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Motherboard PCB costs are on the rise

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Posted May 23, 2008 by admin in CPU & Motherboards

PCB makers are being exposed to aggravated pressure from rising materials and labor costs in China. ASPs for copper clad laminate (CCL), one of the key components in PCBs, have grown 7% through the second quarter, according the sources. Whether further price adjustments will be seen in June is uncertain as yet, they noted.

Of the leading CCL makers, Iteq noted that there is a two-month gap between copper costs and CCL ASPs, meaning that any increase in copper pricing will be materialize as an ASP adjustment in corresponding CCL prices two months later. The company said a price adjustment seems unlikely in June, but a possible adjustment may be made in the third quarter.

In addition to rising material costs, the limited number of motherboard PCB suppliers is also a key reason for the possible price adjustment, the sources said. Since ASPs for motherboard PCBs are among the lowest in the four-layer PCB segment, limited gross margins have prompted most Taiwan players to quit the market.

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