PCB Manufacturing In China Is Losing Its Low Price Advantage

- Nov 17, 2018-

As the basic component of electronic information industry chain, PCB is praised as "the mother of electronic products".Looking distribution map of electronics industry in China, with the deepening of the development pace of mainland China, also in PCB industry following the same steps to follow up the layout, including 1994 in the pearl river delta development zone, 2000 older triangle development zone, in 2005 and 2010, the central link bohai sea development zone west began to promote the development of the west triangle development zone, everywhere can see the figure of PCB industry forward.

According to relevant data, the continent-board industry, which has been flourishing all over the world, is still the largest PCB manufacturing site in the world.In 2014, the global output value of PCB reached usd 57.437 billion, up 2.3% year on year.Among them, China's PCB contributed us $26.1 billion in output value, with a year-on-year growth rate of 6.0%, the highest in the world.China's domestic and foreign PCB accounts for 45.5 percent of the world's total, accounting for nearly half of the world's total.However, in the global PCB industrial structure, although Chinese manufacturing has been high expectations, but the performance is not satisfactory, and has been in the middle and lower reaches for a long time, essentially unable to get rid of the label of "OEM power".Especially now the global economy began to slow recovery, with India, the Philippines, Indonesia, Thailand and so on as representative's emerging market is flourishing, combined with the PCB raw material prices continue to rise, domestic continuously strengthen the environmental protection and energy saving control of capacity, "made in China" is gradually losing the low cost advantage, development speed and quality of natural no longer strong.

Another factor that cannot be ignored is that China's circuit board industry mainly covers the middle and low-end parts (double-sided and multi-layer boards). It is an indisputable fact that the product type is short of single innovation kinetic energy and the gap between developed countries becomes larger.Compared with 2013, domestic multi-panel output increased by 3.9% and single/double panel output increased by 2.1% in 2014, mainly used in PC, NB, communications, consumer electronics and other fields.Output value of HDI board increased by 2.1%, mainly applied to mobile terminal products such as mobile phones.Although the demand of various circuit boards has increased, the growth of soft board and IC board is not optimistic and still lags behind Japan, South Korea, Taiwan and other regions.And with so many mainland Chinese manufacturers pushing into the market, fierce price competition has become increasingly fierce.How to face the complicated and changeable market environment has become an important subject for industry personnel to solve.