PCB Board Prices Rising, How Does The LED Display Affect?
In recent years, environmental awareness has received more and more attention. People rely on stable economic development and have more requirements for environmental protection construction. The establishment of an "environmentally friendly" society has become a top priority. The country has also adapted to the needs of the times and has increased its efforts to correct the environment. In 2017, China comprehensively strengthened the environmental protection restrictions of the manufacturing industry. In this investigation, nearly 100 companies were forced to suspend business for rectification. The “green tax” implemented in 2018 also led to an increase in environmental costs for PCB manufacturers.
After the PCB manufacturers rectified, some manufacturers that failed to meet environmental requirements were forced to withdraw from the market. Those who are fortunate enough to survive have higher environmental requirements for environmental issues. The increase in environmental protection costs will inevitably lead to an increase in the cost of the upstream industry chain. Some small and medium-sized PCB companies in PCB manufacturers have been forced to exit the PCB market due to environmental failures. The original balance of supply and demand in the PCB market has been broken. A shortage of supply in the PCB market will inevitably lead to a direct price increase.
In the "environmental tax" implemented in 2018, the state legalized the environmental protection issue, and the environmental monitoring of PCB manufacturers will also become standardized, which will also promote the continuous improvement of the material prices of PCB manufacturers.
Secondly, on June 6, 2019, the Ministry of Industry and Information Technology issued 5G commercial licenses to China Telecom, China Mobile, China Unicom and China Radio and Television. The issuance of a 5G commercial license marks China's entry into the 5G business year. The advent of the 5G era has brought a huge market blue ocean to consumer electronics, and it has also ignited a huge demand for copper-clad laminates. CCL is the basic material of PCB. The rise of the 5G concept will drive the rise in the value of CCL, pushing up the price of PCBs.
Third, the micro-pitch of LED display has become an important trend in the future development of the display industry. In recent years, small pitch, COB, mini LED and micro LED technologies have matured, and small pitch displays will be more and more. The development of small pitch LED displays will increase the incremental market for the LED display industry. The growth of the incremental market will inevitably generate greater demand for PCBs.
With the development of small pitch displays, traditional PCB boards are difficult to adapt to the development of small pitch displays, and some package manufacturers are also looking for PCBs that are compatible with smaller pitches. PCB boards that are compatible with smaller pitches will also be very different from traditional PCBs. The process and raw materials will also have higher requirements than traditional PCB boards, which will also drive the PCB. Price increased.
According to industry insiders, the stage price of PCBs has risen. For high-end display products such as small micro-pitch, the PCB cost is relatively small, but the channel construction and LED unit board manufacturers should pay attention to the subsequent price changes and formulate corresponding preventive