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Leading PCB Makers Beef Up Production Lines Of Boards For Mobile Phones

By Joo Sang-don

October 08, 2004 - In line with an increasing demand from major mobile phone manufacturers, leading printed circuit board (PCB) makers, including Samsung Electro-mechanics and LG Electronics, began installing additional production lines of build-up boards for mobile phones.

Industry sources said yesterday that big three mobile phone makers in Korea, Samsung Electronics, LG Electronics and Pantech & Curitel, plan to expand next year production of mobile handsets by up to 50% over this year.

Industry observers see the aggressive facility investments by these PCB makers as part of their strategies to grab stabilized leadership in the market by enhancing price competitiveness.

Samsung Electro-mechanics, which launched operation of the third high density interface (HDI) board production line in its Busan plant early this month, plans to construct the fourth build-up board line by the end of this year, investing some 160 billion won (approximately 139.1 million dollars). When the fourth line is completed, monthly production capacity of build-up boards used for mobile phones will be raised from 10 million units to 13 million units.

¡°Our supply of build-up boards rose by some 30% after operation of the third HDI board production line, and yet we can fulfill 80 to 90% of total orders,¡± said a manager at Samsung Electro-mechanics.

Targeting to expand monthly production capacity of build-up boards at its plant in Cheongju from 5 million units to 7 million units, DMC business division of LG Electronics placed orders for equipment. The company plans to spend some 70 billion won for installation of new facilities. LG Electronics is also mulling over installing additional facilities either in the Cheongju plant or its plant in Osan.

¡°The company will install advanced facilities adopting neo Manhattan bump interconnection (NMBI) technology to take leading position in the market for build-up boards used for high valued mobile phones such as MP3 phones,¡± said a manager at LG Electronics.

As the adoption of flexible boards are expanding to mobile phones, digital cameras and digital camcorders, small and medium-sized PCB makers, including Korea Flex, New Flex, Accuris and Seil Electronics, are also beefing up production capacities of flexible PCBs.

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