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PCB industry transfer accelerates PCB faucet to meet growth opportunities

o-leading o-leading.com 2018-04-12 10:54:40
 The trend of the eastward movement of the industry is one of the best in mainland China. The PCB industry's center of gravity continues to shift to the Asian region, while the Asian region's production capacity is further transferred to the mainland, forming a new industry structure. With the continuous transfer of production capacity, China has become the world's highest PCB production capacity. According to Prismark's estimation, in 2017 China's PCB output value will reach 28.972 billion U.S. dollars, accounting for more than 50% of the global total output value.

    Applications such as data centers will increase HDI demand, and FPC will have a vast future space. The data center is facing high-speed, large-capacity, cloud computing, and high-performance features. The construction demand is increasing rapidly, and the demand for servers will also increase the overall demand for HDI. The popularity of mobile electronic products such as smart phones will also boost the demand for FPC boards. With the trend of smart and lightweight mobile electronic products, FPC's advantages of light weight, thin thickness, and bending resistance will be beneficial to its wide application. The demand for FPC in the display module, touch module, fingerprint identification module, side keys, and power button of smart phones is increasing.

    "Increase in raw material prices + environmental protection" under the increased concentration, leading manufacturers to meet the opportunity. Upstream prices of copper foil, epoxy resin, ink and other raw materials in the industry are driving cost pressures for PCB manufacturers. At the same time, the central government has vigorously carried out environmental protection inspections, implemented environmental protection policies, cracked down on chaotic small-scale manufacturers, and imposed cost pressures. With the rise in raw material prices and the tightening of environmental protection inspectors, the reshuffle in the PCB industry has brought about an increase in concentration. Small manufacturers have weak downstream bargaining power, and it is difficult to digest upstream prices. Small and medium-sized PCB companies will withdraw because of the narrowing profit margins. In this round of PCB industry reshuffling, leading companies have the technological and financial advantages that are expected to pass. Expansion of production capacity, mergers and acquisitions, product upgrades and other means to achieve scale expansion, with its efficient production processes, excellent cost control base, directly benefiting from increased industry concentration. The industry is expected to return to rationality and the industrial chain will continue to develop healthily. 

    New applications to promote industry growth, 5G era is approaching. 5G new communication base stations have a lot of demand for high-frequency circuit boards: Compared to the number of base stations with a million-level in the 4G era, the scale of base stations in the 5G era is expected to exceed 10 million. The high-frequency high-speed boards that meet the requirements of 5G have wider technical barriers than traditional products, and also have higher gross margins.

    The trend of automotive electronics has driven the rapid growth of automotive PCBs. As the degree of automotive electronics has deepened, the demand area for automotive PCBs will gradually increase. Compared with traditional automobiles, new energy vehicles have higher requirements for electronicity. The cost of electronic devices in traditional limousines accounts for about 25%, and in new energy vehicles it reaches 45% to 65%. Among them, BMS will become a new growth point for automotive PCBs, and high-frequency PCBs equipped with millimeter-wave radars put forward a lot of rigid demands.

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