FCCL makers optimistic about 2H13

Flexible copper-clad laminate (FCCL) demand is expected to see a seasonal pick-up in the third quarter thanks to new product roll-outs and continued growth in China's smartphone market, according to makers Taiflex Scientific and ThinFlex.

Taiflex expects its sales to the flexible PCB sector to expand 20% sequentially in the third quarter thanks to demand from the iPhone supply chain, while ThinFlex will benefit from steady sales of entry-level and mid-range smartphones in China.

Taiflex is also expected to see its gross margin improve in the third quarter due to increasing shipments of its high margin 2L-FCCLs, which currently account for 40-43% of the company's total sales.

Meanwhile, industry watchers expect ThinFlex to continue to post record-high revenues in August and September after its monthly figures hit an historic high in May.

To cope with strong demand, ThinFlex plans to ramp up its capacity by 25-30% before the end of 2013, pointed out the industry watchers.

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