Copper foil manufacturers have moved to scale back their output by 30-40% as orders plummet to low levels, according to industry sources. The previous cutback took place in 2008, when the global financial crisis hit, the sources observed.

Taiwan-based Co-Tech Copper Foil has responded saying orders have decreased since May. In view of the declining demand, the company decided to slash its copper foil production 30% to 1,100 tons starting the month, chairman Chen Chung Hsiung indicated.

Co-Tech shipped 1,000 tons of copper foil in May, down from 1,200-1,400 tons over the previous months, Chen said. The company is actually capable of producing 1,500-1,600 tons of copper foil, Chen added.

Co-Tech is still unsure when it can resume full production, Chen noted.

Co-Tech's previous production cutback was carried out in 2008, Chen recalled. The company had to temporarily close some of its production lines while seeing orders having slumped by more than 50%, Chen said.

The current downturn may be less severe than that in 2008, but recovery might take more time, Chen pointed out.

Copper foil is a raw material for making copper clad laminates (CCL) used to manufacture PCBs.

Source:digitimes