Taiwan-based motherboard makers have reportedly reduced their July and August PCB orders by about 30%.

Affected by weakening demand in Europe and the US, while shipments in China did not grow as well as expected, and despite Taiwan-based motherboard makers having all reportedly achieved strong performance in the second quarter, the players still reduced their PCB orders from a monthly average of about 2.8 million units in May and June to only 1.95 million units in July and August.

Facing declining demand for PCBs, makers, which were already set to raise PCB prices to reflect their increasing upstream material costs, are unlikely to do so, and the situation may even affect their sales in the third quarter.

Sources from motherboard makers pointed out that they were optimistic about demand from China's tier-4 to -6 cities in the third quarter, but due to a significant demand drop in tier-1 and -2 cities, overall shipment growth in China may only reach around 5-10% in 2011, which will not be able to fully cover the large shipment gap created by the dropping demand in the US and Europe.

By: DocMemory
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