PCB Industry Rebound Domestic PCB Industry Potential Huge

- Sep 22, 2018-

PCB product structure is complex, and product category keeps evolving according to terminal demand: terminal electronic products change to light, short and multi-functional requirements, which promotes the product performance and integration of electronic components to improve rapidly.Generally speaking, from single and double panel, multi-layer board, HDI board (low order to high order), interconnect board of any layer, to SLP type board, package base board, integration degree is higher and higher, design and processing is more complex.

Multi-layer board, FPC and HDI board are the main force in the market, and high-end PCB products have great room for growth.According to prison mark's statistics, the combined proportion of multi-layer board, FPC and HDI board was up to 74% in the PCB market in 2017, and the compound growth of FPC, HDI and multi-layer board was expected to reach 3% and 2 by 2021.8 percent and 2.4%.The cycle of various PCB products is mainly related to terminal demand.

In 2017, driven by the rising price of raw materials and the change of downstream demand, the global PCB market showed a higher than expected growth, with the annual output growth as high as 8.6 percent, more than the growth rate of the whole electronic system products, and far more than the GDP growth rate.The demand that drives the downstream market of PCB in 2017 mainly comes from:

(1) the unit price of innovation and upgrade of high-end smart phones is increased, which stimulates the output value of the whole PCB market to increase.Apple's iPhoneX interior design has been greatly changed. The main board adopts the more advanced MSAP stacking scheme, and the single-machine value has increased by nearly three times, reaching over $20.Innovative appearance and features such as comprehensive screen and 3Dsensing have directly increased the single machine demand of rigid flexible bonding board and flexible FPC board, and the single machine value of FPC board has increased to over $40.Other non-apple smartphones have quickly followed apple's innovation in the introduction of new products, vigorously promoting the use of new concepts such as full screen, 3Dsensing and wireless charging.Although the growth rate of overall smartphone shipments is still declining, the value of individual components has increased rapidly, pushing the output value of mobile phone board to exceed the expected growth.

(2) the demand for the main board of the miner and the chip board of the miner was boosted by the boom of virtual currency mining.In 2017, the price of virtual currency, led by bitcoin and ether, exploded. In the whole year of 2017, the price of bitcoin increased by 14 times. The upstream mining equipment was in short supply, and the price of mining machine increased with the investment boom.The cost of the mining machine is mainly composed of the main board and chips. The main board used for the main board is mainly 4, 6 and 8 layers of multi-boards. The price of common multi-boards is 600-800 yuan per square meter.Seal loading plate for miner chip is mainly provided by Japanese and Taiwanese pallet manufacturers.Although the market is widely expected to be unsustainable, the short-term impact on the performance of PCB is significant, with the monthly demand exceeding 560,000 square meters. It is estimated that the size of the board for mining machine in 2017 is about 12.$400 million.

(3) the services/storage market in the computer sector has begun to improve, driving further expansion of the value of the entire computer system.As cloud, data center and artificial intelligence all require huge storage space and powerful computing capacity at present, the scale of service/storage market will grow rapidly in the future with the gradual penetration of Internet of things.Computer PCB is mainly used to cover the base board with 6-16 layers of multilayer board and memory chip.

In the short run, apple mobile phone for PCB production and technology will continue into 2018, the influence of SLP class loading board has become the trend of high-end mobile phone motherboard, FPC flexible plate of carrying on the new rate in 2018 will continue to improve, but the market popular just scratch combined with board thanks to the rapid expansion of production capacity, mainly use the original inventory in the first half of 2018.Storage, service with video card board and IC package substrate demand continued to increase.In the medium and long term, the third large-scale development of the PCB industry will be driven by the further penetration of automotive electronics and the resonance age of communication, consumer electronics, computer and other fields promoted by technologies such as 5G and AI.