Is There Any Future For The Chinese PCB Industry?
1. China accounts for more than half of the global PCB market, the mainland is rising
Printed circuit board (PCB) products have been in commercial use since 1948 and have been invented and widely used since the 1950s. The traditional PCB industry is a labor-intensive industry with a lower technology density than the semiconductor industry. Since the beginning of the 21st century, it has gradually shifted from the United States and Japan to the semiconductor industry in China and Japan. Since its inception, China has become an influential PCB producer in the world, with PCB production accounting for more than 50% of the world.
In 2018, the global printed circuit board production value reached 63.6 billion US dollars. According to the Institute of Obstetrics and Gynecology of the Industrial Engineering Research Institute, although Taiwan still won 31.3% of the global market share in 2018, the proportion of mainland China has reached 23%. Market share and growth rate have steadily increased and gradually pushed to Taiwan's leading position. Together, they account for 54.3% of the global PCB production value, and sit firmly on the NO1 throne.
2. 2018 China's PCB output value exceeds 34 billion multi-layer board dominates
China's electronic circuit industry is on the road of “industrial transfer”. China has a healthy and stable domestic demand market and obvious manufacturing advantages, attracting many foreign-funded enterprises to shift their production focus to mainland China. After years of accumulation, the domestic PCB industry has gradually matured. As a major production area for single-layer PCBs, mainland China is expanding to the mid to high-end market.
In recent years, China's PCB production scale has expanded year by year. According to the "China's printed circuit board manufacturing market prospect statistics" and the "investment strategic planning analysis report" issued by the Zhun Industrial Research Institute, the output value of China's PCB in 2010 has reached 20.17 billion US dollars. As of 2017, China's PCB production value has increased to 29.73 billion US dollars, an increase of 9.7%, accounting for 50.53% of the global total. By the end of 2018, the scale and growth rate of China's PCB industry reached a record high, with an output value of US$34.5 billion, a year-on-year increase of 16.0%.
As downstream electronic products pursue light, thin, short and small development trends, PCBs continue to develop in the direction of high precision, high integration and thinning. However, compared with Japan, South Korea, Taiwan and other regions, PCB products in mainland China are still dominated by low-end products, such as single-layer and double-layer panels and multi-layer boards with less than 8 layers. In 2017, the proportion of multi-layer boards in China's PCB products reached 41.5%.
3. The industry is mainly concentrated in Jiangsu and Guangdong.
PCB products are basic electronic components, and their industries are mainly centered on downstream industries. At present, there are about 1,500 PCB companies in mainland China, mainly in the electronics industry, such as the Pearl River Delta, the Yangtze River Delta and the Bohai Rim region. These areas have great demand for basic components, and have good transportation conditions and hydropower conditions. Among them, the two provinces of Guangdong and Jiangsu are highly concentrated. In 2017, Guangdong PCB industry's sales revenue accounted for 46.26% of the industry, and Jiangsu reached 34.77%. The two together account for 81% and the regional concentration is high.
4. The concentration of enterprises is low, and foreign-invested enterprises occupy the main market position.
China's PCB industry is developing rapidly, but the initial output value contribution is mainly from China's foreign capital production capacity, while domestic enterprises are less competitive. According to the statistics of CPCA, in the PCB industry, the proportion of foreign manufacturers in China is 58%. Although the number of domestic manufacturers has increased, the scale is relatively small. From the data of domestic PCB companies in 2017, the proportion of domestic enterprises with a scale of more than 1 billion is less than 30%. Among the top ten domestic PCB manufacturers, only two Chinese local companies are on the list, and the total of the top ten is 40.18%. Chinese PCB companies are small in scale and low in aggregation.
5. Emerging industries promote industrial development, China's PCB output value will exceed 40 billion US dollars
China is a globally influential electronic information product manufacturing base and consumer market. With the continuous development of "Made in China 2025", in the emerging markets of mobile Internet, Internet of Things, big data, cloud, etc.