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PCB industry development favorable factors

  • Author:o-leading
  • Source:o-leading.com
  • Release on :2018-09-20


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1.The price of upstream raw materials has risen, and PCB manufacturers have raised prices.

Since 2017, the prices of raw materials such as copper foil, epoxy resin and glass fiber have risen sharply, pushing the price of copper clad laminates to soar, and the production cost of PCB has increased significantly.

With the rising tide of upstream raw materials, downstream PCB manufacturers have raised the price of PCBs in order to cover costs and ensure profitability. PCB manufacturers adjusted PCB prices to varying degrees from August to September 2017, with the highest increase of 15%.

Through the price increase strategy, PCB manufacturers successfully transferred the rising cost of upstream raw materials to the downstream, and the net profit was not affected too much. The performance of several PCB manufacturers showed signs of acceleration in the semi-annual report, ushered in the performance turning point, and the market performance was far stronger. In the broader market.


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2.environmental protection is stricter, backward PCB production capacity is accelerated

With the country's emphasis on environmental protection issues, the environmental protection policy has been tightening in the past six months. For the high-pollution and high-emission industries such as PCB, the rectification efforts are relatively large. At the end of 17th, Kunshan issued a “Comprehensive Suspension Notice”, setting off a wave of restrictions on production.

The tightening of environmental protection policies will trigger the accelerated withdrawal of PCB backward production capacity in mainland China. In the future, small PCB companies that fail to meet environmental protection requirements will be unable to carry out environmental protection requirements and gradually withdraw from the market due to their limited financial capacity.

For the large PCB companies that meet environmental protection requirements, many listed companies have taken environmental protection indicators, and the market concentration is expected to accelerate.

Along with the sharp increase in the prices of upstream raw materials and the tightening of environmental protection policies, many PCB small factories have been unable to withstand the pressures and shut down, and the industry concentration has accelerated.

In the process of reshuffling the PCB industry(pcb board manufacturer china), leading enterprises have the inherent advantages in technology and capital, and can reduce costs and increase market share by expanding production capacity and upgrading technology.