Higher Gold And Copper Prices Affect PCB Cost Margin

- Aug 27, 2015-

Recently, the Yuan/dollar exchange rate continued to rise, but the overall effect on PCB industry chain gradually decreased. But in terms of gold, copper and other valuable metals, there has been a trend of rising prices, effect on PCB industry should not be underestimated.

Recently yilai gold price continued soared rose, even repeatedly create history high, associated to on printed circuit board (PCB) industry chain,, IC (IC) base board factory first, should for film transistor LCD display (TFT-LCD), and memory module (Dram Module), of PCB manufacturers, because PCB technology content high, sank gold gilded proportion big, so with gold volume big, received gold rose of effect relative larger.

In terms of IC substrate, gold cost 20%-30% IC substrate, based on current relevant manufacturer for reuse of waste increase, gold is still at least 10% per cent of the cost proportion affected gross profit margins of more than 1%. In terms of Dram module, TFT-LCD, is used for both PCB boards for more gold-plated, so affected by the gold goes up relatively large.

In addition to gold, another important raw material copper PCB and copper prices also rose. Copper is an important substrate PCB circuit board copper foil substrate (CCL), the primary material for of phosphorous copper ball, more than gold, so the rise in copper prices a greater impact than gold for the PCB industry. Copper prices rose sharply in the third quarter, October is still rising, according to authoritative estimates that copper prices will hit a record high, there may be more than $ 9,000 a tonne mark. Is not a good news for the PCB industry, rise in copper prices directly affects the rising cost of PCB, PCB reflected rising costs to customers is no easy work, upward pressure on costs from its own Digest, will inevitably affect interest rates.

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