Japanese printed circuit board (PCB) trends for 2007

By Dominique Numakura

The Japanese Ministry of Economy, Trading and Industry (METI) released printed wiring board (PWB) production data for December 2007. This release of data provides a production snapshot for 2007, allowing some predictions for 2008.

Total revenue for 2007 from the Japanese printed circuit industry was 999 billion yen (US$9.5 billion), representing a 3.8% increase from 2006.

Included in this revenue stream is overseas production from Japanese circuit board manufacturers. The statistical data provided from the METI may include only 70% of industry, therefore, actual revenue could top US$1.3 billion.

The PWB industry enjoyed double-digit growth rates for the first half of 2007 compared to the same period in 2006; however, demand softened during the second half of the year.

Total production volume during 2007 stood at 25.24 million square meters, a 1.2% increase compared to the previous year.

Production numbers were weak during the first three quarters of the year, posting negatively comparing year-over-year; however, a strong rebound during the fourth quarter helped push production totals positive.

This growth can be attributed to the average unit price dropping significantly during the year. I believe Japanese PWB manufacturers focused on such orders with higher margins during the first half of the year to sustain profitability; however, price reductions were necessary during the second half of the year in order to help keep manufacturing lines humming once things slowed down.

This seemed to be a general market trend within the Japanese PWB industry during 2007. Some observations from individual product segments did deviate from this norm.

Total 2007 revenue from the rigid circuit boards segment came in at 619.9 billion yen, a 1.9% increase from the previous year, while total volume declined 0.7%.

The main product for this segment included multi-layer boards. This product line enjoyed double digit growth during the first half; however, things slowed down in the second half. The build-up of boards also performed well during the second half of the year, growing at a double digit rate; however, things are a little shaky.

A serious concern for most segments is the incredible decline during the latter part of the year. This is a trend shared by the entire industry.