PCB shipments for new game consoles to ramp up through 4Q20

Taiwan's PCB makers in the supply chains for new game consoles by Sony and Microsoft will see their shipments, whether IC substrates or rigid mainboards, stay robust through at least the fourth quarter of the year, according to industry sources.

Sony and Microsoft are slated to have their new-generation game consoles PS5 and Xbox Series X, respectively, hit the shelves in mid-November, both showing strong shipment pull-ins from their components suppliers as they are confident about strong replacement demand from gaming consumers, the sources said, adding that Sony has reportedly boosted its PS5 shipments for 2020 to near 10 million units.

Both vendors will also roll out price-friendly models for their new game consoles, which are expected to further drive up sales momentum, the sources noted, stressing they are now more concerned about possible supply shortfalls of components including main processors and ABF substrates.

Both PS5 and Xbox Series X adopt AMD-designed Zen series processors, with ABF substrates to support FCBGA process of the chips mainly supplied by Taiwan's Unimicron Technology and Nan Ya PCB, who have seen their capacity supply for the substrates falling short of demand, the sources added.

Nan Ya and other local peers HannStar Board and Tripod Technology are all among suppliers of rigid mainboards for new game consoles from the two brand vendors, and even some smaller PCB makers have been asked to offer capacity support.

Usually, there is at least a two-year honeymoon period for shipments of new game consoles, indicating that Taiwan PCB makers will secure stable orders for gaming applications in the next two years, the sources noted.