Taiwan: FPC and LVDS connector market still has room for growth

While demand for PC peripheral connectors is slowing down, highprofit applications like LCD TVs are boosting the connectors market. According to the data released by DisplaySearch, global LCD TV unit shipments soared 99 percent yearon- year and 15 percent quarter-onquarter to reach a record high of 10.8 million units in 2006, taking 24 percent of the worldwide TV market. Consequently, this trend has warmed up the demand for flat printed circuit (FPC) connectors and low voltage differential signaling (LVDS) connectors.



Generally, connectors for flat panels can be divided as: FPC, LVDS, and wafer connectors. An LVDS connector is designed for notebook PCs to LDC interconnect and LVDS, which allow high-speed multi-line transmission through narrow tubes. A wafer connector is used to link power and signal for panels.FPC CONNECTOR

An FPC connector is applied to connect the panel to the main structure. This product used to be dominated by Japanese manufacturers like JAE and Hirose, but this trend has changed since LCD TV manufacturers lowered down their average selling prices to broaden the penetration rate. Taiwan vendors are able to produce FPC connectors that are 10 percent to 30 percent cheaper than Japanese vendors. This profit margin is still fairly good compared to PC connectors.



DEMAND TO PICK UP

Many Taiwan manufacturers are relatively new in producing FPC connectors. But as the LCD TV market is growing, it is estimated that the demand for FPC connector will also pick up.



Hon Hai Precision Industry Co., the largest manufacturer of connectors in Taiwan, had ramped up its diversification into the booming LCD TV market to tap into new growth areas. T.C. Gou, chairman and president of Foxlink, a subsidiary of Hon Hai, revealed the company’s October revenue at $122.67 million. “The revenue of connector products, including FPC connectors, was $14.24 million, up 40 percent year-on-year,” Gou said. Foxlink provides low-profile 0.5mm pitch FPC connectors, including top and bottom contact flip lock type and ZIF/LIF structures.



An LVDS connector is mainly applied in panels that are bigger than 17 inches. Local vendors like P-two industries, L&K Precision and Entery Industrial are aggressively developing this type of connectors. They tie up with panel module makers and co-develop products. With so many panel makers in the island, LVDS connector manufacturers have the advantage of providing support to their clients.