China Topscom posted article on China Business Intelligence Network News about Latest Development status and trend Forecast for China's printed Circuit Board Industry in 2020.Printed circuit board (PrintedCircuitBoard, referred to as "PCB"), also known as printed circuit board, not only provides mechanical support, wiring and electrical connection for fixed assembly of electronic components, but also provides solder resistance graphics for automatic soldering, bearing many functions such as digital and analog signal transmission of electronic equipment, power supply and RF microwave signal transmission and reception. Printed circuit boards can be divided into single panel, double-layer board, multi-layer board, IC board, special board, flexible board, HDI board and so on.
From the perspective of the industrial chain, the printed circuit board industry is in the upper reaches of the electronic information manufacturing industry. The upstream of printed circuit board mainly includes the production of raw materials such as copper clad laminate, copper ball, copper foil, semi-curing sheet and so on. downstream is widely used in consumer electronics, communication equipment, industrial control, automotive electronics, computers, medical equipment, aerospace and other electronic information manufacturing industries. Its manufacturing quality not only directly affects the reliability of electronic information products, but also affects the integrity of signal transmission between electronic components. As an indispensable basic component of electronic information products, printed circuit board is called "the mother of electronic products".
China encourages the development of printed circuit board industry.
Printed circuit board is an indispensable basic component of modern electronic equipment, is an important part of a variety of electronic products, and plays a key role as a connecting link in the electronic information industry chain. The electronic information industry is a strategic, basic and leading pillar industry of the national economy, which is of great strategic significance to the development of the national economy and national security. therefore, our government and industry authorities have launched a series of industrial policies to support and encourage the printed circuit board industry. In particular, in 2018, the National Bureau of Statistics issued the Classification of Strategic emerging Industries (2018), which included "high-density interconnected printed circuit boards, special printed circuit boards, flexible multilayer printed circuit boards" as the electronic core industry.
The output value of Chinese mainland PCB continues to expand.
After 2000 with the transfer of the manufacturing industry led by the electronic information industry to the Asia-Pacific region the global PCB manufacturing center has grown rapidly in the Asia-Pacific region the output value of China's PCB has increased significantly and the status of China's PCB industry continues to strengthen. According to Prismark, the output value of PCB in Chinese mainland region increased from US $26.1 billion in 2014 to US $32.7 billion in 2018, with an average compound annual growth rate of 5.8%, and is expected to reach US $40.6 billion in 2023.
China's PCB industry has entered a stage of high-quality development.
Although Japanese and South Korean manufacturers have begun to invest in Vietnam, India, Thailand and other Southeast Asian regions, Chinese mainland has stable domestic demand growth and sound industrial supporting, and the rapid development of upstream and downstream jointly promotes the sustained increase of Chinese mainland's PCB share. After years of development and accumulation, China's PCB industry has realized the complete industrial chain layout of "copper foil, fiberglass cloth, epoxy resin" copper clad laminate "PCB", has the supporting capacity of related demand, and has formed a number of local manufacturers with certain scale and competitiveness. As China's economic development has entered a new normal, China's PCB industry has also changed from a high growth stage driven by factors and investment to a high-quality development stage driven by innovation and continuous optimization and upgrading of the industry.
Fierce competition among enterprises in China's PCB industry.
The domestic PCB industry is consistent with the global market, and the market is relatively scattered and competitive. On the one hand, most of the Taiwan-funded and Japanese-funded enterprises that occupy the leading position in the global market have subsidiaries in China, on the other hand, domestic enterprises are growing and their competitiveness is increasing day by day.
According to the 18th (2018) ranking of China's electronic circuits published by CPCA, The top 10 Chinese domestic PCB enterprises in 2018 are as follows: Suzhou Dongshan Precision Manufacturing Co., Ltd., Shennan Circuit Co., Ltd., Shenzhen Jingwang Electronics Co., Ltd., Chongda Technology Co., Ltd., Shenzhen Xingsen Fast Circuit Technology Co., Ltd., Shenghong Technology (Huizhou) Co., Ltd., Shenzhen Wuzhu Technology Co., Ltd., Shantou Ultrasonic printed Board Co., Ltd., Zhuhai founder printed Circuit Board Development Co., Ltd., Xiamen Hongxin Electronic Technology Co., Ltd.
The industrial distribution gradually radiates from the coast to the inland.
At present, Chinese mainland PCB enterprises are affected by the industrial cluster effect, mainly distributed in the Pearl River Delta, Yangtze River Delta and other areas with high concentration of electronic information industry, large demand for basic components and good transport, water and electricity conditions. According to the statistics of Guangdong Circuit Board Industry Association, Guangdong Province accounts for about 60% of the total output value of Chinese mainland PCB, and the number of top 100 PCB enterprises and listed companies are absolutely in the leading position.
In recent years, with the influence of factors such as the rise of labor costs in Guangdong Province, the continuous improvement of environmental protection requirements and the introduction of relevant supporting policies in inland areas, the PCB industry began to gradually transfer to the provinces and cities with better inland industrial conditions, especially the PCB production capacity of Jiangxi, Hunan, Hubei and other economic and industrial belts showed a momentum of rapid growth. Jiangxi Province, as an important area of coastal cities extending to the central part, with unique geographical advantages and rich water resources, coupled with local governments to promote the electronic information industry-related investment, has gradually become the main transfer base of PCB enterprises in coastal cities.
The relocation of PCB enterprises helps to make full use of the different advantages of different regions and improve the optimal allocation of resources. it is an important measure to promote PCB enterprises to achieve good cost control and maintain competitive advantage. In the future, the central and western regions are expected to establish and improve the PCB-related industrial chain, gradually develop into a major manufacturing base, and promote the transformation of Pearl River Delta, Yangtze River Delta and other regions into more high-end PCB R & D and manufacturing centers.
There are two major development trends in PCB industry.
1. Domestic enterprises continue to innovate to improve the market share of middle and high-end products.
As an important part of the electronic information industry, the printed circuit board manufacturing industry is strongly supported by the national industrial policy. The 2016 guidance Catalog for key products and Services of Strategic emerging Industries, published by the National Development and Reform Commission in February 2017, clearly lists "high-density interconnected printed circuit boards, flexible multilayer printed circuit boards and special printed circuit boards" as electronic core industries in the guidance catalogue. The Foreign Investment Industry guidance Catalog (revised in 2017) announced by the National Development and Reform Commission and the Ministry of Commerce in June 2017 clearly included "high-density interconnection laminated boards, multi-layer flexible boards, rigid flexible printed circuit boards and sealing boards" in the catalogue of industries that encourage foreign investment. The gradual introduction of relevant national industrial policies has laid a solid policy foundation for the high-end development of the domestic printed circuit board industry.
In recent years, the devices in the field of electronic information such as consumer electronics, industrial control, automotive electronics, medical equipment and so on continue to develop in the direction of light and thin, intelligent, while the speed of information transmission is accelerated and the number of functional components is increasing, so the requirements for high-end products of PCB are increasing. In the new stage, PCB continues to develop towards high system integration and high performance. According to Prismark data, domestic high-tech PCB will develop rapidly in the future. Taking IC board as an example, the compound growth rate of domestic IC board output value from 2016 to 2021 is expected to be 3.55%, far exceeding the global growth rate of 0.14%. In the future, the domestic import substitution of middle and high-end PCB will be one of the main directions of industry development.
2. Factors such as automatic production, scale effect and environmental protection promote the centralization of the industry.
In recent years, the growth rate of global and Chinese PCB industry tends to be stable. In terms of product types, the global PCB industry is moving towards the direction of high precision, high density and high reliability, constantly reducing its size and improving its performance in order to adapt to the development of downstream electronic equipment industries, which means that enterprises will further increase their investment in technology research and development and equipment. In terms of production efficiency, domestic labor costs are rising and competition is becoming increasingly fierce. Improving efficiency and reducing costs have become important issues faced by PCB enterprises. Therefore, automatic and intelligent production is becoming the direction of PCB industry upgrading. In the current market competition environment, small and medium-sized PCB enterprises are often faced with greater financial pressure, while the leading PCB enterprises have made great progress through listing and financing. In the past five years, after obtaining sufficient funds through the capital market, the top domestic PCB enterprises continue to improve their production scale, innovate product technology, obtain more orders, and further concentrate their market share.
In addition, with the increasing awareness of environmental protection in recent years, the implementation of the Environmental Protection tax Law on January 1, 2018 is more stringent, environmental protection departments continue to strengthen the supervision of environmental governance, and PCB enterprises invest more in environmental protection. In the long run, the stricter environmental protection policy is conducive to the further standardization of the PCB industry, provide more market space for enterprises whose production and operation are in line with environmental standards, and accelerate the promotion of PCB industrial concentration.