Taiwan’s Top PCB Maker Zhen Ding Plans Record 2020 Capex Spending

Taiwan’s top PCB maker Zhen Ding Technology (ZDT) will budget a record high capex for 2020 and expects its revenues for the year to grow significantly from 2019 on stronger shipments of diverse product lines, according to company chairman Charles Shen.

ZDT’s board of directors has yet to finalize the 2020 capex figure, but Shen stressed the company will certainly make largest-ever investment next year to support capacity expansions at plants in China and India. He said the firm’s second plant in Shenzhen will start commercial run in March, its production bases in Jiangsu and Hebei provinces will ready new capacities and its newly established backend module plant in India will also become operational in 2020.

Shen said that revenues from flexible boards, now contributing 80% of ZDT’s total revenues, will grow further in 2020 on handset spec upgrades. Antenna-use flexible boards will see particularly strong shipments, and the company is developing a variety of handset antenna products in cooperation with 12 clients for shipment next year, he said. The company now registers the highest share, at 25%, of the global flexible board market. – DigiTimes


The business cycle in the global electronics industry generates a high impact on
the PCB industry. The importance of PCBs in the electronics industry and the rapid development of electronics equipment and systems for modern social communication,
digital computing, and entertainment applications will lead to continuous
growth in the demand for various PCBs.  According to Prismark’s forecasts, the global PCB output grew from US$48.3 billion in 2008 to US$62.3 billion in 2018 with a growth rate of 29%. It projected a growth rate of 2.1% in 2019 and various PCB industries will grow at a compound annual growth rate of 3.7% from 2018 to 2023.

Source: Zhen Ding Technology Annual Report