PCB: an important bridge connecting electronic components
PCB manufacturers, PCB designers and PCBA manufacturers explain PCB: an important bridge for connecting electronic components
China's electronic industry chain is becoming more and more perfect, with large scale and strong supporting capacity. PCB industry plays a key role in the whole electronic industry chain.
Printed Circuit Board (hereinafter referred to as "PCB") is a bridge that carries electronic components and connects circuits. It refers to a printed circuit board that forms point to point connections and printed components on a universal substrate according to a predetermined design. Its main function is to make various electronic components form a connection of a predetermined electrical circuit for transmission. As a key component of electronic products, PCB is almost used in all electronic products. It is an indispensable electronic component in modern electronic information products and is known as the "mother of electronic products". The manufacturing quality of PCB does not directly affect the reliability of electronic products, but also affects the integrity of signal transmission between chips. The development level of PCB industry can reflect the development speed and technical level of a country or region's electronic information industry to a certain extent.
The global PCB market presents the attribute of "cycle+growth", and the trend of downstream terminal electronization drives the long-term space of PCB upward. On the one hand, as a basic electronic component, PCB consumption continues to increase with the trend of downstream terminal electronization. On the other hand, PCB fluctuates under the influence of macroeconomic demand for electronic products. With the transfer of PCB industry, the market scale of PCB is also expanding. According to Prismark's statistics, the market space of the global PCB industry is 61.34 billion dollars, and it is estimated that the compound growth rate of the industry will be 4.3% from 2019 to 2024.
The important base material of PCB is copper clad laminate, which accounts for about 30% - 40% of the total PCB manufacturing in terms of cost.
The main raw materials of CCL are glass fiber cloth, wood pulp paper, copper foil, epoxy resin and other materials, of which copper foil is the main raw material for manufacturing CCL, accounting for 80% of the materials. The CCL industry is an industry with large capital demand and relatively high concentration.
According to Prismark's survey data, the global CCL industry CR10 is up to 75%, CR5 is up to 52%, with a high degree of concentration, of which the market share of Shengyi Technology is 12%. Major companies in the industry have strong bargaining power, while the PCB industry CR10 downstream of CCL is 26%, which is a fully competitive industry. In recent years, PCB industry has developed rapidly. Whether the number and scale of upstream service enterprises, timeliness of delivery or other supporting services have been able to meet the needs of the industry. A relatively centralized and stable supply pattern has been formed in the upstream.
The downstream application fields of PCB are relatively broad. In recent years, the downstream industry has become more diversified. The product applications cover communication electronics, consumer electronics, computers, automotive electronics, industrial control, medical equipment, national defense, aerospace and other fields. Communication, automotive electronics and consumer electronics account for 60% of the total. The accelerated construction of 5G base stations will drive the rapid development of PCB industry chain. The business revenue of PCB industry is mainly determined by the downstream demand. For PCB manufacturers, their profit margins are closely related to their product structure, production scale, yield and production line automation level, in addition to the downstream demand and upstream supply: the profit level of high-level PCB products such as HDI and flexible circuit boards is generally higher than that of traditional PCB products; Large scale production is conducive to PCB manufacturers to dilute fixed costs and improve profit margins.
In addition, PCB manufacturers can improve per capita output and optimize profitability by improving the level of production line automation.
The market share of the global PCB industry is relatively scattered. From the regional perspective, the domestic PCB industry is concentrated in the Pearl River Delta, Yangtze River Delta and Bohai Rim, with the Pearl River Delta as the focus. At present, there are about 1500 PCB enterprises in Chinese Mainland, which are mainly distributed in the Pearl River Delta, Yangtze River Delta, Bohai Rim and other areas with high concentration of electronic industry, large demand for basic components, good transportation conditions, water and electricity conditions.
PCB industry is a key electronic basic industry. A complete industrial chain enables PCB enterprises to purchase raw materials quickly and respond to customer needs quickly, so that they can move forward steadily on a sound development track.
With the continuous promotion of Made in China 2025, a number of global local enterprises have emerged in emerging markets such as mobile Internet, Internet of Things, big data, cloud computing, artificial intelligence, and driverless cars, providing more development opportunities for the supporting electronic manufacturing industry. With the acceleration of the 5G commercial era, the construction of network infrastructure such as base stations is accelerating. 5G communication equipment has a greater demand for communication materials, major operators will invest more in 5G construction in the future, and communication PCB will have a huge market in the future. Since 2016, thanks to automotive electronics, the demand for consumer electronics has risen, and the global PCB output value has increased year by year. China has gradually become the main production base of printed circuit boards in the world. According to Prismark's prediction, by 2022, the output value of China's PCB will exceed 40 billion dollars, and by 2024, the output value is expected to reach 43.8 billion dollars. There is great room for market scale improvement. PCB manufacturers, PCB designers and PCBA manufacturers explain PCB: an important bridge for connecting electronic components.