- Mar 08, 2018 -
In the context of globalization, the division of labor in the internationalization of the industrial chain is becoming more and more clear. China relies on the advantages of labor and capital. PCB (printed Circuit Board) industry is the upstream of almost all consumer electronics, whether it is mobile phone, computer, tablet, display, etc.
China is the world's largest producer of PCB, but its size is smaller than that of traditional powers such as Japan and South Korea, and industry concentration is low.
The production of PCB products at the middle and low end of Chinese PCB enterprises is relatively mature, and the R & D and manufacturing of high-end PCB products are in their infancy, and they are not competitive enough. Foreign and Taiwan-funded enterprises occupy a considerable part of the market. Squeezes the local enterprise's survival space, this is also because the strength sufficient local enterprise quantity is small, waits for further research and development investment.
Aware that the upstream materials of PCB enterprises such as copper foil are limited in raw materials and complex in processing technology, and that there is a phenomenon that supply exceeds supply. The PCB industry has a strong bargaining power over the middle reaches. The high-end technologies and products in the upper reaches 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.
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