With China-based Suzhou Dongshan Precision Manufacturing (DSBJ) looking to acquire US-based Multi-Fineline Electronix (MFLEX), a price war is likely to take place in the worldwide flexible PCB industry later in 2016, according to industry sources.

Decelerating smartphone sales growth and uncertainty about the adoption of wearable devices in the mass market, as well as volatile exchange rates, are already challenges faced by the flexible PCB industry. The acquisition of MFLEX by DSBJ will lead to more intense competition among players, and a price war could break out, the sources indicated.

With the MFLEX acquisition, DSBJ will also be in a position to start competing for flexible PCB orders from Apple with its Japan- and Taiwan-based counterparts including NOK, Fujikura, Sumitomo, Zhen Ding Technology Holding and Flexium Interconnect, the sources said.

Flexible PCB