PCB material suppliers TGI and Co-tech cutting productions

PCB material suppliers are suffering, as their product average selling prices (ASPs) are falling along with declining raw material prices. Glass fabric maker Taiwan Glass Industrial (TGI) has decided to halt two more furnaces, TT-6 in Taoyuan, Taiwan and TGF-2 of its subsidiary in China. Copper clad laminate (CCL) maker Co-tech is also cutting productions.

TGI's glass yarn furnace TT-6 has been operating for one and half years with a total yearly capacity of 12,000 tons, accounting for 18.5% of the company's total glass fabric capacity. Its glass cloth furnace TGF-2 has been running for three and half years with 10,000 tons in yearly capacity.

The company already stopped operations at three other furnaces TL-1, TT-1 and TF2 earlier this month. All of them had been operating for over seven years.

Co-tech has two plants, one of which is almost idle, and the company's overall utilization rate has dropped to 30%, according to the company. It expects rush orders to boost its utilization back to 50% after February 2009.