Issue link: https://iconnect007.uberflip.com/i/1392944
32 PCB007 MAGAZINE I JULY 2021 Nippon Denkai a year ago, but we are already leveraging their PCB foil technology to create new opportunities for us in the domestic PCB market where there is a lot of room for techni- cal differentiation in PCBs. Our CEO, Dr. Nak- ajima, has made it abundantly clear to our orga- nization and to our shareholders that there's a place for us in both markets. ere is no doubt that the battery foil business will drive volume, but when it comes down to it, our shared histo- ry is with PCB foils. Johnson: For our readers, the fabricators using the laminates, copper foil, and copper in their processes, what should they prepare them- selves for? Coll: Continued price volatility and poten- tial intermittent supply shortages. It is not just copper foil; these are the same issues that are impacting the overall global supply chain. e ripple effect from the backlog of global ship- ping lanes is clearly impacting everyone's sup- ply chain. Stevens: We are working with our customers to avoid panic buying our copper foil. As men- tioned, we have ample raw material supply. However, we are working to build inventories, especially for overseas customers that are also impacted by the same shipping delays that are disrupting us. Copper price volatility will re- main a big issue for the PCB industry to man- age throughout the year, but we are not expect- ing an issue with supply. We expect some sta- bility in the market by the end of the year. Be- yond the end of the year, it's hard to forecast, mainly because of the rapid expansion of bat- tery manufacturing in all the different regions of the world. But specifically in the U.S., Pan- asonic already consumes significant quantities of foil. SK Innovations in Georgia is starting up, and the new Ultium factories (the partner- ship between LG and GM) are not far behind. ere are multiple other small battery compa- nies that are installing gigawatt manufactur- that Denkai America provides to the electron- ics manufacturing marketplace. Coll: For North America, we predict the re- quirement for copper foil for use in EV batter- ies will surpass that of the printed circuit board industry within the next two years. Johnson: Right. Which leads back to my earlier question. If I oversaw a business making cop- per foil, it would be a tempting time to pivot. Coll: ere is definitely a temptation to pivot, but to what extent? e requirement to build a copper foil factory is very capital-intensive and the equipment, like the drums, are high- ly specialized. We will be celebrating 30 years of continuous operation next year in our South Carolina factory which was specifically built for PCB foils. We have plans to convert under- utilized capacity from traditional PCB foils to manufacture lithium-ion battery foils. Our fo- cus is to enter the battery space without sacri- ficing the relationships that we have built with- in the U.S. PCB and industrial markets. Johnson: e fact that it's hard to pivot should hopefully be comforting for the electronics suppliers, I'm sure. Stevens: We hope so. Our position within the U.S. electronics supply chain is incredibly valu- able to us. ere is no plan to be just a battery foil company. Our parent company, Nippon Denkai, is successfully growing in both the printed circuit board and battery foil markets. Our goal is to collectively maintain a presence in the PCB industry. We were only acquired by There is definitely a temptation to pivot, but to what extent?