Industry

Recovery from the 2008-2009 recession began in the second half of 2009 and was in full swing throughout 2010. Although some economies hit a soft patch in mid-2010, the year ended with strong economic growth. That growth continued into 2011 at a slowing rate. Most economies have now returned to normal rates of growth. In aggregate, the world’s real gross domestic product (GDP) grew 3.8 percent in 2010. The Economist Intelligence Unit (EIU) is forecasting 3.0 percent growth in 2011. The electronics industry tends to grow faster than the economy due to the growing demand for new electronic products. Most segments of the electronic interconnect industry have, by now, surpassed their pre-crash sales levels. Sales of all electronic products increased 16 percent in 2010, according to Henderson Ventures, and are expected to grow another six percent in 2011.

The PCB Industry The worldwide PCB industry grew 19 percent in 2010 and six percent growth is projected for 2011, according to Custer Consulting Group. These numbers reflect real growth in constant dollars. It should be noted again that the estimates in this report are in nominal dollars and do not factor out the impact of inflation or exchange rate fluctuations. There are approximately 2,600 PCB fabricators worldwide, which produced an estimated US$54.772 billion in PCBs in 2010. As explained in the introduction, this is a consensus estimate and the individual committee members may publish slightly different estimates of their own. Dr. Hayao Nakahara, for example, estimates world PCB production in 2010 at $55.3 billion, based on his knowledge of the many small companies in China. More about his estimate for China is discussed in the “Comments on Asia” section. The top 100 PCB companies produce around 75 percent of the world total, according to Dr. Nakahara. Based on a comparison of IPC’s 2009 and 2010 estimates of world PCB market size, the market grew 24 percent in 2010, not factoring out inflation or exchange rate fluctuations. In constant dollars, the market grew just under 20 percent in 2010. PCB production growth was strong in all regions. Production in Asia has continued to outpace growth in other regions and is now 87 percent of world PCB production. North American production grew the least with 6.9 percent in constant 2009 dollars. Also in constant dollars, European production value increased 14.4 percent and Asian production grew 21.1 percent. It should be noted, however, that the 2010 estimate for China’s production is 45.5 percent higher than the 2009 estimate primarily due to new sources of information acquired in 2010. The committee believes previous estimates of China’s PCB production were understated. The fastest growing product categories in 2010, based on estimates developed for this report, were rigid-flex with 83 percent growth in nominal dollars and metal core at 69 percent nominal growth. A special report on page 25 looks at the market drivers for metal clad PCBs. High-performance rigid boards and regular flexible circuits grew the least in 2010, with nominal growth rates of around 6 percent and 8 percent respectively.


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Unlike the rigid PCB segment, the flexible circuit industry has always involved some level of component assembly. Estimates for flex and rigid flex may include some assembly revenue. It is difficult for manufacturers of flexible circuits to separate revenues from assembly and bare boards. Flexible circuit fabricators are adept in attaching stiffeners, connectors and other components to a base that is thin and perhaps unwieldy compared to the rigid substrates that most SMT assemblers are familiar with. Flexible circuit fabrication and assembly has long been a specialized business, although some traditionally rigid board manufacturers are beginning to add flex to their product lines. One important trend is that PCBs are getting smaller on average, and this negatively affects the materials and chemistry markets, but offers good opportunities for equipment suppliers. With the benefit of tax incentives in the past year, PCB manufacturers in Taiwan, especially, have invested heavily in new equipment that gives them the advantages of faster production and higher yields.

The Laminate Industry The worldwide laminate business grew by about 41 percent in 2010 in value terms, according to Phil Plonski, but laminate production measured in square meters was up just 23 percent. The higher growth rate in laminate value was due to technology changes and price increases.

Metal Prices Metal prices continued to soar, rising 39 percent in 2010. Metal prices continue to be volatile and the EIU is forecasting a further 24 percent rise in metal prices in 2011. From January through June of 2011, the prices of copper, lead, nickel, tin and gold increased between 19 and 35 percent. The price of silver had an 82 percent price rise during this period. Prices are expected to stabilize in 2012 and will be flat or declining slightly in 2013 through 2015, according to EIU. IPC members can check the trends in metal costs at www.ipc.org/MetalPrices, which is updated on the first of every month.

Currency Fluctuations Changes in PCB production values from year to year can be affected by currency fluctuations. For that reason, this report includes PCB production values in both U.S. dollars, for the sake of comparison, and local currencies. Most Asian currencies strengthened against the U.S. dollar in 2010. Brazilian, Canadian and Mexican currencies also strengthened against the U.S. dollar. The euro weakened against the U.S. dollar by 5 percent, while other European currencies were mixed but generally fluctuated very little. When other currencies strengthen against the US dollar, growth in those countries’ PCB production value in U.S dollars is inflated, and is therefore smaller than the dollar figures suggest. The reverse is true when other currencies weaken against the U.S. dollar. A table showing exchange rates for 2009 and 2010, and the percent change, can be found on pages 28-30 in the Appendices to this report.

http://www.ipc.org/MetalPrices


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World Production of Printed Circuit Boards by Region and Type of Substrate Shown below are the consensus estimates of the value of printed circuit boards (PCBs) produced in each region in 2010 by type of substrate. Detailed data by country for each of the regions listed below is shown on subsequent pages.

World PCB Production by Region in 2010 (in millions of US dollars)

Paper & CEM-1 CEM-3

FR-4 Glass Epoxy

Metal Core

Standard Multi-Layer

High-Performance

HDI Microvia

IC Substrates

Total Rigid PCBs

Flexible Circuits Rigid Flex

Total Flexible Circuits

Total PCBs

Asia/Pacific 1,373 1,255 5,063 85 17,105 620 7,545 7,165 40,211 5,190 2,510 7,700 47,911Europe 151 29 633 48 1,296 100 246 0 2,503 179 142 321 2,824Middle East & Africa 5 1 75 0 72 2 3 4 162 10 35 45 207North America 9 7 310 50 2,283 425 182 30 3,296 235 165 400 3,696Other Americas 17 2 54 0 59 0 1 0 133 1 0 1 134WORLD TOTAL 1,555 1,294 6,135 183 20,815 1,147 7,977 7,199 46,305 5,615 2,852 8,467 54,772

Asia/Pacific87.5%

Europe5.2%

North America

6.7%

Other Americas

0.2%Middle East

& Africa0.4%

World PCB Production by Region in 2010


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Asia/Pacific86.8%

Europe5.4%

North America

7.1%

Other Americas

0.3%Middle East

& Africa0.3%

Rigid PCB Production by Region in 2010

Asia/Pacific90.9%

Europe3.8%

North America

4.7%

Other Americas

0.0% Middle East & Africa

0.5%

Flexible Circuit Production by Region in 2010


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Production of PCBs by the Top 10 Producing Countries The top ten PCB-producing countries accounted for almost 94 percent of world PCB production in 2010, based on value. China (including Hong Kong), Japan and Taiwan together accounted for 70 percent of total world production. China’s share continues to grow, gaining six percentage points in 2010. Japan’s share declined from 20.5 percent 2009 to 17.0 percent in 2010. The U.S. share of world PCB production continued its decline in 2010. In 1984, the USA produced 42 percent of the world’s PCBs. By 1989 its share had declined to 28 percent and it was overtaken for the first time by Japan. In 2006, China overtook Japan as the world’s leading PCB producer.

40.3%

17.0%

12.7%11.1%

6.2%

2.2% 2.1% 1.0% 0.9% 0.8%0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

China Japan Taiwan Korea USA Thailand Germany Singapore Malaysia India

Top 10 PCB Producing Countries in 2010 and Their Percent of World Output (based on value)


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World PCB Production by Board Type

Paper & CEM-12.8%

CEM-32.4%

FR-4 Glass Epoxy11.2%

Metal Core0.3%

Standard Multi-Layer38.0%

High-Performance2.1%

HDI Microvia14.6%

IC Substrates13.2%

Flexible Circuits10.3% Rigid Flex

5.2%

World PCB Production by Type of Substrates in 2010


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PCB Production in the Asia/Pacific Region (U.S. Dollars)

Shown below is the market value of PCB production in the major producing countries of the Asia/Pacific region for 2010. Figures shown are in U.S. dollars on this page and in local currency on the next page.

Production of PCBs in Asia in 2010 (in millions of U.S. dollars)

Paper & CEM-1 CEM-3

FR-4 Glass Epoxy

Metal Core


High-Performance

HDI Microvia

IC Substrates

Total Rigid PCBs



Total PCBs

Australia / New Zealand 0 0 7 0 10 0 0 0 17 3 0 3 20China / Hong Kong 850 650 3,200 30 10,500 250 3,670 490 19,640 1,800 650 2,450 22,090India 80 20 140 0 150 2 2 0 394 25 0 25 419Indonesia 65 5 0 0 0 0 0 0 70 0 0 0 70Japan 70 400 600 15 2,300 250 1,500 2,600 7,735 1,000 600 1,600 9,335Malaysia 90 40 50 0 140 2 5 70 397 100 10 110 507Philippines 13 2 30 0 30 0 0 280 355 55 0 55 410Singapore 2 2 26 0 150 1 25 25 231 300 0 300 531South Korea 75 40 400 20 1,475 65 1,000 1,400 4,475 500 1,100 1,600 6,075Taiwan 55 55 500 20 2,000 50 1,300 2,300 6,280 550 150 700 6,980Thailand 70 40 105 0 325 0 2 0 542 650 0 650 1,192Vietnam 3 1 5 0 25 0 41 0 75 207 0 207 282ASIA/PACIFIC TOTAL 1,373 1,255 5,063 85 17,105 620 7,545 7,165 40,211 5,190 2,510 7,700 47,911


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PCB Production in the Asia/Pacific Region (Local Currencies)

Production of PCBs in Asia in 2010 (in millions – local currency)

Paper & CEM-1 CEM-3

FR-4 Glass Epoxy

Metal Core


High-Performance

HDI Microvia

IC Substrates

Total Rigid PCBs



Total PCBs

Australia / New Zealand (AUS$) 0 0 8 0 11 0 0 0 19 3 0 3 22Australia / New Zealand (NZ$) 0 0 10 0 14 0 0 0 24 4 0 4 28China / Hong Kong (Yuan Renminbi) 5,746 4,394 21,632 203 70,979 1,690 24,809 3,312 132,764 12,168 4,394 16,562 149,326China / Hong Kong (HK$) 6,603 5,049 24,859 233 81,567 1,942 28,510 3,806 152,569 13,983 5,049 19,032 171,602India (rupee) 3,657 914 6,400 0 6,857 91 91 0 18,010 1,143 0 1,143 19,153Indonesia (rupiah) 588,596 45,277 0 0 0 0 0 0 633,873 0 0 0 633,873Japan (yen) 6,143 35,100 52,650 1,316 201,825 21,938 131,625 228,150 678,746 87,750 52,650 140,400 819,146Malaysia (ringgit) 289 128 161 0 449 6 16 225 1,274 321 32 353 1,627Philippines (Philippine peso) 584 90 1,348 0 1,348 0 0 12,583 15,953 2,472 0 2,472 18,425Singapore (S$) 3 3 35 0 204 1 34 34 315 409 0 409 724South Korea (won) 86,486 46,126 461,260 23,063 1,700,896 74,955 1,153,150 1,614,410 5,160,346 576,575 1,268,465 1,845,040 7,005,386Taiwan (T$) 1,733 1,733 15,754 630 63,015 1,575 40,960 72,468 197,868 17,329 4,726 22,055 219,924Thailand (baht) 2,205 1,260 3,307 0 10,237 0 63 0 17,072 20,473 0 20,473 37,545Vietnam (dong) 56,773 18,924 94,621 0 473,105 0 775,892 0 1,419,315 3,917,309 0 3,917,309 5,336,624


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Asian PCB Production by Key Countries

China / Hong Kong49%

Japan19%

South Korea11%

Taiwan16%

Other Asia5%

Rigid PCB Production in Asia in 2010

China / Hong Kong32%

Japan21%

South Korea21%

Taiwan9%

Other Asia17%

Flexible Circuit Production in Asia in 2010


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Commentary on Asia Asia’s share of world PCB production is still climbing, and now stands at 87 percent. The booming market for smart phones, which are mostly made in Asia, is driving increased demand for HDI boards, IC substrates, coreless any-layer via boards and laser drilling equipment. In 2010, sales of laser drilling machines increased four-fold, and sales of direct laser imaging systems were up about 250 percent. This growth is primarily due to smart phone manufacturing. Around $3.1 billion in Asian PCB production is being done by U.S. companies and around $2.7 billion of that is in China. This large increase over last year’s estimates is due to TTM’s acquisition of Meadville Group. European and North American PCB companies continued to move more of their production to Asia. Wages in China are going up rapidly and will continue to increase as the labor force stops expanding this year. Labor shortages, especially in the industrial coastal areas, are driving wages up. Just a few years ago, the cost of labor averaged around 3.0 percent of manufacturing cost in China. Today it is 6.5 percent. The average factory worker in Shanghai, who made about $135 per month in 2003, now makes $500 per month. China’s inflation rate is currently 5 percent, but the Chinese government is making serious efforts to control it. GDP growth in China in 2010 was 10.3 percent and the current EIU forecast for 2011 puts it at 9.0 percent this year. There are about 1,150 companies with 1,500 factories making PCBs in China today. It is important to note that the 2010 estimate for China’s PCB production is 45.5 percent higher than the 2009 estimate, primarily due to new sources of information acquired in 2010. In his travels this past year, Dr. Nakahara discovered many small Chinese PCB companies that were previously unknown. This increased IPC’s estimate of China’s PCB production value for 2010. Dr. Nakahara estimates that the actual growth rate from 2009 to 2010 was around 36 percent. The committee believes its previous estimates of China’s PCB production were understated. Dr. Nakahara also believes the committee’s current China PCB production estimate of $22.09 billion is conservative and may be as much as $1 billion higher, due to the many very small PCB operations across this massive country. Much of the new industrial development in China is happening in the interior regions, such as Chengdu, Wuhan, Xi’an and the area on the north side of the Yangtze River. The Chinese government is offering tax incentives for manufacturing plants in the interior, including a five-year tax holiday and a 15 percent tax rate (versus 25 percent in the coastal areas). Many Chinese companies are specializing and developing high-end products. The supplier infrastructure has grown to support them. China is suffering from labor shortages in the coastal areas where most of the big factories are located. These companies have cash resources that are being used to invest in state-of-the-art equipment that requires fewer workers to run it. They are investing in new facilities and R&D, especially for production of high-layer-count boards. Japan was one of the fastest growing major economies in 2010 with 4.0 percent GDP growth. Japanese exporters benefitted from the booming demand in China. Japan’s economic growth slowed dramatically in early 2011, even before the natural disasters struck in March. After the


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earthquake and tsunami, the EIU lowered Japan’s GDP growth forecast for 2011 from 1.6 percent to -0.5 percent, due to the impact of these disasters. The EIU forecasts low growth and low inflation for Japan through 2015. There are about 280 PCB manufacturing plants in Japan, but they tend to be bigger on average than in most other countries. Several large Japanese and Korean PCB facilities are still owned by OEMs, unlike other countries where most PCB manufacturers are independent. More than 60 percent of the output in Southeast Asia (Singapore, Thailand, Malaysia, Vietnam, Philippines and Indonesia) is made by Japanese companies. Dr. Nakahara believes that, in a year or two, the Japanese will account for more than 70 percent. Japan’s PCB output in 2010 grew in value by 2.9 percent nominally, but actually declined 3.6 percent in real terms. As of 2010, Japan’s PCB production was still 15 percent below its 2008 level. About two-thirds of Japanese companies’ global PCB production was in Japan. Worldwide production by Japanese companies in 2010 was $14 billion. Japan is still recognized for its technical leadership, but its internal PCB manufacturing base cannot grow. The manufacturing growth of Japanese companies has been mainly outside of Japan. The same is true for Taiwan. It has reached its internal manufacturing limits and most growth for Taiwanese companies is happening in China. Taiwanese companies produced about $17 billion in PCBs in 2010, of which only 41 percent was in Taiwan. Their production in China was 40 percent greater in value than Taiwanese production in Taiwan. This report looks at production by country where the production is done. Looking at the total output of companies offers a different view and shows the true influence of Japan, Taiwan and China. Total output of Japanese and Taiwanese PCB companies (counting both domestic and offshore) accounts for more than 60 percent of world PCB production. When the domestic and overseas production of Japanese PCB companies is combined, Japanese companies account for more than 25 percent (around $14 billion) of the world’s PCB production. The same is true for Taiwanese companies, which account for about $17 billion or 31 percent of world PCB production, but only 41 percent of Taiwanese companies’ output was produced in Taiwan. About $10 billion of it is done in China and Thailand. About two-thirds of China’s PCB production is from factories owned by non-Chinese companies. Companies based in China / Hong Kong produced about $6.5 billion in PCBs in 2010. Taiwanese companies now produce more PCBs in China than in Taiwan. About 100 Taiwanese companies account for 45.5 percent of all PCB production in China. U.S. companies account for 12.3 percent and Japanese companies contribute 9.1 percent of China’s PCB production. Japan, Korea and Taiwan are now facing the same problem as North America and Europe have faced, with production moving to China and other countries with lower labor costs. Korea is putting more emphasis on IC packaging. IC packaging is expected to be the next big growth area for China with average annual growth rates of 25 percent. Chinese output of IC packaging is expected to exceed $1 billion by 2015. Thailand is still the largest PCB-producing country in Southeast Asia with nearly $1.2 billion in production value in 2010, but IPC’s estimates of Thailand’s PCB production declined slightly in real terms in 2010. The fastest growth in southeast Asian PCB production value in 2010 was seen in Vietnam and the Philippines.


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By category, the highest growth rate in Asian production was seen in rigid-flex, which more than doubled from 2009 to 2010. Strong double-digit growth was also seen in standard multi-layer, FR-4 glass epoxy, IC substrates, HDI/microvia, and metal core boards. China, Japan, Taiwan and Korea have a large and growing share of the world’s HDI PCB production. These countries produced 94 percent of the world’s HDI PCBs in 2010. Over 90 percent of world laminate consumption is in Asia and it is expected to continue growing. Accordingly, sales of chemicals needed for the production of PCBs are also concentrated in Asia, particularly in China. For example, the market for liquid photo-imageable solder resist in China is about 55 times that in North America, according to Dr. Nakahara. He claims that material and equipment makers cannot survive without the China market today. Most Asian currencies strengthened against the U.S. dollar in 2010. Currency fluctuations affect trade. When a country’s currency strengthens against those of its major trading partners, its exports become less attractive.


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PCB Production in Europe (U.S. Dollars)

Shown below is the value of PCB production in the major producing countries of Europe. Figures shown are in U.S. dollars below, and in local currency on the next page. Factoring out the impact of currency fluctuations and inflation, real PCB production value in Europe grew about four percent in 2010.

Production of PCBs in Europe in 2010

(in millions of US dollars)

Paper & CEM-1 CEM-3

FR-4 Glass Epoxy

Metal Core


High-Performance

HDI Microvia

IC Substrates

Total Rigid PCBs



Total PCBs

Austria 26 2 66 2 76 1 34 0 207 3 6 9 216Benelux (a) 1 0 11 0 30 1 6 0 49 3 6 9 58Central Europe (b) 20 1 65 0 26 0 0 0 112 1 2 3 115France 13 9 25 7 92 24 16 0 186 12 27 39 225Germany 30 2 275 24 603 16 81 0 1,031 87 52 139 1,170Italy 7 1 53 0 127 11 19 0 218 13 8 21 239Russia and FSRs (c) 18 5 50 0 120 4 0 0 197 4 2 6 203Scandinavia (d) 2 1 13 0 43 1 21 0 81 0 4 4 85Spain & Portugal 7 3 12 0 32 0 1 0 55 0 0 0 55Switzerland 11 1 26 14 65 22 40 0 179 46 12 58 237Turkey 8 2 9 1 5 0 0 0 25 0 0 0 25United Kingdom & Ireland 8 2 28 0 77 20 28 0 163 10 23 33 196EUROPE TOTAL 151 29 633 48 1,296 100 246 0 2,503 179 142 321 2,824

(a) Belgium, Netherlands and Luxembourg (b) Includes Bulgaria, Czech Republic, Hungary, Poland, Romania, Slovak Republic and Slovenia (c) Former Soviet Republics (FSRs) include Belorussia, Ukraine and Moldova (d) Denmark, Finland, Norway and Sweden


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PCB Production in Europe (Local Currencies)

Production of PCBs in Europe in 2010 (in millions local currency)

Paper & CEM-1 CEM-3

FR-4 Glass Epoxy

Metal Core


High-Performance

HDI Microvia

IC Substrates

Total Rigid PCBs



Total PCBs

Austria (euro) 20 2 50 2 57 1 26 0 156 2 5 7 163Benelux (euro) 1 0 8 0 23 1 5 0 37 2 5 7 44Central Europe (Bulgarian lev) 30 1 96 0 38 0 0 0 165 1 3 4 170Central Europe (Czech koruna) 381 19 1,239 0 496 0 0 0 2,136 19 38 57 2,193Central Europe (Hungarian forint) 4,155 208 13,505 0 5,402 0 0 0 23,270 208 416 623 23,893Central Europe (Polish zloty) 60 3 196 0 78 0 0 0 337 3 6 9 346Central Europe (Romanian new lei) 63 3 206 0 82 0 0 0 355 3 6 10 364Central Europe (euro) 15 1 49 0 20 0 0 0 85 1 2 2 87France (euro) 10 7 19 5 69 18 12 0 140 9 20 29 170Germany (euro) 23 2 208 18 455 12 61 0 778 66 39 105 883Italy (euro) 5 1 40 0 96 8 14 0 165 10 6 16 180Russia & FSRs (Russian rouble) 546 152 1,515 0 3,637 121 0 0 5,971 121 61 182 6,153Scandinavia (euro) 2 1 10 0 32 1 16 0 61 0 3 3 64Scandinavia (Danish krone) 11 6 73 0 242 6 118 0 455 0 22 22 478Scandinavia (Norwegian kroner) 12 6 79 0 260 6 127 0 489 0 24 24 513Scandinavia (Swedish krona) 14 7 94 0 310 7 151 0 583 0 29 29 612Spain & Portugal (euro) 5 2 9 0 24 0 1 0 42 0 0 0 42Switzerland (Swiss franc) 11 1 27 15 68 23 42 0 187 48 13 60 247Turkey (new lira) 12 3 14 2 8 0 0 0 38 0 0 0 38UK & Ireland (British pound) 5 1 18 0 50 13 18 0 106 6 15 21 127UK & Ireland (euro) 6 2 21 0 58 15 21 0 123 8 17 25 148 .


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Commentary on Europe The euro zone economies grew just 1.7 percent in 2010, the year of worldwide economic recovery. Surprisingly strong growth was seen in the first quarter of 2011, however, driven largely by Germany’s strong performance. The EIU forecast for euro zone GDP growth in 2011 is 2.0 percent. Future economic growth in the euro zone will be dampened by fiscal austerity throughout the region and high unemployment, which currently averages 10 percent. Eastern Europe was hit hard by the recession, but exports and industrial output are rebounding. The region’s GDP growth in 2010 was 3.3 percent, but is expected to rise to 3.7 in 2011 and to exceed 4.0 percent through 2015, according to EIU forecasts. Inflation is a problem in Eastern Europe, with a 7.2 percent inflation forecast for 2011. The 2009 World PCB Production Report included an estimate of $51 million for “Other Europe”, which included Estonia, Latvia, Lithuania, Greece, Macedonia, Croatia and Serbia. These countries were not included in this year’s study due to a lack of information and dwindling production. The value of European production of PCBs increased in 2010 by 13.5 percent in U.S. dollars (eliminating the effect of dropping “Other Europe” from the study this year) and 14.4 percent without the effects of currency fluctuations. The difference is due to a 5.0 percent weakening of the euro against the U.S. dollar in 2010. Analysts are predicting that European PCB production will grow 12 to15 percent in 2011. Michael Gasch, IPC’s European expert on the committee, predicts about 15 percent growth in the German-speaking countries (Germany, Austria and Switzerland), which account for 57 % of total European production. The number of PCB production facilities in Europe has declined precipitously from about 1500 in 1990 to fewer than 300 in 2011. Suppliers to the PCB industry in Europe have also dwindled, limiting the supply chain infrastructure in which European PCB manufacturers must exist. Consolidation in the European PCB industry, however, will strengthen the remaining manufacturers’ market power and give them more leverage with customers. The price pressure that customers, especially in the automotive industry, exerted on PCB manufacturers is no longer readily accepted by the PCB industry. The reduced supply base and the need for PCBs made it easier for PCB manufacturers to push through some of the necessary price adjustments. This may not continue but it was a signal that the balance of market power in 2010 had shifted. The main drivers of Europe’s growth for the PCB industry are photovoltaic (PV) energy systems and the automotive industry. European companies, especially in Germany, have been among the pioneers in the PV market. German government subsidies created huge growth in the manufacture of PV inverters, which need robust PCBs for industrial applications. Both the PV and automotive industries are moving a lot of production to Asia, which suggests that the opportunities for PCB manufacturers in Europe will eventually decline. Renewable energies, however, got a boost after the catastrophe in Japan so that this sector will enjoy additional growth and Europe will be able to export its expertise in this field.


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PCB Production in the Middle East and Africa (U.S. Dollars and Local Currencies)

Shown below is the estimated market value of PCB production in the major producing countries of the Middle East and Africa for 2010. Figures shown are in U.S. dollars in the first table and in local currency in the second table. The countries included in each region are those known to be producing PCBs currently.

Production of PCBs in the Middle East and Africa in 2010 (in millions of US dollars)

Paper & CEM-1 CEM-3

FR-4 Glass Epoxy

Metal Core


High-Performance

HDI Microvia

IC Substrates

Total Rigid PCBs



Total PCBs

Africa (a) 3 0 45 0 12 0 0 0 60 0 0 0 60Israel + Middle East (b) 2 1 30 0 60 2 3 4 102 10 35 45 147MIDDLE EAST & AFRICA TOTAL 5 1 75 0 72 2 3 4 162 10 35 45 207

Production of PCBs in the Middle East and Africa in 2010

(in millions local currency)

Paper & CEM-1 CEM-3

FR-4 Glass Epoxy

Metal Core


High-Performance

HDI Microvia

IC Substrates

Total Rigid PCBs



Total PCBs

Africa (Egyptian pound) 17 0 251 0 67 0 0 0 335 0 0 0 335Africa (South African rand) 22 0 329 0 88 0 0 0 438 0 0 0 438Africa (Tunisian dinar) 4 0 64 0 17 0 0 0 85 0 0 0 85Middle East (Iranian rial) 19,853 9,927 297,798 0 595,597 19,853 29,780 39,706 1,012,514 99,266 347,431 446,697 1,459,212Middle East (Israeli new shekel) 7 4 112 0 224 7 11 15 381 37 131 168 549

(a) Africa includes Egypt, South Africa and Tunisia (b) Israel is the main producer in the Middle East. Some production was also documented in Iran in 2010.


19

PCB Production in the Americas (U.S. Dollars and Local Currencies) Shown below is the market value of PCB production in 2010 for the major producing countries of the Americas. Figures shown are in U.S. dollars in the first table and in local currency in the second table.

Production of PCBs in the Americas in 2010 (in millions of US dollars)

Paper & CEM-1 CEM-3

FR-4 Glass Epoxy

Metal Core


High-Performance

HDI Microvia

IC Substrates

Total Rigid PCBs



Total PCBs

Canada 0 1 25 5 180 25 5 0 241 35 15 50 291Mexico 9 1 5 0 3 0 0 0 18 0 0 0 18USA 0 5 280 45 2,100 400 177 30 3,037 200 150 350 3,387NORTH AMERICA TOTAL 9 7 310 50 2,283 425 182 30 3,296 235 165 400 3,696Brazil 15 0 49 0 54 0 1 0 119 1 0 1 120All Others (a) 2 2 5 0 5 0 0 0 14 0 0 0 14OTHER AMERICAS TOTAL 17 2 54 0 59 0 1 0 133 1 0 1 134AMERICAS TOTAL 26 9 364 50 2,342 425 183 30 3,429 236 165 401 3,830

(a) Others include Argentina, Chile, Colombia, Cuba and Venezuela

Production of PCBs in the Americas in 2010 (in millions local currency)

Paper & CEM-1 CEM-3

FR-4 Glass Epoxy

Metal Core


High-Performance

HDI Microvia

IC Substrates

Total Rigid PCBs



Total PCBs

Canada (CA$) 0 1 26 5 185 26 5 0 248 36 15 52 300Mexico (Mexican peso) 114 13 63 0 38 0 0 0 227 0 0 0 227USA (US$)) 0 5 280 45 2,100 400 177 30 3,037 200 150 350 3,387Brazil (Brazilian real) 26 0 86 0 95 0 2 0 209 2 0 2 210All Others (Argentine peso) 8 8 20 0 20 0 0 0 55 0 0 0 55All Others (Chilean peso) 1,002 1,002 2,505 0 2,505 0 0 0 7,015 0 0 0 7,015All Others (Colombian peso) 3,755 3,755 9,387 0 9,387 0 0 0 26,282 0 0 0 26,282All Others (Cuban peso) 44 44 111 0 111 0 0 0 311 0 0 0 311All Others (Venezuelan bolivar) 8,421 8,421 21,054 0 21,054 0 0 0 58,950 0 0 0 58,950


20

Commentary on North America The estimated $3.7 billion in PCBs produced in North America in 2010 represents growth in PCB production of about seven percent in real terms from the prior year. U.S. production increased nearly 10 percent. There were 314 PCB production facilities in North America in 2010, representing a 28 percent decrease from 2009. The number of people employed full time in the U.S. PCB industry has decreased from 95,000 in 2000 to 22,700 in 2010. Continuing industry consolidation has contributed to these trends, as well as movement of production to lower-cost locations. U.S. companies worldwide actually produce about $6.1 billion in PCBs worldwide. That includes almost $3 billion in PCB production abroad. This year’s substantial increase in U.S. overseas production is attributed to acquisitions in China by U.S. companies and other movement of U.S. PCB production overseas, as well as organic growth of the industry in Asia. IPC’s estimates of Canada’s PCB production show a decline of 19 percent in real terms from 2009 to 2010. This is largely due to the ongoing movement of electronics production to Asia. PCB production in Brazil grew by more than 40 percent in real terms in 2010, while production in the rest of Central and South America declined sharply. The growth in U.S. PCB production was driven mainly by the military market, on which many U.S. PCB manufacturers have become very dependent. There is a real possibility that the U.S. military market could shrink in the next few years, which would be a blow to these military PCB suppliers, especially the small firms that have made this their niche market. The committee’s estimates of the size of the military PCB market in North America range from $1.05 billion to $1.23 billion. This represents nearly one-third of the PCB market in the USA, but it is not a protected market. In May 2011, IPC conducted a market analysis for the U.S. Air Force that showed an estimated one-third of all PCBs for U.S. defense or military systems are produced off shore. North American PCB production in 2010 saw a four-fold increase in metal core boards, although it is still a very small segment. Flexible circuit production (not including rigid flex) was also a high-growth segment in North America with a nominal 27 percent increase in production value. As the North American PCB industry recovered from the recession, manufacturing capacity utilization returned to normal levels. During the first quarter of 2011, average capacity utilization for participants in IPC’s monthly PCB Statistical Program was 79 percent for rigid PCBs and 65 percent for flexible circuits. The PCB market in North America is estimated at $3.816 billion in 2010, which is about a three percent increase over IPC’s estimate for 2009. The distinction between PCB market and PCB production is important, especially in regions like North America where the market is generally strong but production continues to be eroded by movement to lower-cost regions. U.S. PCB exports in 2010 totaled about $971 million and PCB imports totaled $1.365 billion, according to data from the U.S. International Trade Commission. IPC’s monthly PCB Statistical Program reveals what is happening in the market, as it tracks PCB orders and sales in North America. Sales growth began to turn positive in the first half of 2010. Year-on-year growth rates continued to climb, reaching their peak in August for rigid PCBs and in


21

December for flexible circuits. Sales growth rates for the year 2010 over 2009 were 18 percent for rigid PCBs and 16 percent for flexible circuits. Rigid PCB orders grew in double-digit rates until September 2010 before leveling out and ending the year with a 21 percent increase over 2009. Flexible circuit orders ended the year at 22 percent for 2010 over 2009. The book-to-bill ratio for all PCBs anticipated this trend, reaching a high for the year of 1.13 in May 2010 followed by a steady decline to 0.96 in December. This trend indicated the slowdown in North American sales growth that the industry has experienced the first half of 2011. When the book-to-bill ratio is above parity (1.0), it indicates that PCB demand is ahead of supply, which is an indicator of sales growth for the next two to six months.


22

Special Report on HDI/Microvia Boards: Trends, Applications and Forecasts

Trends in HDI Production

Based on data collected by IPC for this report, worldwide production of HDI boards (excluding microvia IC substrates and flex/rigid-flex) grew 22.2 percent in 2010, based on nominal value in U.S. dollars. This was the biggest growth spurt for this category since 2003. China’s HDI production grew 44.5 percent in 2010, followed by Taiwan with 34.7 percent growth. Europe produced 8.8 percent more in 2010, and North America’s HDI growth rate was 4.0. Only Japan declined in HDI production in 2010, by 5 percent.

$2,377 $2,410

$3,820 $4,444 $5,261 $5,804 $5,956 $6,476 $6,527

$7,977

$-

$2,000

$4,000

$6,000

$8,000

$10,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Mill

ioni

s of U

.S D

olla

rs

Trend in Worldwide HDI Production

$-

$2,000

$4,000

$6,000

$8,000

$10,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Geographic Trends in Production of HDI Boards

Rest of World

North America

Europe

South Korea

Taiwan

Japan

Source: IPC World PCB Production Reports 2001-2010


23

Global production in 2010, by the definition used in this report, totaled nearly $8 billion, but the total HDI/microvia market, including IC substrates, flex and rigid-flex, is estimated at around $12.5 billion. Using the more comprehensive definition that includes IC substrates (flip-chip), multilayer flexible printed circuits and rigid-flex yields a much higher figure. The following data was contributed by Dr. Hayao Nakahara of N.T. Information. It shows estimates of total HDI/microvia production, including IC substrates, multilayer flex and rigid flex. Ninety percent of the rigid-flex circuits produced today have build-up structure.

World HDI/Microvia Board* Production by Region (US$ at variable exchange rates)

N.T. Information Ltd.

* Microvia boards include regular microvia multilayer boards, flip-chip substrates and multilayer flexible printed circuits and rigid-flex circuits. According to Dr. Nakahara, Japan is still the number one HDI/microvia producer because Japanese companies produce microvia boards in China and southeast Asian countries. Japanese companies produced 35 percent of the world’s microvia boards, followed by Taiwan (29 percent) and South Korea (15 percent). Together companies from these three countries produced 79 percent of the world’s microvia board production.

Region 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Japan 2,080 2,140 2,330 2,316 2,386 3,484 4,195 3,920 3,665 3,750China 120 275 540 847 940 1,575 1,930 2,350 2,480 3,740Taiwan 545 670 770 1,063 1,170 1,480 1,935 2,050 1,950 2,422South Korea 290 450 750 1,036 1,150 1,210 1,365 1,405 1,325 1,820ASEAN 60 90 150 164 265 310 379 355 320 353Europe 370 395 430 484 427 420 394 345 280 235North America 150 130 130 140 160 160 170 175 170 200Total 3,615 4,150 5,100 6,050 6,498 8,639 10,368 10,600 10,190 12,520


24

HDI/Microvia Board Market by Application – 2010 and 2015 Forecast The following HDI/microvia board market analysis and forecast was provided courtesy of Prismark Partners (www.prismark.com). The forecast is subject to change. This analysis does not include the microvia associated with the fabrication of IC substrates or flex/multilayer flex or rigid-flex. There is a substantial additional value associated with the use of microvia (laser drilling) technology in flex and IC substrate fabrication.

N511.020KK-mic area

2010 2015FCAAGR 2010 - 2015

10.0%

Cell Phones7.06M m 61%2

Cell Phones9.48M m 51%2

Other (MP3s, Portable Games, etc.)

0.50M m 4%2

Other (MP3s, Portable Games, etc.)

0.76M m 4%2

Tablets/UMPCs0.29M m 2%

Notebook purchase0.72M m 6%

2

Tablets/UMPCs2.47M m 13%

Notebook PCs1.58M m 8%

2

Camcorders/Digital Cameras0.99M m 9%2

Camcorders/Digital Cameras1.39M m 7%2

TOTAL: 18.68M m2TOTAL: 11.60M m2

Automotive0.45M m 4%2

Automotive0.66M m 4%2

Datacom/ Telecom/EDP

1.59M m 14%

2

2

Datacom/ Telecom/EDP

2.35M m 13%

2

2

Cell PhonesCamcorders/Digital Cameras

AutomotiveOther (MP3s, Portable Games)All Applications

Notebook purchaseTablets (UMPCs)Datacom/Telecom/EDP

6.1%7.0%

16.9%53.9%

8.%8.0%8.5%

10.0%

PCB Applications Area Growth CAAGR 2010-2015

MICROVIA BOARD MARKET BY AREA(Excludes IC Substrates)

http://www.prismark.com/


25

Special Report on the Metal Clad PCB Market

Some analysts are predicting high growth in the market for metal clad PCBs. The world market for metal core boards was estimated at $300 million in 2010. The committee predicts that it will be over $1 billion within the next two years. Taiwan, Japan, South Korea and China are the major producers of metal-core boards. The major driver is the growth in light-emitting diode (LED) applications. The analysts believe this represents the biggest growth opportunity for the PCB industry today. Dr. Nakahara believes aluminum-based metal core board production alone may reach $500 million in 2011 to accommodate the market for LED lamps. Thick copper boards are also used for automotive applications where higher power electronic controls are needed for electric cars. This market is growing worldwide. According to Prismark Partners, there is renewed interest in metal clad PCBs that address the thermal design challenges within the rapidly growing application of LED lighting, as well as in semiconductor power devices for alternative energy systems and energy management. There are many solutions including the use of conventional heat sinks attached to a conventional PCB. Metal clad laminate PCBs, also known as insulated metal substrates (IMS), offer designers the option to embed the thermal channel within the PCB; saving space and improving the thermal path efficiency for local heat transfer. In LED lighting, the diode life is greatly reduced at higher operating temperatures. Spreading the heat away from the LED by using simple one- or two-sided interconnections bonded onto aluminum or other metallic substrate can extend the lamp life. This application is a high volume opportunity as LED lighting systems become more affordable. In power device designs, IMS PCBs can provide a rigid base for mounting as well as an giving improved thermal performance compared to PCB’s using conventional FR-4 laminates with thin copper foils.


26

APPENDICES


27

PCB Product Category Definitions

Paper and CEM-1 – Single- and double-sided paper phenolic or paper epoxy XXXP, FR1, FR2, FR3, and CEM-1.

CEM-3 – All single- and double-sided CEM-3.

Glass Epoxy – Includes all single- and double-sided FR-4.

Metal Core - PCBs (typically one layer) made primarily with an insulated metal substrate instead of fiberglass, with primary functions of heat transfer and thermal management. Does not including PCBs with bonded heat sinks.

Standard Multilayer – All rigid PCBs with more than 2 layers made with FR-4 epoxy (any Tg), including metal core and special types; excluding HDI microvia and IC substrates.

High-Performance – All non-epoxy (non-FR-4) rigid boards, including PTFE, rigid polyimide, APPE, Cyanate Ester, BT and GETEK; includes 2-sided high-performance and boards made with exotic materials such as Teflon and blended resins with unusual characteristics; excludes paper and composite (CEM).

HDI Microvia (also called build-up board, sequential build-up and high-density interconnect) – All PCBs made with surface blind vias, including layer pair materials such as ALIVH, B2IT and PALAP; and including buried vias; but excluding microvia IC substrates and rigid flex boards.

IC Substrates – All organic resin based IC die package substrates, rigid and flexible, and MCM-L substrates, regardless of layer counts.

Flexible Circuits – All flexible circuits (single-sided, double-sided and multilayer) made with polyimide, polyester, PEN, LCP etc., excluding flex IC substrates, flex suspension assemblies and rigid flex. Flexible circuit estimates reflect bare circuits only (no assembly) to the best of the committee's ability to estimate this breakdown.

Rigid Flex Circuits – All rigid flex, including multilayer flex containing rigid materials and rigid flex boards with HDI/microvia structure.


28

Exchange Rates

Exchange rates are a major factor in analyzing global industry data. Although exchange rates fluctuate during the year (sometimes dramatically), to maintain consistency in analysis, it is necessary to select and use one set of exchange rates. The exchange rates used throughout this report are averages for 2010 based on daily inter-bank exchange rates. The source is www.oanda.com/convert/fxhistory The following table shows the average exchange rates from U.S. dollars for all local currencies used in this analysis ($1 US equals the local currency amounts shown below). Average 2009 exchange rates and the percent change in 2010 are also shown here to illustrate the impact of fluctuation in the rates. When the change is negative, it means the currency strengthened against the U.S. dollar, making the nominal growth rates higher than real growth rates. A strengthening U.S. dollar, reflected by a positive rate of change, makes nominal growth rates lower than real growth rates.

2009 Average

Exchange Rate (=1.00 USD)

2010 Average Exchange Rate

(=1.00 USD)Currency

(ISO Code) % ChangeASIA/PACIFIC Australia 1.28 1.09 AUD -14.9%

China 6.84 6.76 CNY -1.2%Hong Kong 7.75 7.77 HKD 0.2%India 48.85 45.71 INR -6.4%Indonesia 10,428.88 9,055.33 IDR -13.2%Japan 93.62 87.75 JPY -6.3%Malaysia 3.53 3.21 MYR -9.1%New Zealand 1.60 1.39 NZD -13.3%Philippines 47.73 44.94 PHP -5.9%Singapore 1.45 1.36 SGD -6.3%South Korea 1,279.08 1,153.15 KRW -9.8%Taiwan 33.07 31.51 TWD -4.7%Thailand 34.57 31.50 THB -8.9%Vietnam 18,006.81 18,924.20 VND 5.1%

(table continues on next page)

http://www.oanda.com/convert/fxhistory


29


(=1.00 USD)


(=1.00 USD)Currency

(ISO Code) % Change EUROPE Austria 0.72 0.75 EUR 5.0%

Belgium 0.72 0.75 EUR 5.0%Bulgaria 1.41 1.48 GBN 5.0%Czech Republic 19.09 19.07 CZK -0.1%Denmark 5.36 5.62 DKK 5.0%Finland 0.72 0.75 EUR 5.0%France 0.72 0.75 EUR 5.0%Germany 0.72 0.75 EUR 5.0%Hungary 202.37 207.76 HUF 2.7%Ireland 0.72 0.75 EUR 5.0%Italy 0.72 0.75 EUR 5.0%Netherlands 0.72 0.75 EUR 5.0%Norway 6.30 6.04 NOK -4.1%Poland 3.12 3.01 PLN -3.6%Portugal 0.72 0.75 EUR 5.0%Romania 3.04 3.17 RON 4.2%Russia 31.82 30.31 RUB -4.7%Slovakia 0.78 0.75 EUR -2.7%Spain 0.72 0.75 EUR 5.0%Sweden 7.65 7.20 SEK -5.9%Switzerland 1.09 1.04 CHF -4.0%Turkey 1.56 1.51 TRY -3.3%United Kingdom 0.64 0.65 GBP 1.0%

MIDDLE EAST Egypt 5.51 5.59 EGP 1.5%& AFRICA Iran 9,706.63 9,926.61 IRR 2.3%

Israel 3.92 3.73 ILS -4.9%South Africa 8.40 7.30 ZAR -13.1%Tunisia 1.33 1.42 TND 6.9%

(table continues on next page)


30


(=1.00 USD)


(=1.00 USD)Currency

(ISO Code) % Change THE AMERICAS Canada 1.14 1.03 CAD -9.8%

Mexico 13.52 12.62 MXN -6.6%USA 1.00 1.00 USD 0.0%Argentina 3.72 3.90 ARS 4.9%Brazil 1.99 1.75 BRL -11.9%Chile 549.43 501.04 CLP -8.8%Colombia 2,129.64 1,877.32 COP -11.8%Cuba 22.22 22.22 CUP 0.0%Venezuela 2,142.67 4,210.73 VEB 96.5%


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Historical Trends in Worldwide PCB Production The following graphs show the value of worldwide PCB production as published annually by IPC in this world PCB report. Year-to-year comparisons should be made with caution. Dollar amounts are nominal and not adjusted to factor out inflation. Also, currency fluctuations affect the results, as well as changing research methodologies and sources. The recession was short-lived in Asia, with recovery starting in the second half of 2009. For the whole world, 2010 was the strong recovery year with an estimated 24 percent growth in PCB production value (in nominal dollars). In constant 2009 dollars, the growth rate was 20 percent.

$6,465 $6,734

$7,437 $10,179

$11,682

$11,071 $12,348

$18,117 $19,946

$20,185 $21,500

$18,974 $18,212

$20,842 $22,837

$26,375 $29,703

$32,559 $34,288

$36,058 $42,642

$33,237 $32,109 $34,485

$38,753 $42,424

$47,626 $50,269

$50,786

$44,155

$54,772

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

Mill

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Worldwide PCB Production Trend(in nominal U.S. dollars - millions)

Growth Rates 4% 10% 37% 15% -5% 12% 47% 10% 1% 7% -12% -4% 14%10% 16% 13% 10% 5% 5% 18% -22% -3% 7% 12% 9% 12% 6% 1% -13% 24%


32

Growing Proportion of Flexible Circuits

Flexible circuits have grown steadily as a percentage of total PCB production. In 2010, flex and rigid-flex made up 15.5 percent of worldwide PCB production value. Flex is 16.1 percent of Asia’s PCB production, 11.4% of Europe’s production, and 10.8 of North American production.

$6,200 $6,409 $7,042

$9,731 $11,198

$10,502 $11,553

$17,028 $18,800

$19,039 $20,247

$17,791

$17,076 $19,494

$21,187 $24,346

$27,184 $29,727

$31,453 $32,624

$38,756

$29,561

$28,510 $29,161

$32,308 $35,194

$40,282 $42,023

$42,738

$37,400

$46,305

$265 $325 $395

$448 $484 $569

$795 $1,089

$1,146 $1,146

$1,253

$1,183 $1,136

$1,348 $1,650

$2,029 $2,519

$2,832 $2,835

$3,434

$3,886

$3,676 $3,599

$5,324 $6,445

$7,231 $7,344

$8,246 $8,048

$6,755

$8,467

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

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Trends in Worldwide Production of Rigid PCBs and Flexible Circuits (in nominal U.S. dollars - millions)

Rigid Flex


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Trends in Regional Shares of PCB Production (from IPC World PCB Reports 1980-2010)

World (millions $US) China & Hong Kong* Japan USA Europe* Rest of World*1980 6,465$ 19.6% 40.3% 19.9% 20.2%1981 6,805$ 21.6% 39.9% 18.5% 20.0%1982 7,437$ 22.1% 39.3% 20.2% 18.4%1983 10,179$ 21.1% 39.9% 16.5% 22.4%1984 11,682$ 22.9% 42.0% 14.7% 20.4%1985 11,071$ 24.7% 36.3% 16.1% 22.8%1986 12,348$ 30.2% 32.2% 16.3% 21.3%1987 18,117$ 30.4% 28.1% 18.3% 23.2%1988 19,946$ 29.2% 29.5% 15.1% 26.2%1989 20,185$ 31.3% 27.7% 15.5% 25.5%1990 21,500$ 33.5% 25.3% 18.4% 22.9%1991 18,974$ 34.4% 27.0% 17.0% 21.6%1992 18,212$ 30.3% 29.2% 15.6% 24.9%1993 20,842$ 29.4% 26.2% 17.6% 26.8%1994 22,837$ 28.4% 28.1% 18.1% 25.4%1995 26,375$ 28.1% 27.1% 17.9% 26.9%1996 29,703$ 27.0% 26.6% 20.5% 26.0%1997 32,559$ 26.4% 26.4% 20.1% 27.0%1998 34,288$ 6.3% 26.1% 25.1% 17.6% 25.0%1999 36,058$ 6.8% 31.0% 25.9% 13.6% 22.7%2000 42,642$ 8.6% 27.9% 25.6% 13.8% 24.1%2001 33,237$ 10.8% 25.9% 21.6% 16.1% 25.6%2002 32,109$ 12.8% 26.2% 18.0% 12.7% 30.2%2003 34,485$ 17.4% 28.5% 14.6% 10.3% 29.2%2004 38,753$ 20.8% 26.1% 11.2% 10.1% 31.8%2005 42,424$ 23.7% 24.6% 10.3% 8.5% 32.9%2006 47,626$ 25.5% 23.6% 9.2% 8.0% 33.7%2007 50,269$ 27.9% 23.0% 8.0% 7.7% 33.4%2008 50,786$ 31.4% 22.5% 7.4% 7.2% 31.5%2009 44,155$ 34.4% 20.5% 7.0% 5.7% 32.3%2010 54,772$ 40.3% 17.0% 6.2% 5.2% 31.3%

* In 1997, Europe was redefined to include Central Europe and the Former Soviet Union, which were previously included in Rest of World. China & Hong Kong were included in Rest of World before 1998.


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The following graph depicts the trends in PCB production of the major PCB producing countries and regions and reflects the data in the preceding table.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Trends in Shares of Worldwide PCB Production

China & Hong Kong Japan USA Europe Rest of World

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