Overview of PCB industry development

News     |      2021-10-11 10:26

Abstract: In 2018, China’s circuit board output value increased from 50.5% in the previous year to 52.4% of the world. China has become the world’s largest PCB producer and is currently one of the regions that can provide the largest PCB production capacity and the most complete product types in the world. As the global PCB industry center, it is very necessary to understand and pay attention to the development trend of the PCB industry.

 

table of Contents

1. PCB industry characteristics

2. Development history

3. Industry Overview

 

1. PCB industry characteristics

1.1 Non-standard products

The PCB industry has a wide variety of downstream products, which are mainly designed and produced according to the individual needs of downstream industry products. That is to produce customized products instead of standard products. Based on this characteristic, companies in the industry basically “determine production based on sales”, organizing and arranging production according to customer orders.

1.2 Low degree of industry concentration

The downstream customers of the industry are in a relatively scattered industry and are less affected by a single application industry. There are many manufacturers in the industry, the market concentration is not high, and the market competition is relatively sufficient.

Therefore, the PCB industry is low in concentration, which is a characteristic of the PCB industry. As long as they have their own main markets and have their own niches, even small businesses can live well. However, because of the need for environmental protection, companies have to purchase relevant environmental protection equipment, so companies that are too small will also be eliminated because the revenue cannot cover the environmental protection costs.

Although the concentration of the PCB industry is increasing, the range is limited, because the demands of various downstream sub-industries are different, and the products vary greatly.

HDI board

1.3 The PCB industry does not have cyclical and seasonal characteristics.

(1) Periodicity: As PCB products have a wide range of downstream applications, covering consumer electronics, communication equipment, automotive electronics, medical electronics, industrial control equipment, smart security, clean energy, aerospace and military products, and other social and economic fields, so Its periodicity is less affected by a single industry, and changes mainly with the fluctuations of the macroeconomy and the overall development of the electronic information industry.

(2) Seasonality: PCB due to the comprehensive influence of factors such as holiday consumption and downstream customers’ preparation in advance in response to peak consumption seasons, the production and sales scale of enterprises in the industry in the second half of the year is generally higher than that of the first half, but the overall seasonal characteristics will not Too obvious.

 

2. Development history

2.1 International development

Throughout the history of PCB development, the global PCB industry has undergone a development change from “European-led” to “Asian-led”.

In 2018, China’s circuit board output value increased from 50.5% in the previous year to 52.4% of the world. China has become the world’s largest PCB producer and is currently one of the regions that can provide the largest PCB production capacity and the most complete product types in the world.

On the whole, despite a large number of local PCB companies, there is still a certain gap between their corporate scale and technical level and foreign-funded companies that set up branches in mainland China, and their competitiveness is slightly weak.

2.2 The country is also shifting

In recent years, with the increase in labor costs in coastal areas, some PCB companies have begun to move their production capacity to central and western cities with better basic conditions, such as Huangshi in Hubei, Guangde in Anhui, and Suining in Sichuan.

The Pearl River Delta region and the Yangtze River Delta region are expected to maintain their leading position in the PCB industry in the future due to their talent advantages, economic advantages, and a complete supporting environment for the industrial chain, and will continue to develop in the direction of high-end products and high value-added products. Due to the internal relocation of PCB companies, the central and western regions will gradually become an important base for my country’s PCB industry. However, low-end PCBs are generally transferred, and high-end PCBs are still in the Yangtze River Delta and the Pearl River Delta.

 

3. Industry Overview

3.1 Industry share

There are currently about 2,800 PCB companies in the world, mainly in China, Taiwan, Japan, South Korea, the United States, and Europe. From the perspective of global PCB revenue rankings, foreign companies such as Japan, Taiwan, and South Korea are at the forefront. From the perspective of global PCB industry concentration, the total market occupancy rate of the world’s top 10 printed circuit board manufacturers in 2017 was 33.5%, and the market occupancy rate of Shennan Circuits, which ranked first among domestic manufacturers, was only 1.4%. The industry’s market concentration Low, the market competition among PCB manufacturers is fierce.

Similar to the development pattern of the global PCB industry, my country’s printed circuit board industry also presents a fragmented competition pattern. The scale of enterprises is generally small, and the number of large PCB companies is small. According to the 2017 statistics of the China Printed Circuit Industry Association, there are about 1,300 domestic PCB manufacturers (excluding Taiwan and Hong Kong).

In terms of geographic location, my country’s printed circuit board companies are relatively concentrated, mainly in the Pearl River Delta, the Yangtze River Delta, and the Bohai Rim. The output value of the Yangtze River Delta and the Pearl River Delta accounts for about 90% of the total output value of mainland China. , And high-end products and high value-added products are also mainly concentrated in the Yangtze River Delta and Pearl River Delta regions.

PCB industry

 

3.2 Multi-layer boards, HDI boards, flexible boards will become the mainstream

From the perspective of product structure, multi-layer boards still occupy the mainstream position in the current PCB market. With the rapid development of technology in the electronic circuit industry, the integrated functions of components are becoming more and more extensive, and the high-density requirements of electronic products for PCBs are more prominent. High-end PCB products such as high-layer boards, HDI boards, flexible boards, and packaging substrates are gradually occupying Market dominance.

According to Prismark’s forecast, for a period of time in the future, multi-layer boards will still maintain the primary market position and provide important support for the overall development of the PCB industry; it is expected that by 2020, high-layer boards, HDI boards, flexible boards and packaging substrates Such high-tech PCBs will become the mainstream of the market.

From the perspective of product structure, the proportion of flexible boards, HDI boards, and packaging substrates with higher technical content has increased year by year, but it is still relatively low. However, there are still few domestic manufacturers that can produce.

Driven by demand for automotive electronics, communication servers, etc., multilayer boards continue to grow steadily, and their proportion is expected to further increase; the intelligentization of electronic products in the mobile Internet era is developing towards miniaturization and multi-module characteristics, based on HDI wiring compared to ordinary multilayer boards The density advantage of these downstream products will increase the demand for HDI boards. High density, thinness, bending resistance, and flexible structure will become the future development trend of PCB, and the proportion of HDI and flexible boards will increase.

3.3 Communications, computers, and consumer electronics have become the three major application areas of PCB

In terms of downstream applications, communications, computers, and consumer electronics have become the three major application areas of PCB, which are also the fastest growing areas of PCB applications

In 2018, communications, computers and peripherals, and consumer electronics still maintained the top three positions in the market, accounting for 30%, 20%, and 13%, respectively. Although the growth of the global automotive market has slowed down, new trends in the development of automotive electronics, smart driving, and new energy vehicles have driven the rapid growth of the automotive PCB market. In 2018, the automotive application market increased by 3% compared with the previous year, almost catching up with consumption. The market share of electronics shows strong growth.