PCB industry chain upstream
The upper, middle and lower reaches of the PCB industry are clearly divided, and the upstream industries mainly include copper clad plate, copper foil and other raw material suppliers.
Generally speaking, the raw material cost of PCB industry accounts for more than 50% of the total operating cost, which is the largest part of the impact on the gross profit space of PCB enterprises.
Taking shennan circuit as an example, in 2017, its direct material cost reached 2.349 billion yuan, accounting for 55.60% of the operating cost, far higher than the direct labor, manufacturing cost and outsourcing cost.
In the past two years, the price increase effect of raw materials has been prominent, bringing certain impact to PCB enterprises.
Take copper foil as an example. Since the second half of 2016, copper foil has entered a price increase cycle, reaching a maximum of 110 yuan /KG.
However, with the adjustment of copper foil production capacity, the unimpeded price transmission mechanism will enable leading copper cladding board and PCB manufacturers with bargaining advantages to pass on the pressure of rising raw material costs in line with the trend, thus obtaining a large space for performance flexibility.
PCB industry chain downstream
The downstream of the PCB industry covers almost all electrical circuit products. The core and most productive applications include communications equipment, computers, consumer electronics and automotive electronics.
With the development of electrification and automation in human society, PCB has been widely used.
In 2016, communication, automotive electronics and consumer electronics are the three areas with the highest demand for PCB in China's market.
Among them, the PCB application demand is the communication field, accounting for 35%.
Second, automotive electronics, at 16 percent.
Consumer electronics came in third, accounting for about 15 percent.
Other areas are under 10.
Below is a detailed look at the application of the first three fields:
In the communication field, different applications have different requirements on PCB. Generally speaking, FPC and HDI are more used for mobile communication terminals, while large area and high level rigid PCB are more used for communication devices.
Compared with the rigid copper clad plate, FPC is popularly known as "soft plate", and the core layer is generally a flexible substrate such as polyimide (PI) and polyester film.
FPC features light weight, flexible, high degree of wiring, achieving the integration of component assembly and wire connection.
FPC was first used in the space shuttle, military equipment and other fields. Due to its light weight, softness and folding resistance, it rapidly penetrated into civil use at the end of the 20th century and was mainly used in mobile phones, laptop computers, PDA, LCD and other consumer electronic products.
HDI is called high density interconnection printed circuit board (HDI). It is mainly characterized by carrying more devices and realizing more functions in the smallest possible area.
The development of HDI has driven the development of 2G-5G mobile communication terminals and made it possible for high-performance touch-screen phones.
HDI is also used in avionics and military equipment.
In 2016, the global output value of HDI board has reached 7.68 billion us dollars, accounting for 14% of the output value of PCB, and the compound annual growth rate is 2.70%.
HDI requires high wiring density and minimizes the amount of space the motherboard takes up inside a smartphone.
HDI is made of ordinary core plate superimposed product layer, which requires the use of drilling, hole plating and other processes to realize the connection between any layer.
Therefore, HDI needs to be as thin and multi-layered as possible to greatly increase the density of components and to save the wiring area required by PCB.
According to the number of adjacent layers directly connected through the blind hole, HDI can be divided into first-order HDI, second-order HDI, high-order HDI, etc.
HDI laser drilling, electroplating hole plug and other processes are difficult, high added value.
-- automotive electronics
In recent years, the PCB for automotive electronics has remained stable, but driven by intelligent driving and new energy technology, the automobile is more and more like an electronic product, which is expected to become a new driving force for the development of PCB industry.
It is estimated that the combined annual growth rate of automotive electronic PCB market will reach 5.6% from 2017 to 2022.
However, automotive electronics do not have the same obvious generational standards as mobile communication devices, and devices are not periodically replaced.
At the same time, the automobile supply chain is relatively closed, such as ADAS system and new energy vehicle electronic system, which are relatively insensitive to price, but have high requirements for PCB yield and zero tolerance for quality accidents.
As a result, it is unlikely that there will be a brief, explosive growth in demand for the car board in the next few years.
-- consumer electronics
The PCB industry has seen a decline in the size of the market in the last two years, mainly due to the decline of consumer electronics drivers such as PCS, tablets and smartphones.
It is an indisputable fact that the traditional consumer electronics market tends to be saturated. The growth of many categories has slowed down or even suffered a decline, thus slowing down the development of the PCB industry.
From 2017 to 2022, consumer PCB demand growth is expected to be 2.5%, which will further weaken the industry growth.
The above data and analysis sources refer to the analysis report on the market outlook and investment strategy planning of China's printed circuit board manufacturing industry from 2018 to 2023 released by the forward-looking industry research institute.