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Taiwan-based PCB suppliers, including Unimicron Technology, Compeq Manufacturing and Unitech Printed Circuit Board, have ramped up the capacity utilization rates of their HDI board production lines significantly in the second quarter of 2014 due to strong demand from the smartphone sector, according to industry sources.

The recent roll-outs of new models by Samsung Electronics, HTC, Sony Mobile Communications, Asustek Computer as well as by China-based handset vendors have driven up demand for HDI boards, particularly those high-end models, said the sources.

Additionally, Taiwan-based PCB makers have also landed more windfall orders after March when the HDI board production lines of Korea-based DAP were damaged by fire, the sources added.

Unimicron has ramped up the utilization rate of its HDI board production lines to 80-90% recently compared to below 70% earlier in the year, the sources noted.

Compeq is currently operating at over 80% of its production capacity, while Unitech plans to further expand its capacity for any-layer HDI boards, the sources indicated.

With Apple planning to release its new iPhone in the second half of 2014, the supply of HDI boards is expected to remain relatively tight until the end of the year, the sources commented.