It is estimated that 5G will bring more than 60 billion incremental opportunities to PCB boards.
First, the number of base stations will increase dramatically as 5G USES high frequency band for signal transmission.There are two ways to add base stations: acer and small base stations.According to the white paper on China's 5G industry and application development in 2018 issued by sadie consulting, it is estimated that the increment of 5G macro stations will reach 3.6-5 million and the number of small base stations will reach 7.2-10 million. The total number of base stations will be 3.3-4.6 times that of 4G base stations, laying a solid foundation for mass growth.
Moreover, 5G is bound to cause a wave of replacement, which will drive a blowout of PCB board shipping demand. The ministry of industry and information technology predicts that 5G mobile phones will be launched in the second half of 2019, and domestic 5G mobile phone shipments may reach 144 million in 2022.
Secondly, due to the information explosion and the demand of high transmission rate in the era of 5G, Massive MIMO's large-scale application leads to the increase of antennas, which will generate greater demand for PCB board and open wider growth space with the increase of PCB board area.The high frequency band of 5G will also force the high frequency of PCB board, which greatly increases the value of single board.In addition, the data blowout generated when 5G is officially commercialized will force communication equipment to improve data processing capacity, and PCB board is expected to develop towards multi-layer development, and the price will also rise accordingly.
Caitong securities said that changes in base station construction brought about by technological innovation in 5G era will create a new incremental market for electronic products, and PCB as the carrier of components will benefit deeply.According to a conservative estimate, 5G will create 61.8 billion yuan of incremental space for PCB in five years, and China's PCB industry is expected to usher in massive growth opportunities.
Zhengye technology customers have obvious advantages and deep benefits from 5G pull
High-frequency PCB is a segment with rigid demand opportunities in the era of 5G. However, domestic technology in this field is insufficient, and production is mostly dependent on overseas manufacturers. Only a handful of domestic r&d personnel are available.
What is more interesting is the downstream PCB manufacturers in China. They have strong cost management ability and high-end PCB board manufacturing capacity. Huawei, the leading global communication equipment manufacturer, has a certain opportunity.
Zhengye technology, as the two leading PCB suppliers strongly promoted by the institution, is also among the beneficiaries.Double line layout 5G application, the company has shengyi technology, shennan circuit, ultrasonic technology and other well-known customers in the industry.
PCB precision processing and testing equipment developed, produced and sold by the company has a high market share;In PCB production equipment business, the company focuses on providing the industry with overall technical solutions.
Under the pressure of 5G high-frequency, PCB board material costs rise, manufacturers must pay more attention to improve the precision and precision of material processing, which also makes the company's main products PCB precision processing detection equipment application scenarios more broad.
According to zhengye technology's semi-annual report, PCB business of the company achieved revenue of about 240 million yuan in the first half of this year, up 11.56% year on year.One of the reasons is that the technical upgrading and upgrading of the company's laser cutting machine and other intelligent equipment have enhanced its recognition and market competitiveness in the PCB industry, and brought incremental performance to the company.