Server PCB makers see bright shipment prospects for 3Q20

Server PCB specialists Tripod Technology, Gold Circuit Electronics (GCE) and Allied Circuit have seen clear order visibility through the end of July and are optimistic that their shipments for servers and networking equipment will remain robust throughout the third quarter, according to industry sources.

The three makers will end the second quarter with better server PCB shipment results than the first quarter, bolstered by strong demand for global datacenter applications. GCE's net profits for April shot up 375% on year to NT$209 million (US$6.96 million), and its second-quarter net earnings will have a chance of surging 50% sequentially, the sources said.

The makers have turned increasingly confident since early May about a strong third-quarter. Tripod said its shipments for servers and network applications will not slow down as stay-at-home economic momentum will remain strong even after the coronavirus pandemic ebbs.

CCL maker Iteq also noted that demand from datacenters will remain robust in the second half of the year, as Chinese clients will continue accelerating 5G infrastructure construction and US cloud services providers have yet to show signs of reducing their capital expenses for second-half 2020.

Furthermore, major US chipmakers are set to launch new server CPUs and GPUs in the second half of the year, which may further stimulate shipments of servers and related components including PCBs, the sources said.