PCB Industry Transfer Accelerates PCB Leading Growth Opportunity

- Nov 17, 2018-

The trend of industry moving eastward is unique in mainland China.PCB industry has been shifting to Asia, while the production capacity in Asia has been further transferred to the mainland, forming a new industrial pattern.With the continuous transfer of production capacity, China mainland has become the region with the highest PCB capacity in the world.The output value of PCB in China will reach $28.972 billion in 2017, accounting for more than 50 percent of the global total, according to prison mark's estimate.

Data center and other applications to improve HDI demand, FPC future space is vast.The data center is developing towards the characteristics of high speed, large capacity, cloud computing and high performance, and the construction demand surges, among which the server demand will also pull up the overall HDI demand.Demand for the FPC board will also be boosted by a boom in mobile devices such as smartphones.Under the trend of intelligent and thin mobile electronic products, FPC's advantages such as light weight, thin thickness and resistance to bending will be conducive to its wide application.The demand of FPC in the display module, touch module, fingerprint identification module, side key and power key of smart phone is increasing.

"Raw material price increase + environmental protection supervision" under the concentration, leading manufacturers to welcome opportunities.The rising price of raw materials such as copper foil, epoxy resin and ink in the upstream of the industry will transmit cost pressure to PCB manufacturers. Meanwhile, the central government will vigorously carry out environmental protection inspection and implement environmental protection policies to combat the chaotic small manufacturers and impose cost pressure.Under the background of rising raw material prices and strict environmental inspectors, PCB industry reshuffle brings increased concentration.Small producers on downstream bargaining power is weak, difficult to digest the upstream prices, small and medium-sized enterprise for PCB will be because of the profit margins are narrow and the exit, in this round of PCB industry reshuffle, bibcock company has the technology and capital advantage, is expected to pass to expand capacity, acquisition and product upgrading way to realize scale expansion, with its efficient production process, good cost control based on directly benefit industry concentration.The industry is expected to return to rational, sustainable and healthy development of the industrial chain.

New applications drive industry growth, and 5G era is getting closer.5G new communication base stations have a great demand for high-frequency circuit boards: compared with the number of base stations at the level of millions in the 4G era, the base stations in the 5G era are expected to exceed the level of tens of millions.Compared with traditional products, the high frequency and high speed plates meeting 5G requirements have wide technical barriers and higher gross profit rate.

Automobile electronic trend, driving automobile PCB rapid growth.With the deepening of automobile electronics, the demand area of automobile PCB will gradually increase.Compared with traditional cars, new energy vehicles have higher requirements on the degree of electronic technology. The cost ratio of electronic devices in traditional premium cars is about 25%, while in new energy cars it is 45% to 65%.Among them, BMS will become a new growth point of automobile PCB, and high frequency PCB equipped with millimeter wave radar will put forward a large number of rigid demands.