PCB Industry Accelerates Transfer
The trend of the eastward shift of the industry has led the mainland to thrive. The focus of the PCB industry has continued to shift to the Asian region, and the capacity of the Asian region has further shifted to the mainland, forming a new industrial pattern. With the continuous transfer of production capacity, mainland China has become the region with the highest PCB production capacity in the world. According to Prismark estimates, China's PCB output value will reach 40 billion US dollars in 2019, accounting for more than 50% of the global total output value.
Applications such as data centers increase HDI demand, and FPC has a bright future. Data centers are developing towards high-speed, large-capacity, cloud computing, and high-performance features. The demand for construction has soared, and the demand for servers will also increase the overall demand for HDI. The popularity of mobile electronic products such as smartphone will also increase the demand for FPC boards. Under the trend of intelligent and thin mobile electronic products, the advantages of FPC light weight, thin thickness, and resistance to bending will facilitate its widespread use. The demand for FPC in the display module, touch module, fingerprint recognition module, side keys, power button and other sections of smart phones is increasing.
With the increase in the concentration of "raw material prices + environmental inspections", leading manufacturers welcome the opportunity. The rising prices of raw materials such as copper foil, epoxy resin, and ink in the industry have transmitted cost pressure to PCB manufacturers. At the same time, the central government has vigorously conducted environmental protection inspections, implemented environmental protection policies, cracked down on small manufacturers with turbulence, and imposed cost pressure. Under the background of rising raw material prices and stricter environmental protection inspections, the reshuffle of the PCB industry has brought increased concentration. Small manufacturers have weak bargaining power for downstream, and it is difficult to digest the upstream price increase. Small and medium-sized PCB companies will withdraw due to the continuous narrowing of profit margins. In this round of reshuffle of the PCB industry, leading companies have technical and financial advantages and are expected to pass Expansion of production capacity, acquisitions and mergers, product upgrades, and other methods to achieve scale expansion, with its efficient production processes, excellent cost control based on direct benefits from the industry's increased concentration. The industry is expected to return to rationality and the industry chain will continue to develop healthily.
New applications are driving industry growth, and the 5G era is approaching. 5G new communication base stations have a large demand for high-frequency circuit boards: Compared with the number of million-level base stations in the 4G era, the size of base stations in the 5G era is expected to exceed 10 million. The high-frequency and high-speed boards that meet the 5G requirements have wider technical barriers than traditional products, and also have higher gross margins.
The trend of automotive electronics is driving the rapid growth of automotive PCB. With the deepening of automotive electronics, the area of automotive PCB demand will gradually increase. Compared with traditional vehicles, new energy vehicles have higher requirements for the degree of electronics. The cost of electronic devices in traditional luxury cars is about 25%, and in new energy vehicles it is 45% to 65%. Among them, BMS will become a new growth point for automotive PCB, and high-frequency PCB mounted on millimeter-wave radars require a lot of rigidity.