bedrijfsnieuws over Another Materials Manufacturer Announces Price Hikes for CCL and Substrate Materials

According to a report by Taiwan's Economic Daily News, materials manufacturer Nan Ya Plastics Corporation (hereinafter referred to as "Nan Ya Plastics") will significantly increase prices for copper clad laminate (CCL) and substrate materials starting in September. The market estimates that the price increase will range between 5% and 10%.

According to a price adjustment notice from Nan Ya Plastics circulating in the market, the document states that recent sustained price increases in raw materials such as copper foil, fiberglass fabric, and resin have led to a substantial rise in CCL production costs. Although Nan Ya Plastics has tried to absorb the costs internally, the magnitude of the cost increase has been too great. To reflect these higher costs, the company will moderately adjust some of its selling prices, with substrate and base material prices each rising by 20%, effective September 1.

In response to market rumors, Nan Ya Plastics officially stated that in order to cope with rising costs across various materials, the company has indeed been continuously negotiating with customers and gradually raising product prices since the beginning of this year. Overall, the cumulative increase for various electronic materials products this year ranges between 50% and 100%, but the extent of price adjustments varies by product due to differences in specifications, costs, supply and demand, and other factors.

Nan Ya Plastics emphasized that the company has always negotiated and discussed prices with individual customers on a case-by-case basis, and does not unilaterally issue price increase notices, nor has it ever announced a one-time, unilateral 20% price hike.

Therefore, the price adjustment letter circulating in the market is not an official notice issued by the company to its customers, and is speculated to be correspondence from the negotiation process with a specific customer.

However, Nan Ya Plastics confirmed that multiple products will indeed see price increases starting in September, with the market generally estimating the hikes to be between 5% and 10%.

In terms of the electronic materials product market, Nan Ya Plastics stated that among all materials, fiberglass fabric is currently facing the most severe shortage, with copper foil supply also in a similar situation. This has in turn driven up both the material and manufacturing costs of CCL.

Nan Ya Plastics also recently noted that the four major U.S.-based cloud service providers (CSPs) are expanding their capital expenditures, which has driven the upstream electronic materials sector to face structural shortages and price increases. Nan Ya Plastics has been gradually raising prices on electronic materials to reflect these costs. In the fiberglass yarn segment, due to tight supply of electronic-grade fine yarn, low dielectric constant, and low coefficient of thermal expansion specialty fiberglass, Nan Ya Plastics has not only increased relevant production capacity in response to market demand but has also raised prices. In the fiberglass fabric segment, prices have also been adjusted upward due to capacity enhancements and increased sales growth of low thermal expansion coefficient fabric types.

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Source: Xin Zhi Yuan (Chip Insights)

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