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Unimicron Expands Taiwan Capacity
April 29, 2008 |Estimated reading time: Less than a minute
TAIPEI, Taiwan Unimicron Technology Corp. will spend approximately NT$4 billion ($131.6 million U.S.) on expanding its Taiwan PCB fabrication plant's capacity, according to the China Economic News Service (CENS). Unimicron cited environmental and tax laws in China as pressures undermining expansion on the mainland.
Unimicron has decided to raise its investment in Taiwan starting this year to account for over 60% of its capital expense budget of NT$6 billion ($197.4 million U.S.) for 2008, improving production capacity of both substrates and general PCBs, reports Steve Chuang, CENS. Depending on the second half of 2008, Unimicron will consider boosting its maximum single-month capacity of flip-chip substrates to between 8 and 10 million units.
Unimicron had invested in capacity expansion in China more than in Taiwan over the past five years. However, the situation reversed when the company decided to raise investment in Taiwan to up to 66% of 2008 funds. Weak market demand for consumer PCBs has caused a low capacity utilization rate of its plants, according to Unimicron. In Q'02 2008, orders for PCBs used in base stations will increase, and those for notebook PCs and mobile phones will grow slightly. Price hikes in copper-clad laminates (CCLs) and foreign exchange rates also may affect profits, CENS reports.