Since July, PCB manufacturers, including omv electronics and kingtao group, have been issuing price increase notices. The reason is that due to environmental protection and cost factors, enterprises have no choice but to increase price.Under the double pressure of environmental protection and price increase of raw materials, more and more PCB factories are "bowing down" and choosing price increase.From the restrictions in kunshan of jiangsu province at the end of 2017 to the restrictions in zhuhai and Shanghai, and now to the strict inspection in shenzhen, the whole PCB industry will face a new situation after this wave of price increases. The overall price increases are expected to be 20-30%.
While Chinese manufacturers have announced price increases, Taiwanese firms say they will not follow easily.Digitimes reports that there is still a lot of unused capacity in PCB, and it's not easy to follow the price hike at this stage.Indeed, due to unsatisfactory market demand, so far there is still a lot of spare capacity, and the price increase of copper foil base plate factory in the second quarter of this year is not obvious.Therefore, the industry agreed that it is too difficult to follow price increases at this stage.
However, with the freezing of 5G R15 standards and the acceleration of the commercial process, the authors believe that PCB spare capacity will be improved.In terms of the overall environment of the electronics industry, with China accelerating into the 5G era, the consumer electronics industry will usher in a new round of development boom, especially the demand for high-frequency and high-speed copper clad boards will show exponential growth.
According to essence securities, 5G will bring both the demand and the added value of PCB/ copper-clad products with the once-in-a-decade upgrade.The 5G "five key technologies" proposed by China's imt-2020 (5G) promotion group will bring great changes to the industry chain ecology of wireless access network devices:
1)5G radio frequency will introduce Massive MIMO(Massive antenna array) technology, and the number of 5G base stations is significantly higher than that of 4G.Two-thirds of the output value of mobile communication base station antenna will be transferred to the PCB industry chain. Therefore, it is estimated that the value of high-frequency PCB/ copper clad board used only for 5G base station antenna will be more than 10 times that of 4G.At present, many telecom operators have begun to purchase 5G equipment and begin to deploy 5G network.
2)5G network will carry greater bandwidth traffic, equipment investment such as routers, switches and IDC will increase, and the demand for high-speed PCB/ copper-clad will also increase significantly.In addition to the increase in demand and consumption, high-performance equipment will adopt high value-added high frequency (antenna) and high speed (IDC/ base station) board materials, bringing both the added value and consumption of PCB/ copper-clad industrial chain.
3)5G communication equipment will be a core driver for the PCB industry for the next three years.The PCB industry has entered a mature stage, and the traditional application market has been saturated. The key to growth lies in the emerging market segment of the downstream.According to prison mark, automobile and communication equipment will connect consumer electronics and become a new engine for industry growth in the next five years, and communication PCB will be a core driving force for industry growth in the next three years.
5G brings the opportunity of localization of high-end materials from cycle to growth.Copper-clad PCB is the main material for PCB manufacturing. In the 5G era, domestic companies with high-end product production capacity are expected to gradually break the foreign monopoly, dilute the original cycle attributes and usher in the improvement of both performance and valuation.
This wave of PCB price boom will along with the strengthening of environmental protections and the rising cost of raw materials, after that, 5 g commercial brings higher demand for may provide enough power for PCB prices continue to rise, the Taiwan factory of the spare capacity can be make full use of, when a wave of Taiwanese vendors will not catch up