The Rise Of China In The Series: PCB Industry

- Mar 10, 2018 -

Under the situation of globalization, the division of labor in industrial chain internationalization is becoming more and more clear. With the advantages of labor and capital, China is beginning to occupy the leading position in the middle and low end of the industrial chain. This report focuses on the PCB (printed Circuit Board) industry. The printed circuit board industry is the upstream of almost all consumer electronics products, whether mobile phones, computers, tablets, displays, etc. This report describes the operation of the printed circuit board industry in China. Through detailed analysis, I can draw the following conclusions:

China is the world's largest producer of PCB, but the scale of enterprises compared to Japan and South Korea and other traditional power smaller, industry concentration is low; the low-end PCB products Chinese PCB enterprises in the production of more mature, in the high-end PCB products R & D and manufacturing are at the initial stage, the lack of competitiveness, and foreign funded enterprises occupy a large part of the market, squeezing the living space of local enterprises, this is due to the strength of the full number of local enterprises less, further investment in research and development.

Due to the limited raw materials and complex processing technology, the upstream materials of PCB enterprises such as copper foil are in short supply, the bargaining power of the middle reaches is strong and the industry is facing great price pressure, and the upstream high-end technology and products are monopolized by foreign giants. Because of the high degree of dependence on imports and the lack of competitiveness of domestic enterprises, the industry is striving to develop to the direction of research and development of high-end technology to replace import. At the same time, PCB industry's bargaining power to downstream is general, which is influenced by the change of downstream demand.

In terms of industrial development, high-end products such as packaging substrates and medium-high-end products such as HDI boards will become important directions. In 2016, with the global PCB industry down, China's PCB industry continued to grow at a rate of 1.43%. In South Asia, India and Thailand, Southeast Asian countries have also shown their huge room for development with rapid growth. When China's labor, land and other costs rise, a large proportion of foreign enterprises will be transferred from China to these countries.

Conclusion: on the one hand, we are optimistic that China will continue to play the role of a big producer and marketer in the PCB industry; on the other hand, we believe that in the future market competition of China's PCB industry, there will be high-end products, large-scale enterprises, and extended industrial chain. With the characteristics of uniform geographical distribution and so on, Chinese enterprises will gradually gain advantages by optimizing the concept of technology upgrading ahead of time, thus becoming a real electronic power outside of a large output country. Based on this, from the perspective of the industrial chain, Recommend the PCB enterprise with R & D strength and advanced technology, and focus on: Shennan Electric Road, King Wang Electronics, Health Technology, Shenghong Technology and so on.

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