Taiwan's APCB Moves Printed Circuit Board Assembly to Mainland Subsidiary Amid Challenges

Taiwan's APCB Shifts Production to Mainland

Taiwan-based printed circuit board (PCB) maker APCB expects to discontinue production in the island by the end of the year and lay off hundreds of employees, as the company shifts manufacturing to a subsidiary in mainland China.

Production in Taiwan will cease from December 25, following three consecutive years of losses for APCB's plants on the island amid a weak consumer electronics industry and rising raw material costs, the company said in a filing to the Taiwan Stock Exchange.

Impact on Workforce and Operations

In a press conference, APCB chief financial officer Tsai Cheng-hung stated that the company will retain some personnel in research and development as well as sales in Taiwan, while all orders would be filled by its plant in Kunshan, a city in eastern Jiangsu province.

APCB's manufacturing overhaul will involve the dismissal of about 360 employees, while roughly 50 staff will continue to work on the island, according to a report by Taiwan's Central News Agency.

Market Responses and Strategic Shifts

• Shares of APCB in Taiwan fell almost 10 percent as a result of the announcement.
• APCB's Kunshan operation, where nearly 1,800 employees work, is larger than its other manufacturing sites.
• The facility in Thailand, with over 1,000 workers, has already been sold to a mainland Chinese rival.

This shift in APCB's production strategy highlights the significant role that mainland China continues to play in the global electronics supply chain, despite US trade sanctions and recent efforts by some firms to diversify manufacturing to other Asian countries such as India.

Other major PCB producers in Taiwan have also intensified investments in mainland China and Southeast Asia. For instance, Zhen Ding Tech Group announced a 700-million-yuan (US$99 million) program for expanding production in Shenzhen and developing a new plant in Thailand.

APCB's products are used across various sectors, including computers, consumer electronics, communications, and automotive applications. Its main customers span the mainland, Taiwan, South Korea, the US, and Europe.

While the largest PCB suppliers are from Taiwan, most of their operations are based on the mainland, accounting for 65.6 percent of total output in Q4 2023. Taiwan and other Southeast Asian locations represent 31.7 and 2.7 percent, respectively, according to the Taiwan Printed Circuit Association.