Taiwan's PCB makers are optimistic about their sales for the months ahead, but they are also cautious about longer-term prospects amid worsening overbooking by clients, according to industry sources.

Many makers engaged in traditional rigid boards for notebook and automotive applications have been busy fulfilling abundant orders in hand since the start of 2021, and more and more of their clients have adopted an overbooking strategy out of concerns about worsening component shortages, or have even offered higher prices to secure priority shipments from the suppliers, the sources said.

Terminal demand for the moment is stronger than seen in past off-seasons, but orders from clients have apparently expanded beyond reasonable growth levels, the sources said.

PCB makers usually boast great flexibility in adjusting their production capacity and shipment schedules if clients suddenly change delivery schedules for existing orders, the sources said.

But what they fear most is correction in terminal demand could send clients canceling orders that they have overbooked to prevent inventiry from piling up, the sources said.

Nevertheless, the sources continued, current strong market demand is unlikely to reverse fast unless any "black swan" event occurs, and instead shipment pull-in momentum may gradually cool off after reaching a plateau period.