Dongzhongming, a senior analyst at IEK, thinks that the PCB industry in Thailand has the best performance in terms of ASEAN. Both PCB imports and exports exceed US $1billion. From the perspective of PCB exporting countries, China accounts for 42%, which is the largest, followed by Japan, which accounts for 20%, mainly for Automotive components.
At present, Thailand's total automobile output is close to 2million, and it is the largest automobile producer in ASEAN. It is estimated that the number of automobile exports will reach 1.2 million from 2017, accounting for 60% of the production. Among the world's top 100 automobile parts and components manufacturers, 57 have set up factories in Thailand, and 28 Japanese automobile parts and components factories are produced in Thailand. It can be seen that Japanese circuit board factories have a deep layout in Thailand.
Although the average wage of ASEAN has been growing year by year, compared with China, ASEAN still has the advantage of low labor cost. It is the third largest labor supply market in the world after China and India. In addition, it has the advantages of market opportunities, such as 600million consumption potential, 2.4 trillion US dollars of economic scale and gradually complete infrastructure. It can quickly replicate the successful model of the mainland.
Kangshude, chairman of the general association of foreign businessmen in Thailand (jfct), said that Thailand has a sound infrastructure and ranks as the hub of ASEAN. The Thai government currently promotes the "Eastern Economic Corridor" (EEC) policy and hopes to link it with the cross regional projects of China's "the Belt and Road". The EEC's goal is to invest about US $44billion from this year to 2021 to expand airports and port facilities and promote industrial modernization. Kangshude mentioned that the industrial chain of Thailand's manufacturing industry is complete. Major brand customers from the United States and Japan have production bases in Thailand, which is the first choice for investment in Southeast Asia. Now, in order to face industrial transformation, the Thai government has also put forward the Thai industry 4.0 policy, hoping to promote industrial upgrading with smart factories, smart cities and smart people.
Kang Shude further explained that in the past, he wanted to invest in Thailand in the short term to seize the opportunity to exchange small money for big capital. Now, with the improvement of the investment environment, in addition to the above-mentioned public facilities construction, transparent economic and trade policy incentives, such as the 8-year exemption and 5-year halving of incentive investment, have turned investing in Thailand into a long-term sustainable operation. In the face of the rapidly changing business environment in the future, chairman Kang called for the inevitable trend of globalization, and Taiwan must go out.
Zhong Ming said that Vietnam's PCB export was only 500million US dollars, compared with the PCB import of nearly 2billion US dollars. However, South Korea has a deep operation in Vietnam, and its production settlements are mainly North Vietnam, mainly driven by Samsung. Its investment locations include Beining Province, Taiyuan province and Ho Chi Minh City. Throughout the evaluation of Vietnam's investment environment, analysts Dong said that although Taiwan's PCB industry went to Vietnam for investigation 10 years ago, it failed because of insufficient infrastructure, labor quality and lack of leading industry leadership. However, at present, Vietnam's infrastructure is relatively complete, and after the successive layout of large international manufacturers such as Samsung and Hon Hai in Vietnam, it is expected to drive the demand for PCB in Vietnam.
Bhflex is the seventh largest circuit board factory in Korea. Its main products are HDI, soft board and soft hard composite board. It has production bases in Korea, Vietnam and China. The president of bhflex is also Mr. Hong, President of KPCA (Korea circuit circuit circuit industry association). Mr. Hong said that Samsung is the largest foreign-funded enterprise in Vietnam. Vietnam produces more than 200million mobile phones, accounting for more than 50% of Samsung's global mobile phone production. Therefore, the upstream and downstream industrial chain of Korean manufacturing in Vietnam is complete.
Mr. Hong said that in order to produce the display used by apple, all Vietnamese factories are in the process of catching up. Facing the prospect of FPC Industry, Mr. Hong said that FPC will be more and more used in batteries, because it is to prevent excessive current, overheated batteries and other reasons. He also said that a lot of manpower will be used in the rear assembly of FPC. Therefore, most overseas factories of the rear production process of Korean soft board factories are located in China, Vietnam and other countries for assembly processing, Bhflex is one of the few board factories that invest in the whole process in Vietnam. Finally, Mr. Hong said that fingerprint identification module is a potential emerging industry, which will be paid attention to in the future or in a sustainable way.
Dongzhongming pointed out that the current import and export scale of circuit boards in India is not high. In terms of exporting countries, Austria is the largest, accounting for 31%, mainly because at&s has set up factories in India.
The main PCB factories in India are concentrated in the western coast. There are about hundreds of small and medium-sized PCB factories with small output value. However, since India has domestic independent brands, such as micromax, karbonn, lave and Intex, it is estimated that they will drive the PCB industry by 2016 and following the Indian manufacturing policy. At present, Samsung has set up factories in India since 2006 to produce smart phones Lenovo and Motorola also began to set up a 40000 square foot smart phone base in Chennai. Other Chinese brand manufacturers such as Xiaomi, Huawei, Foxconn and Wistron in Taiwan also said they would set up factories in India.
Qdos flexcircuit, director Mr. Suresh said that he paid attention to the estimation of the demand of the Indian electronic market. In the next three years, semiconductor design, high-tech manufacturing, it systems and hardware equipment, export and telecommunications products and equipment will grow significantly. Among them, the demand for electronic products and equipment is the highest, reaching US $153billion by 2020.
According to qdos data, India's demand for PCB will reach US $6.1 billion by 2020, with rapid growth in automobile and smart phone manufacturing. Mr. Suresh also said that 60% of the PCB manufacturers in the Indian market are small and medium-sized enterprises. Although the domestic human resources are sufficient, the PCB supply chain is incomplete, and most of them rely on Taiwan and China's imports. Although this is a good opportunity, it is also worth discussing in depth how Taiwanese businessmen assess risks and make accurate investments.
Zhong Ming said that the exporting and importing countries of Indonesian PCBs are mainly Singapore manufacturers, accounting for 80% and 26% respectively. At present, in addition to Mektec, the local Japanese board factories in Indonesia still mainly produce traditional single / double or low-level multilayer boards, mainly for the circuit boards produced by Japanese electronic appliances in Southeast Asia. Further analysis is made through the data of Indonesian mobile phone import and sales, From 2013 to 2016, the import of mobile phones decreased year by year. It can be seen that Indonesia's domestic production increased year by year, which can also drive the demand for circuit boards.
Throughout the investment evaluation in Indonesia, under the policy of increasing the proportion of localized mobile phone manufacturing in Indonesia, electronic manufacturers will play a role in driving the development of PCB industry. In terms of investment experience sharing, pt Sintra sinarindoelektrik, President Director Ms. Hwang said that the important keys to setting up a factory in Indonesia are the certification of the Indonesian version of ISO18001 (OHSAS), the assistance of the Indonesian consulting company, and the qualification certification of the local trade union. If the factory has more than 100 employees, they need to join the local trade union organization.
Ms. Hwang finally said that there are millions of data on the market to estimate Indonesia's future economic development, and only a few of them are truly accurate. It is suggested that Taiwanese businessmen who want to invest in Indonesia should pay a field visit and make a comprehensive understanding of the market, so as to win the next move in the deployment.
