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

- Aug 04, 2018-

With strong official support and a capital market full of hot money, the PCB industry chain has been gradually catching up with the leading group in recent years in both production scale and technical capacity.

Industry pointed out that the domestic PCB factory possesses larger capital advantage, capital market liquidity, the market better, in recent years as the global PCB listed to raise money is easy, compared with the past, many leading manufacturers such as shennan, macro, JingWang etc, capital are clearly outbreak growth, cash-rich make their position on the capacity expansion.

For example, shennan circuit was listed in 2017 and raised 1.268 billion yuan. Besides the investment in the capacity expansion of HDI board, it also has some ink in IC board.

Jingwang recently announced that it will issue 978 million yuan of convertible corporate bonds, which will also be approved by the China securities regulatory commission in June and is expected to be used to continue production.

In addition to the continuous expansion of production scale, the domestic industry is also rapidly catching up with the industrial technology, actively seeking international orders and cooperation opportunities.

Shennan circuit, which mainly focuses on communication-related products, is one of huawei's main suppliers. Driven by the sound development of domestic communication brands, it is also following up the development of 5G related products.

Yidong has been engaged in automotive electronics for many years, and has gradually won the certification of Bosch, Continental and other large international factories. Its production capacity will gradually expand this year, which is expected to drive the company's revenue growth.

Domestic enterprises have always been good at through mergers and acquisitions overseas enterprises to develop the market, which in the PCB industry, precision electronics manufacturers dongshan precision in 2016 America's soft panel factory MFLX (Multi - Fineline Electronix), formal into the supply chain, profit ability, sharply in 2017, net profit reached 519 million yuan, from 2015 RMB 0.31 yuan soared more than 16 times.

Dongshan announced in June that it planned to buy Multek, a unit of flextronics' PCB business group, for $29.25 million, which is expected to give the company access to advanced PCB technology.

Industry groups also is domestic complete PCB factory can be one of the reasons for the high speed development, from the upper reaches of the copper foil substrate assembly plant and plant to the downstream, upstream copper foil substrates such as factory have good science and technology, glass Jin Anguo ji, : CNC equipment factory, and so on, are all with RMB 1 billion quarterly revenue more than abilities good manufacturers.

With the introduction of new technical specifications such as 5G, the upstream technical capacity and capacity performance are highly valued, which is also a good opportunity for domestic upstream manufacturers to enter the competition.

In addition, the tightening of environmental protection policies in various parts of China is also beneficial to the development of the whole industry. With the reduction of small factories' living space and the elimination of low-quality production capacity, the market supply and demand will be more stable.

As for the recent trade war, it is not clear whether huawei will be the next target for the U.S. government because the latest tariff list contains many electronic products, so it is very curious whether the operation of domestic PCB factories will be affected.

At present, most manufacturers are still cautious and neutral attitude, shennan circuit said, at least the current stage of the company's operations have not changed significantly, but the subsequent development of the situation remains to be observed.