Industry chain analysis of PCB industry in 2018

- Oct 20, 2018-

The upstream raw materials of PCB mainly include copper clad sheet, copper foil, copper ball, semi-cured sheet, gold salt, ink, dry film and other chemical materials, and the downstream applications include communication equipment, computer, consumer electronics and automobile.Since 2016, the whole PCB industry has recovered, and the development of the industrial chain has also been transformed accordingly.

 

PCB industry chain upstream

The upper, middle and lower reaches of the PCB industry are clearly divided, and the upstream industries mainly include raw material suppliers such as copper clad plates and copper foil.Generally speaking, the raw material cost of the PCB industry accounts for more than 50% of the total operating cost, which is the largest part of the impact on the PCB enterprise's gross profit space.Taking shennan electric circuit as an example, its direct material cost reached 2.349 billion yuan in 2017, accounting for 55.60% of the operating cost, which is far higher than the direct labor, manufacturing and outsourcing costs.

In the past two years, the effect of rising price of raw materials has been prominent, which has had some impact on PCB enterprises.Taking copper foil as an example, copper foil has entered the price increase cycle since the second half of 2016, with a peak value of up to 110 yuan /KG. In 2017, the price has been corrected, but it is still at a high level.However, with the capacity adjustment of copper foil capacity, a smooth price transmission mechanism will enable leading copper clad sheet and PCB manufacturers with bargaining advantages to pass on the pressure of rising raw material costs, thus gaining greater room for performance flexibility improvement.

PCB industry chain downstream

The downstream of PCB industry covers almost all electric circuit products, and the most core and largest application areas include communication equipment, computer, consumer electronics and automobile electronics.With the development of electrification and automation in human society, PCB has been applied more and more widely.

In 2016, communication, automotive electronics and consumer electronics were the three areas with the highest demand for PCB in China's market.Among them, the communication field has the greatest demand for PCB application, accounting for 35%.Car electronics accounted for 16%.Consumer electronics came in third, at about 15%.In other fields, the proportion is below 10.