South Korean printed circuit board (PCB) manufacturer Isu Petasys is exiting its high density interconnect (HDI) board and flexible PCB (FPCB) business, TheElec has learned.
The company notified its customers, which includes Samsung Electronics, and its employees of the exit, people familiar with the matter said.
Isu Petasys’ subsidiary Isu Exaboard had been manufacturing HDI and FPCB at its factory in Ansan. Isu Petasys itself focuses on telecom and network boards.
Isu Exaboard has been suffering from five straight years of operating and net loss as of 2020.
Last year, the company recorded 120.9 billion won in sales, 10.8 billion won in operating loss and 13.2 billion won in net loss. Sales dropped 15.2% and operating loss dropped 60% compared to 2019. However, compared to the company’s earnings in 2017, operating loss and net loss tripled.
When Samsung Electro-Mechanics exited from its HDI business in 2019, there were hopes that Isu Petasys could benefit from the vacuum left. However, Samsung Electronics orders for HDI used in flagship and mid-tier phones mostly went to Korea Circuit and DAP. Additionally, in 2020, Samsung saw low sales from smartphones.
Isu Petasys has considered an exit in 2020, but ultimately decided to wait until 2021, the people said.
The company’s talks to sell its equipment used at its factory at Ansan was not going so well as most of them are old, they said.
However, Isu Petasys intends to continue its operations in China and its factory at Daegu. The exit of Isu Exaboard will also help with its long-term earnings.
Meanwhile, fellow PCB firm SI Flex last year also sold its Ansan plant and shifted all its production focus to its facilities in Vietnam. It is also planning to move its headquarters to Suwon, and focus on research and development there.