PCB I: The position of China in the PCB Industry Continues to Strengthen, And Domestic Enterprises Shoulder Heavy Responsibilities

Printed circuit board, also known as PCB, is a provider of electrical connections for electronic components. The printed circuit board we usually say is a bare board, which refers to a circuit board without components. The circuit board plays the role of supporting and fixing objects, and also the connection between the lines to transmit electrical signals. PCB is the foundation of the electronic information industry, which is called the mother of the electronic industry.

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The Growth Rate of China's PCB Industry Is Higher Than the Global Average

It is reported that the global output value in 2018 was about 62.4 billion US dollars, an increase of 3.84% year-on-year, which is expected to reach 79.2 billion US dollars in 2025.

It is reported that the output value in China in 2018 was about 31.2 billion US dollars, an increase of 5.01% year-on-year, which is expected to reach 53.5billion US dollars in 2025.

Industry Continues to Shift to Mainland China

With the shift of the global electronic information industry from the developed countries to the emerging countries and regions, Asia has become the most important production center of electronic products, especially in China. It is reported by MIIT that the value-added of the electronic information manufacturing industry above the designated size increased by 13.1% year-on-year, which was 6.9 percentage points faster than the growth rate of all industries above the designated size. With the migration of the electronic information industry chain, the PCB industry, as the basic industry, has also concentrated in China, Southeast Asia, and other Asian regions. Before 2000, more than 70% of the global PCB output value was distributed in the Americas, Europe, and Japan. Since entering the 21st century, the focus of the PCB industry has been continuously shifting to the Asian region. At present, the PCB output value in Asia is close to 90% of the world, especially in China and Southeast Asia. Since 2006, China has surpassed Japan to become the world's largest PCB producer, with PCB production and output value ranking first in the world.

In recent years, the global economy has been in a period of in-depth adjustment. Major economies such as Europe, the US, and Japan have significantly weakened the leading role of world economic growth, of which PCB market growth is limited. As the largest producer of the global PCB industry, China's share of the total output value has risen from 31.2% in 2008 to 53.7% in 2019, and the output value of the Americas, Europe, and Japan have all fallen sharply.

In 2018, the largest application of PCB in China was the communications category, benefiting from the vigorous development of smartphones and the Internet, remaining at a high level of the market share 30%; followed by computers with a market share of 26% and the automotive electronics with 15%. With the development of intelligent automotive management systems and automotive multimedia interactive systems, automotive electronics will become a new opportunity for the development of the PCB application market.

New Demand Leads to Industrial Upgrading, And 5G Construction Drives PCB Demand

The application requirements of the communication network for PCB are mainly in the four major areas of wireless network, transmission network, data communication, and fixed network broadband. In the early stage of 5G construction, the increase in demand for PCBs is directly reflected in wireless networks and transmission networks, in which there is a greater demand for PCB backplanes, high-frequency boards, and high-speed multilayer boards. In the middle and late stages of 5G construction, with the further penetration of 5G high-bandwidth business applications, such as mobile high-definition video, car networking, AR/VR, and other business applications, it will also have a greater impact on the data processing and exchange capabilities of the data center, which is expected that after 2020, domestic data centers will be upgraded from the small data center about 10G to a pretty larger, with an order of magnitude increase, in which the demand for high-speed multilayer boards in the data communication field will increase rapidly.

The Automotive PCB Industry Is Another Sector with Huge Development Potential

Automotive electronics have diversified requirements for PCBs, with large quantities and low prices coexisting with reliable and safe requirements. A large number of hard boards are used in application environments such as dashboards, car audio, and driving computers, making 4-layer boards account for 38% of the output value, 2-layer boards and 6-layer boards each account for 16%, followed by 5% of the 8-layer board; in the engine room, the heat dissipation substrate occupies 3% of the proportion due to the high-temperature environment and the heat dissipation requirements of the LED light source; in the high-frequency transmission and wireless radar detection, low temperature co-fired ceramics (LTCC) occupies 5%; products specially developed for the needs of automotive customization, such as IC carrier boards, soft boards, account for about 17% of the total. On average, a car uses about 1 square meter of PCB board, which is worth about 60 US dollars.

Driven by the automotive electronics, the demand for PCB will increase, in which the stable order and the high profit have attracted many enterprises to enter the industry. Since the automobiles are carried out in the harsh environment of high-speed driving, the automotive PCBs are better than ICT product specifications in terms of temperature resistance, electromagnetic wave resistance, earthquake resistance, and corrosion resistance. It is far more important for automotive electronic component suppliers to maintain high and stable quality products than products with low-end prices. As vehicle manufacturers often have a product verification period of up to three years, those who want to enter automotive electronics PCB manufacturers in the supply chain need to have enough patience and strength.

The development of the downstream industry is the driving force for the growth of the PCB industry. With the innovation and development of electronic terminal products, the development of the PCB industry has become more stable, compared with the previous situation of relying on a few types of electronic products.

Electronic information is a key strategic industry in each country. PCB, as the basic product of electronic products, has been promoted by the national policies to guide the healthy development of the industry. With the emergence of ecological and environmental problems, the concept of green environmental protection has gained consensus in the electronics industry. Under strict environmental protection standards, companies need to establish a more complete environmental protection system, and the future industry processing and products will develop in the direction of environmental protection.




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