Appendix E: Nan Ya Plastics Corporation, PCB Division

Site:: Nan Ya Plastics Corporation, PCB Division
336, Sec. 1, Nankan Rd., Luchu, Taoyuan, Taiwan Tel: 886-3-322-3751; Fax: 886-3-322-3802
Participants:: Otto C.F. Chang, Vice President/General Manager, PCB Division
Mark Y.C. Lee, Assistant Vice President, PCB Division
Charles Chang, Assistant Sales Manager, PCB Division
Hans Bao, Quality Assurance Engineer, PCB Division
Steve C. Chen, Sales Manager, PCB Division
Tom Wu, Sales Department, PCB Division

Nan Ya is a division of Formosa Plastics, a $10 billion conglomerate. Nan Ya's PCB factory opened in Taiwan in 1985 with HP technology. It now has $100 million invested in PCB manufacturing facilities.
Nan Ya is an OEM PCB shop and does not design boards for customers.
Nan Ya's goals are to provide customers with high-quality, highly reliable printed circuit boards, at the lowest possible assembled cost, and to grow with its customers.
As a manufacturing leader, the Formosa group tries to be lowest-cost producer through large-scale production, automation, quality control, product design, power generation, and internal manufacturing of equipment.
Computer and telecom boards account for 77% and 18% of PCB sales, respectively.
The company's quality, cost, and timely delivery are key to its success.
Laminates and resins are provided by group companies.

Sales include the U.S.A. (42.9%), S.E. Asia (23.7%), Europe (20.6%), Canada (4.1%), Taiwan (3.4%) and others, including Japan (5.3%). In 1995, 77% of PCBs were used in PCs and peripherals, 18.1% in telecommunications, 3.5% in automobiles, and 1.4% in medical products. PC-related sales have fallen to about 62%, while automobile-related sales increased to 12% in the first quarter of 1996.
Major customers include Apple, Delco, HP, IBM, Intel, Motorola, Nokia and Nortel.
Two plants produced 640,000 ft² per month in 1995 of FR-4 and tetra PC boards with $240 million in 1995 sales. Plant 3 will have a capacity of 750,000 ft². 1995 capacity was 8.0 million ft², increasing to 18 million by 2000.
1,400 people are employed, increasing to 2,000 with completion of the third factory.
4- & 6-layer boards comprise 80% of current production. 8-layer boards are mass produced and 14-layer boards are in sample production.

Nan Ya imposes rigid standards on the management of the manufacturing process. The shop floor CIM tracks product and quality through the manufacturing process.
In February of 1993, the Nan Ya PCB division received ISO 9002 certification.
PCB process capabilities include 4 mil line, 5 mil space, and 10 mil pitch SMD. Smallest finished hole size is 8 mil. Blind and buried via technology will be introduced in 1996.
Surface finishes include electroless Ni/Au, Entec, hot air soldering leveling (hasl). Super solder precoating will begin 2Q96 for TCP requirements.
44 automatic drilling machines are automatically loaded and unloaded. About 145 boards are processed at once using a universal fixture to handle any sized panel. Nan Ya currently drills about 11 mil holes, but can handle 8 mil holes.
High-layer, high-density boards have 100% automatic optical inspection against model.

The third plant will be most advanced. Current production is up to 14 layers.
Net yield at final inspection is 93% with goals to improve to 95% in 1996.
CIM controls and automation capabilities are very strong with vertical integration.
The management model is TQRDC plus 5M and 5S for total customer satisfaction.

Published: May 1997; WTEC Hyper-Librarian