Analysis of the competitive landscape of Chinese printed circuit board industry in 2016

Faced with fierce global competition pressure and rapid technological changes, China’s printed circuit board industry is speeding up its pace to strive for higher levels and achievements.

Printed circuit board manufacturers are mainly distributed in six regions including China, Taiwan, Japan, South Korea, North America and Europe. The global printed circuit board industry is relatively fragmented, with many manufacturers. There is no market leader yet.

Chinese printed circuit board industry also presents a fragmented competition pattern. The scale of enterprises is generally small, and the number of large printed circuit board companies is less.

The printed circuit board industry has a consistent big cycle with semiconductors and the global economy. In the past two years, the industry has been affected by the global economic and computer sales downturn, and the PCB industry’s prosperity has been at a low level. Since the first half of 2016, the global economy has returned to an upward trend, the semiconductor cycle has been on the rise, and the PCB industry has shown signs of recovery. At the same time, copper foil and fiberglass cloth, which are the main costs of the industry, are still declining in price after experiencing a sharp drop in the past year, which has ushered in a large bargaining space for PCB companies. And the large-scale investment in domestic 4G has become a catalyst that drives the industry’s prosperity beyond expectations.

At present, Chinese printed circuit board industry substitutes are mainly manifested in product substitution in sub-industry. Rigid PCB market share is shrinking, and flexible PCB market share continues to expand. The development of electronic products towards high density will inevitably lead to higher levels and smaller BGA hole spacing, which will also puts forward higher requirements for the heat resistance of materials. In the current strategic transformation period of industrial chain integration and collaborative development and innovation, high-density PCBs, new functional and intelligent PCBs, product heat dissipation, precision layout, packaging design brought by the development of light, thin, fine and small Put forward more stringent requirements for the innovation of upstream CCL industry.

The 2016-2021 printed circuit board production industry market competitiveness survey and investment prospect forecast report show that the total sales revenue of China’s top 100 printed circuit board companies accounted for 59% of the country’s total printed circuit board sales. The total sales revenue of the top 20 companies accounted for 38.2% of the national printed circuit board sales revenue. The total sales revenue of the top 10 printed circuit board companies accounted for approximately 24.5% of the national printed circuit board sales revenue, and the market share of the number one company was 3.93%. Similar to the development pattern of the global printed circuit board industry, Chinese printed circuit board industry is relatively competitive, and there is no oligopoly by a few companies, and this development trend will continue for a long time in the future.

The main upstream industries of printed circuit boards are copper clad laminates, copper foils, fiberglass cloth, inks, and chemical materials. Copper clad laminate is a product made by pressing glass fiber cloth and copper foil together with epoxy resin as a fusion agent. It is the direct raw material of printed circuit boards and the most important raw material. The copper clad laminate is etched, electroplated, and laminated into a printed circuit board. In the upstream and downstream industrial chain structure, copper clad laminates have strong bargaining power, which not only has a strong voice in the procurement of raw materials such as fiberglass cloth and copper foil, but also can increase costs in a market environment with strong downstream demand. The pressure is passed on to downstream printed circuit board manufacturers. According to industry statistics, copper clad laminates account for about 20%-40% of the entire printed circuit board production cost, which has the greatest impact on the cost of printed circuit boards.

It can be seen from the above that there are a large number of upstream manufacturers of printed circuit boards in China, the raw materials are relatively stable, and upstream suppliers have poor bargaining power in the printed circuit board industry, which is conducive to the development of the printed circuit board industry.


Post time: Oct-20-2020