Leading PCB Companies Begin To Accelerate Growth Cycle
PCB is called "the mother of electronic products", and its role in electronic products is indispensable. According to Prismark, in the past, the global PCB industry's compound annual growth rate remained at around 4%. In 2017, the global PCB production value was 58.8 billion US dollars, a year-on-year growth rate of 8.60%. China's PCB production value is 29.7 billion US dollars, a year-on-year growth rate of 9.70%, and the growth rate is higher than the global. From the perspective of the distribution of PCB production areas, the focus of the PCB industry is constantly shifting to Asia. China has become the most important player in the global PCB, accounting for more than 50% of the global PCB production value. In 2018, the growth rate of domestic leading enterprises maintained at an average of 20% to 25%, and the growth rate of output value far exceeded the industry average.
New demand leads to steady growth in the PCB industry, 5G will become the biggest new engine for industry growth
Downstream applications of PCBs are concentrated in four main areas: computers, communications, consumer electronics and automotive electronics, accounting for nearly 70% of downstream applications. Jiedubang, a global PCB proofing service provider, understands that although the overall growth rate of the mobile phone and computer markets has slowed, the acceleration of server growth and the upgrade of mobile phone structure requirements have driven demand for
high-end PCBs and FPCs. Smart cars and new energy vehicles have greatly increased the demand for automotive PCBs, and the development of 5G has driven the demand for communication base stations and related equipment. Prismark expects the global PCB market to reach $68.8 billion by 2022, with a compound annual growth rate of about 4%.
Raw material prices have risen and environmental protection policies have been superimposed. The Matthew effect of the domestic PCB industry chain has intensified.
Xindaxing was informed that raw materials such as copper foil and epoxy resin have begun to increase prices. As of July 18, the price of copper foil rose by about 20% from the beginning of the year, and the price of epoxy resin rose by about 44% from the beginning of the year. With the increase in substrate prices, the price of PCB core raw material CCL is also rising, and the average annual price increase rate is 10% to 20%, resulting in a sharp rise in PCB raw material costs. SME PCB factories face greater cost pressures.