Environmental Policy Tightening Across The Region Is Expected To Accelerate The PCB Industry Reshuffle, Share To The Leading Enterprises

- Jul 26, 2018-

In 2017, the global PCB market is worth 61.1 billion us dollars, up 3.8%.

From the point of distribution, PCB industry sales of the top 10 companies mainly Japan, Taiwan manufacturers, industry revenue top 10 manufacturers are respectively by Taiwan tripod ($3.588 billion), xin xing ($2.24 billion), huatong ($1.778 billion), jian ding ($1.51 billion), Japan qisheng ($3.223 billion), sumitomo ($1.134 billion), cane warehouse ($1.099 billion), American TTM ($2.658 billion) and Austria AT&S ($1.093 billion).

At the top of the list is dongshan precision, which ranks 12th in revenue worldwide.

In addition, the Top 15 manufacturers have a total market share of about 40%, and the industry leader, zhending, has a market share of less than 6%, which indicates that the PCB market itself is not highly concentrated and relatively scattered.

According to the data of Prismark in January 2018, from the regional perspective, in 2017, the output value of PCB industry in Europe, America, Japan, Korea, Taiwan and mainland China was 47.05, 52.56, 68.60, 75.36 and 29.732 billion us dollars respectively.

In terms of trend, the output value of PCB in mainland China will increase by 9.6% in 2017, and continue to lead the global market.

However, the PCB industry in Europe, America, Japan, Japan and Taiwan has entered a mature period, and the output value of PCB has maintained a stable or slow decline, and the overall trend is shrinking.

The leading manufacturers in mainland China do not have the top 10 manufacturers in global revenue, while PCB accounts for more than half of the world's output value, which is mainly caused by industrial transfer and overseas PCB factories set up in China.

Mainland China's PCB output grew rapidly from less than 10 per cent in 2000 to more than 50 per cent in 2017.

Like the panel industry, the PCB industry has experienced capacity transfer from Europe and the us to Japan to Taiwan, and now to China.

The 1990s were the peak of the PCB industry in the United States. In 2000, the PCB industry in Japan reached a peak. Subsequently, Taiwan enterprises benefited from the explosion of the local OEM industry and the smart phone industry.

At present, global PCB production capacity is shifting to mainland China due to cost considerations of overseas giants and stringent environmental policies in developed regions.

From the perspective of the trend, the income of Japanese PCB enterprises continues to decline, and the profit is on the edge of loss. The net profit of major leading Taiwanese enterprises is generally on the downward trend.

But on the whole, the mainland is still mainly engaged in low-end production capacity, and there is still room for technological catch-up.

In recent years, the environmental protection policy has become stricter, and the withdrawal of production capacity will bring PCB price fluctuation and accelerate the reshuffle of the PCB industry.

In July 2018, omway electronics, jiantao group and other PCB plants have issued price increase notice.

In recent years, China's environmental protection policy has been gradually tightened. From December 2017, kunshan will be restricted, followed by zhuhai, Shanghai, shenzhen, strict inspection, etc., small production scale, low emission index, low production efficiency, and large pollution are expected to face the risk of shifting to the central and western regions or even "supply-side reform".

Environmental policy tightening across the region is expected to accelerate the PCB industry reshuffle, share to the leading enterprises.