Taiwan PCB Firms Face Production Slowdown in Thailand Amid Trump’s Tariffs

Taipei: Taiwanese printed circuit board (PCB) suppliers are likely to slow down their production in Thailand, now that the Southeast Asian country has been slapped with a 37 percent reciprocal tariff by U.S. President Donald Trump, according to a former chairman of the Taiwan Printed Circuit Association (TPCA). According to Focus Taiwan, Li Chang-ming, who recently stepped down as TPCA chairman, expressed surprise over the high tariffs imposed on Thailand. This development could lead to Taiwanese PCB makers being more cautious about expanding in Thailand, where 14 Taiwanese firms currently operate production bases. Li serves as a senior advisor to Taiwan-based Ajinomoto build-up film (ABF) supplier Unimicron Technology Corp. In addition to Unimicron, 13 other Taiwanese PCB firms have investments in Thailand, making it a significant overseas manufacturing hub for Taiwan's PCB industry. These companies include Compeq Manufacturing Co., ZhGolen Ding Technology Holding Ltd., and Gold Circuit Electronics Ltd. Ot her Taiwanese firms, such as Tripod Technology Corp., have established facilities in Vietnam, while HannStar Board Corp. and Global Brands Manufacturer Ltd. have production lines in Malaysia. Li's comments followed the Trump administration's announcement of a fresh round of tariffs on April 2. Trump declared a 10 percent baseline tax on imports from all countries starting April 5, with higher duties for countries with larger trade surpluses with the U.S., such as Taiwan, China, Japan, South Korea, Vietnam, and Thailand. Subsequently, Trump announced a 90-day pause on the new measures, reducing duties to 10 percent for all countries except China. Li noted that the higher tariffs on Thailand and Vietnam compared to Taiwan present challenges to Taiwanese PCB manufacturers operating in Thailand. These manufacturers initially expanded to Thailand to mitigate the effects of the U.S.-China trade war. However, they now face additional challenges from the Trump administration's latest tariff actions, which may slow their efforts to produce goods in Thailand for the U.S. market. The ongoing tariff conflict between Washington and Beijing also remains a concern for Taiwanese PCB producers, who have established extensive production lines in China. Trump's tariffs on Chinese goods have increased to 145 percent, while China has retaliated with 125 percent tariffs on American products. Li advised Taiwanese PCB producers to reconsider their strategies regarding investments in China, suggesting they focus on selling their goods within China rather than exporting them. He also highlighted the difficulties of relocating manufacturing to the U.S., due to the lack of a comprehensive supply chain and higher labor costs, which could outweigh the financial burden of tariffs. Chiu Shih-fang, an analyst with the Taiwan Industry Economic Services, expressed concerns about end-user demand for products containing PCBs, such as electric vehicles and smartphones. She noted that higher product prices due to tariff hikes could weaken demand, impacting PCB sales and increasing financial risks if clients demand cost-sharing for tariffs.