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The rise of the domestic PCB industry chain, seize the 5G business opportunities

  • Author:o-lead
  • Source:o-leading.com
  • Release on:2018-07-04
In the strong support of the government and the hot money market, the PCB industry chain has been catching up with the leading group in recent years, regardless of its production scale or technical capabilities.

In the strong support of the government and the hot money market, the PCB industry chain has been catching up with the leading group in recent years, regardless of its production scale or technical capabilities.

The industry pointed out that the domestic PCB factory has a large capital advantage, and the capital market has more capital. In recent years, as the global PCB market conditions have improved, it is easier to collect funds for listing, and many leading manufacturers such as Shennan, Shenghong and Jing Wang and so on, the amount of capital has clearly exploded, and full of cash makes them not weak in expanding production capacity. For example, Shennan Circuit was listed in 2017, and raised RMB 1.268 billion in funds. In addition to the capacity expansion of the HDI board, it also has an ink on the IC carrier board. Jingwang recently announced that it will publicly issue convertible corporate bonds worth RMB 978 million. It was also approved by the China Securities Regulatory Commission in June. It is expected that this fund will also be used for continuous production.

In addition to continuing to expand production scale, the industrial technology of domestic players is also rushing to catch up, actively seeking international orders and cooperation opportunities. Shennan Circuit, which is mainly based on communication-related products, is one of Huawei's major suppliers. Under the leadership of the development of domestic communication brands, it is also following up and developing 5G related products. Yidun Electronics has been cultivating automotive electronics for many years and has gradually obtained certifications from major international companies such as Bosch and Continental. The production capacity will gradually increase this year, and it is expected to drive further growth in the company's revenue.

Domestic companies have always been good at expanding the market by acquiring overseas companies. This is also true in the PCB industry. Precision electronics manufacturer Dongshan Precision officially entered the Apple supply chain after acquiring the US soft board MFLX (Multi-Fineline Electronix) in 2016. The profitability has been greatly reversed. The net profit in 2017 reached RMB 519 million, a 16-fold increase from the 2015 RMB 0.31. Dongshan Precision announced in June that it plans to buy Multek, a PCB business group of Flextronics (FLEX), for US$29.25 million. It is expected to enable the company to achieve high-end PCB technology, and the subsequent growth of market competitiveness should not be underestimated.

The complete industrial cluster is also one of the reasons for the rapid development of domestic PCB factories, from the upstream copper foil substrate factory to the downstream assembly plant, such as the upstream copper foil substrate Rigid-flexible pcb factory Technology, glass fiber cloth factory  , equipment Factory , etc., are excellent manufacturers with a single quarter of RMB 1 billion revenue. With the introduction of new technical specifications such as 5G, the upstream technical capabilities and capacity performance are highly valued. This is a good opportunity for domestic upstream manufacturers to enter the competition.

In addition, the tightening of environmental protection policies in various parts of the country is also beneficial to the development of the entire industry. With the limited discharge policy to reduce the living space of small factories and eliminate low-quality production capacity, market supply and demand will be more stable, and at the same time, it will also enhance brand domestic The evaluation of the overall manufacturer improves the ability to compete for orders.

As for the recent trade war issue, because the latest tariff list contains many electronic products, whether Huawei will become the next target for the US government is still inconclusive, so the outside world is also very curious about whether the operation status of the domestic PCB factory will be affected. At present, most manufacturers are still cautious and neutral.