Domestic PCB companies still have obvious competitive advantages
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China is a global electronics manufacturing center and the world's largest consumer market for electronic products, which provides sufficient market depth for the domestic PCB industry. At the same time, the domestic PCB industry chain is well-equipped and the labor resources are sufficient, so that domestic PCB enterprises still have Obvious competitive advantage.
China is the most important PCB production base in the world. According to Prismark, in 2017, Asia accounted for about 90% of the global PCB industry's total output value, of which China accounted for more than 50% of the global PCB industry's total output value. The domestic PCB industry has entered a period of sustained and steady growth. In 2017, the output value of China's PCB industry reached US$29.932 billion.
In 2017, the number of domestic PCB industry enterprises was about 1,300, mainly distributed in the Pearl River Delta, the Yangtze River Delta and the Bohai Rim region. PCB production in the Pearl River Delta and the Yangtze River Delta accounted for about 90% of China's total output value. At the same time, due to factors such as rising labor costs and environmental protection requirements in coastal areas, the domestic PCB industry is gradually shifting to provinces and cities with better inland industrial conditions.
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The PCB industry has the main characteristics of regional, periodic and seasonal. In terms of regional aspects, due to the high level of economic development in the coastal areas of East China and South China, and the electronic information industry has been relatively developed, the advantages of talents, economy and industrial chain are more prominent. Therefore, the industry companies in the above two regions are constantly moving towards high-end products and high Value-added products are moving in the direction.
In recent years, due to factors such as rising labor costs and stricter environmental protection policies, companies in the industry have also stepped up their capacity expansion in areas with better basic conditions in the central and western regions.
In terms of periodicity, the PCB industry （High quality pcb manufacturer）has a wide range of downstream applications, covering consumer electronics, communications equipment, automotive electronics, medical electronics, industrial control equipment, smart security, clean energy, aerospace and military products, and so on. The circuit board industry is less affected by a single industry, and its cyclical performance is mainly characterized by fluctuations in macroeconomic fluctuations.
In terms of seasonality, due to the combined influence of factors such as holiday consumption and early-stage customers' stocking in response to the peak season of consumption, the production and sales scale of enterprises in the industry in the second half of the year is generally higher than that in the first half of the year, but the overall seasonal characteristics are not too obvious.
In addition, the downstream application field of the PCB industry is still expanding. The demand for mobile phones such as smart phones has driven the demand for FPC boards. The development of high-end servers has pushed the market space of HDI boards to expand. With the further development of technology, the downstream application areas of the PCB industry will continue to increase.