The PCB Industry Market May Reach Us $60 Billion In 2020!

- Jul 27, 2018-

According to the historical situation, the PCB industry is sensitive to the update and replacement of downstream electronic products. The next development cycle is expected to benefit from the upgrading of automotive electronics, consumer electronics micro-innovation and communication equipment.

Under the imbalance of supply and demand, the global PCB industry boom recovery


The upstream and downstream of PCB industry is very clear, which can be divided into three parts: upstream raw materials, mid-stream copper plating board and downstream PCB manufacturing.

According to the historical situation, the PCB industry is sensitive to the update and replacement of downstream electronic products. The next development cycle is expected to benefit from the upgrading of automotive electronics, consumer electronics micro-innovation and communication equipment.

Under the imbalance of supply and demand, the global PCB industry boom recovery


The upstream and downstream of PCB industry is very clear, which can be divided into three parts: upstream raw materials, mid-stream copper plating board and downstream PCB manufacturing.

The downstream application of PCB is extensive, and it is now entering the boom period of the industry. There is a certain momentum of volume price rise in HPC, communication, consumer electronics and automotive electronics.

The demand side involves a lot of space in other industries and I'm not going to go into too much detail here. The mobile phone motherboard alone is a huge demand point.

The demand of many sectors in the downstream of PCB welcomed the booming market, but globally, the supply end caused the production capacity tension due to various reasons, leading to the imbalance between supply and demand.

On the supply side: global industrial transfer, multiple pressures lead to tight supply


Industrial transfer shaped the global pattern, production capacity has become a reality, good for domestic enterprises.

China is the largest industrial base for global production capacity transfer. From 2009 to 2016, China's PCB output grew at a faster rate than the rest of the world.

Tighter environmental controls have exacerbated supply shortages


PCB industrial chain each link related to heavy metal pollutants such as copper, nickel, silver, and in the process of the presence of large amounts of chemical reactions that will produce waste gas, waste water, solid waste, the environmental impact of large, from the kunshan production events that took place at the end of 2017 will see that with the increase of environmental protection regulation, PCB industry sewage, waste disposal, substandard enterprises will be eliminated directly, thus exacerbating the situation in short supply.

Imbalances in supply and demand create growth opportunities


The direct result of the imbalance between supply and demand is the price increase. According to the above analysis, we can know that upstream is the source of the overall supply and demand imbalance in the industry.

PCB bibcock has good ability to pass on price, copper clad rise in price, the price will be conductive to the downstream pressure of PCB vendor, and PCB maker to ensure their profitability, on the one hand, can control the manufacturing cost by production control, on the other hand can also increase the price pressure conduction to the client, so the global PCB maker in the industry chain is the most stable gross margin level.

Focusing on Chinese manufacturers, caitong securities believes that in an upward industrial development environment, the following domestic leading manufacturers are expected to see a burst of performance in the upside cycle, thanks to increased domestic substitution and concentration.