PCB companies are mainly concentrated in China, Taiwan, Japan, South Korea, the United States and Europe. In 2017, the number of global PCB companies still exceeded 2,500, accounting for 1,200 domestically. Among them, Avary Holding ranked first in 2017 achieved revenue of 3.588 billion US dollars, and the global market share was only 6.1%; the top ten enterprises achieved a total revenue of 19.77 billion US dollars, CR10 was 33.5%, CR20 was 48.7%, CR30 At 60.5%, the industry is relatively fragmented. However, in the vertical direction, CR10 increased from 24.4% in 2011 to 33.5% in 2017, CR20 increased from 40.6% in 2011 to 48.7% in 2017, and CR30 increased from 49.8% in 2011 to 60.5% in 2017. Industry concentration is constantly improving.
PCB capacity is certainly transferred to mainland China. We have calculated the compound growth rate of the top 30 PCB companies in the world in 2011-2017. It can be seen that in addition to the smallest BH company in Korea, the top six companies from mainland China or Taiwan, and Taiwan PCB companies Most of them have production lines in mainland China. It is estimated that by 2022, PCB in mainland China will account for 51.9% of the world, CAGR of 3.7% in 18-22, and an average global growth rate of 3.2%.
Why is PCB capacity transferred to mainland China?
1) PCB is a labor-intensive industry. The PCB production process usually consists of dozens of processes, requires a large number of workers, and is a typical labor-intensive industry. Take 8 Chinese PCB leading enterprises as an example. The operating income of 8 enterprises in 2017 is 24-233.9 billion yuan, the number of employees is 4000-37600, and the per capita output value of 8 enterprises is about 500-600,000 yuan. The weighted per capita output value of home enterprises is 8.11 billion yuan, and the per capita income-generating capacity of the PCB industry is significantly weaker than that of other electronic enterprises. Therefore, PCB is an industry that requires a large amount of labor. In the past few years, mainland China has gradually acquired the initiative of the PCB industry with its outstanding labor cost advantage.
Will low-cost labor in Southeast Asia drive the next transfer of the PCB industry? With the continuous increase of domestic labor costs, on the one hand, Chinese PCB companies continue to increase the automation rate to reduce labor costs. On the other hand, some Japanese Taiwanese companies have gradually set up factories in Thailand, Vietnam and other countries. However, PCB companies have high requirements for infrastructure and workers. In the short to medium term, infrastructure and workers in Southeast Asia are not as good as those in mainland China. Currently, factories in Southeast Asia are mainly enterprises with high labor costs such as Japan and Taiwan.
2) Innate advantages: backed by the world's largest PCB market. PCB is the carrier of all kinds of electronic components and is the foundation of the electronic information industry. In 2017, China's electronic information industry has exceeded 18 trillion yuan, and the electronic information manufacturing industry has revenues of more than 13 trillion yuan. It is the world's largest electronic information product manufacturing base. As a world factory, mainland China has attracted many foreign-funded electronic information companies to invest and build factories in China in the past decade, and gradually brought upstream components, structural parts and connector industries into China. Therefore, PCB companies in mainland China have quite good innate advantages. In the future, with the rise of domestic electronics companies, PCB, especially high-end PCB products, will bring greater market demand.
3) Overseas companies are less willing to expand production, and the newly added capacity is mainly from the land-based enterprises. With the rise of the PCB industry in mainland China, foreign capital has been declining in the middle and low-end products market, and production capacity has gradually withdrawn. Only some Taiwanese companies are expanding the production capacity of niche products or high-end products. On the one hand, the mainland PCB factory, on the one hand, the small factory exited the market due to the pressure of environmental protection, capital and technology upgrade. On the other hand, the large factory relied on its own scale advantage, standardized management and continuous R&D investment to keep up with the downstream market demand, while relying on Chinese capital. With the support of the market, the production capacity of various products is continuously expanded to capture market share.
Judging from the current PCB-listed companies of A-shares and Hong Kong stocks, there are 20 PCB companies listed in 14-18 years, and 14 years ago, China had only 10 PCB-listed companies. In the past five years, Chinese PCB companies have accelerated their landing in the capital market. The power of capital to expand capacity. Judging from the expansion of products, in the past, Chinese companies mainly expanded their hard-board production capacity. From the perspective of fundraising projects of various companies in recent years, Chinese PCB companies have gradually moved to high-end products such as HDI, multi-layer board and FPC. Into the military, it is expected that the global PCB production capacity will further tilt to the mainland in the future.