Unitech Printed Circuit Board reported to venture into solar cell manufacturing
May 17, 2007 /source & copyright: CENS
http://www.emsnow.com/npps/story.cfm?id=26717&pg=story
Unitech Printed Circuit Board (UPCB) Corp. will likely venture into manufacturing of solar cells amid weak demands as a whole for printed circuit boards from handset makers, according to solar-cell equipment suppliers. UPCB, COMPEQ Manufacturing Corp., WUS Printed Circuit Co., Ltd. and Unimicron Technology Corp. are the world’s top four suppliers of printed circuit boards for mobile phones, commanding a combined half of the world market. Last quarter, lukewarm sales in Motorola adversely affected sales of the four Taiwanese board suppliers. However, UPCB still made NT$1.12 per share after tax thanks to cost-efficient measures.
Solar-cell equipment suppliers pointed out that UPCB had been assessing the business for a while and organized a solar-technology team within it. In addition, the company, they added, had approached some equipment suppliers. Equipment suppliers said the PCB supplier was evaluating equipment suppliers including OTB, Centrotherm, Schmid, and Roth & Rau. OTB is a Netherlands supplier while the other three are German suppliers.
Insiders pointed out that UPCB’s first solar-cell production line would enter into pilot production by the end of this year and volume production next year. This line is estimated to add NT$3 billion (US$90 million at US$:NT$33) to the company’s annual revenue should it begins running at full capacity, a sum equating to 30% of its annual revenue.
Once the company begins producing solar cells, it will be the second of its kind in Taiwan to diversify into the production. Unimicron Technology, an affiliate of chipmaker United Microelectronics Corp. (UMC), has begun the production. Taiwanese industry watchers pointed out PCB makers tend to enter solar-cell turf because the part similarity between PCB and solar-cell manufacturing processes. In addition, shrunk profits in handset PCB manufacturing are another momentum driving PCB makers to locate profitable business.
However, COMPEQ has denied the reports.