With printed circuit boards for mobile devices (mobile handsets and digital cameras) being the largest business segment for ATS, the company was struggling against the 16 percent decline in worldwide mobile handset production in 2008. In addition, the company faces another challenge in the rise of entry-level handset for emerging markets. This trend translates into a higher percentage of low-tech PCB production whereas ATS sees its strength in sophisticated manufacturing with features such as high-density interconnects and laser-drilled vias.
Large customers typically order manufacturing "bundles" containing high-end components as well as low-end ones, explained Hans Lang, investor relations manager for AT&S (Vienna, Austria). AT&S however is more interested in the more profitable high-end manufacturing and tries to re-focus its offers in this sense. "We are considering whether it makes sense to accept assignments for low-tech PCBs. We are not willing to make losses in this segment," Lang said.
Austrian pcb manufacturer AT&S expects revenues for its FY 2008/2009 of €450 million, a decline of 7.2 percent against the year before. The company plans to counteract the downtrend by putting more emphasis on high-end production orders.
