Domestic circuit board industry status and industry characteristics

China is a global electronic product manufacturing center and the world’s largest consumer market for electronic products. This has provided the domestic PCB industry with sufficient market depth. At the same time, the domestic PCB industry chain is well-equipped and the labor resources are sufficient to make domestic PCB companies still have Obvious competitive advantage.

    China is the world’s most important PCB production base. According to statistics, in 2017, Asia accounted for about 90% of the global PCB industry’s total output value, of which China accounted for more than 50% of the global PCB industry’s total output value. The domestic PCB industry has entered a stage of sustained and steady growth. In 2017, the output value of China’s PCB industry reached 29.732 billion US dollars.

    In 2017, the number of domestic PCB industry companies was about 1,300, mainly distributed in the Pearl River Delta, the Yangtze River Delta, and the Bohai Rim. The PCB output value of the Pearl River Delta and the Yangtze River Delta accounts for about 90% of the total output value of mainland China. At the same time, due to the impact of factors such as labor costs and environmental protection requirements in coastal areas, the domestic PCB industry is gradually shifting to provinces and cities with better inland industries, such as Jiangxi Province.

    The PCB industry has regional, cyclic, and seasonal characteristics. Regionally, due to the high level of economic development in East and South China coastal areas, and the electronics and information industry has been relatively developed, the talent, economy, and industrial chain advantages are relatively prominent. Therefore, the industry companies in the above two regions continue to move towards high-end products and high-end products. Development of value-added products.

    In recent years, due to factors such as rising labor costs and stricter environmental protection policies, companies in the industry have stepped up their efforts to expand production capacity in regions with better basic conditions in the Midwest.

    In terms of periodicity, the PCB industry has a wide range of downstream applications, covering consumer electronics, communications equipment, automotive electronics, medical electronics, industrial control equipment, smart security, clean energy, aerospace and military products, and other social and economic fields. The circuit board industry is less affected by a single industry, and its periodicity mainly manifests as fluctuations with fluctuations in the macro economy.

    In terms of seasonality, due to the combined effects of holiday consumption and advance stocking by downstream customers in response to the peak consumption season, the production and sales scale of enterprises in the industry in the second half of the year is generally higher than in the first half, but the overall seasonal characteristics will not be too obvious.

    In addition, the downstream application area of ​​the PCB industry is still expanding. The popularity of smart phones and other mobile phones has driven the increase in demand for FPC boards. The development of high-end servers has driven the market space of HDI boards. With the further development of science and technology, downstream applications in the PCB industry will continue to increase in the future.

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