1. Printed circuit board market size
In recent years, with the continuous introduction of foreign advanced technology and equipment, China s printed circuit board industry has developed rapidly, and the output value has grown rapidly. At present, China has become the country with the fastest growth in the output value of printed circuit boards in the world.
The data shows that the output value of printed circuit boards in China has increased from US$29.716 billion in 2017 to US$35.249 billion in 2020, with an average annual compound growth rate of 5.9%, higher than the global average growth level. The proportion of the output value of mainland printed circuit boards in the total output value of the global printed circuit board industry has also increased from 31.1% in 2008 to 53.8% in 2020, ranking first in the world.
With the rise of domestic brands of printed circuit boards in China, domestic enterprises are actively expanding production. On February 9, 2022, Shennan Circuit (111.120, -1.64, -1.45%) disclosed that the company issued 107.62 yuan / share to 19 Issued 23,694,500 shares for specific objects, raising a total of 2.55 billion yuan, mainly for high-end flip-chip IC substrate product manufacturing projects to enhance the company’s core competitiveness, improve revenue levels and profitability;
February 8, 2022 , Xingsen Technology (12.050, -0.06, -0.50%) board of directors reviewed and approved the “Proposal on Investing in the Construction of Guangzhou FCBGA Packaging Substrate Production and R&D Base Project”, and will invest about 6 billion yuan in two phases to build a monthly production capacity of 20 million pieces The FCBGA packaging substrate intelligent factory, this investment project is expected to become a new growth point of the company’s performance after the investment project is put into production.
While domestic enterprises are actively expanding production, they will continue to drive the trend of China’s future printed circuit board industry to transfer to China. It is estimated that the output value of the printed circuit board industry in 2022 will reach 38.936 billion US dollars. Prismark also predicts that the output value of China’s printed circuit board industry will reach 460.4% in 2025. billion, accounting for more than half of the global output value.
2. Printed circuit board subdivision product structure
At present, my country’s printed circuit board subdivision products mainly include six types of multi-layer boards, flexible boards, HDI (high-density interconnection boards), double-sided boards, single-sided boards, and packaging substrates. The data shows that multi-layer boards account for the largest proportion of my country’s printed circuit board subdivision products, reaching 45.97%, far exceeding other products; followed by flexible boards, accounting for 16.68%; HDI accounted for 16.59%. In addition, the proportions of double-sided, single-sided, and package substrates were 11.34%, 6.13%, and 3.29%, respectively.
3. Market share of downstream applications of printed circuit boards
The main application areas of printed circuit boards include communications, computers, automotive electronics, consumer electronics, industrial control, lighting, military aviation, medical equipment and other fields. The development of downstream industries represented by new energy vehicles, servers, IC substrates, and Mini LEDs is the driving force for the growth of the printed circuit board industry.
Judging from the market share of downstream applications of printed circuit boards, my country’s printed circuit boards currently account for the largest proportion of applications in the fields of communications and computers, reaching 30% and 26% respectively. Second. Automotive electronics and consumer electronics accounted for 15% and 13% respectively. The continuous innovation and development of electronic terminal products promote the continuous emergence of new electronic products in the market, which is beneficial to the stable development of the printed circuit board industry.
In addition to excellent circuit board Enchantments, new electronic products also need suitable and high-quality components to escort your PCB circuit board. However, the procurement of electronic components is a major problem faced by the majority of electronic companies. The process is time-consuming and labor-intensive, and the efficiency is extremely low.
4. The stabilization of raw material price fluctuations is conducive to the improvement of the profitability of the printed circuit board industry
The material cost of printed circuit boards accounts for up to 60%, of which copper clad laminate (CCL) accounts for the highest proportion, accounting for about 30% of the cost of printed circuit boards. The three major raw materials of CCL are copper foil, electronic grade fiberglass cloth, epoxy resin They account for 42.1%, 19.1% and 26.1% of their costs respectively, and the total cost accounts for nearly 90%.
Copper prices have been rising all the way since April 2020, reaching a peak of $10,725/ton in May 2021, and then entering a stage of fluctuating decline, currently between $9,000-10,000/ton, and prices are expected to loosen further in 2022. In 2021, the price of epoxy resin will fluctuate and rise sharply. At present, it is about 27,000 RMB/ ton. With the introduction of environmental protection equipment and the improvement of foreign climate, it is expected that epoxy resin will gradually fluctuate and stabilize in the future. Electronic yarn accounts for 90% of the cost of electronic glass fiber cloth.
According to Zhuochuang Information, the price of glass fiber yarn will gradually start to fall from October 2021, and the overall quotation has been less than 17,000 yuan / ton. At present, the downstream 7628 electronic cloth in the market The market price dropped to about 6 RMB/meter.
As the prices of the three major raw materials gradually fluctuate and stabilize, the price increase of copper clad laminates will slow down, and the profitability of the printed circuit board industry is expected to improve.
5. The development of new technologies promotes the increase in the production capacity of printed circuit boards and technological progress
The rapid development of new technologies promotes the increase in the production capacity of printed circuit boards. With the maturity of new technologies such as 5G, cloud computing, and AI, the construction of data centers has accelerated, and server shipments have continued to rise.
According to IDC data, global server shipments will reach 12.2 million units in 2020, with a shipment value of $91.01 billion. will continue to grow. Server demand drives the incremental market for printed circuit boards. According to Prismark’s forecast, the global output value of server printed circuit boards will increase from $5.692 billion in 2020 to $6.765 billion in 2024.
The rapid development of new technologies promotes the advancement of printed circuit board technology. 5G high-frequency technology puts forward higher requirements for circuits, and the communication frequency band is further improved. In order to meet the needs of high frequency and high speed, and to deal with the problems of poor millimeter wave penetration and fast attenuation, the performance of printed circuit boards will also continue to develop, so as to find substrate materials that meet the high frequency application environment and realize the quality of my country’s printed circuit board industry. leap.
In the future, in the context of accelerated penetration of emerging technologies such as 5G communication, cloud computing, big data, artificial intelligence, industry 4.0, and the Internet of Things in China, it is expected that my country’s printed circuit board industry will enter a new cycle of technology and products.
6. Downstream applications drive the development of the printed circuit board industry
In order to adapt to the development of the downstream electronic equipment industry, the investment of enterprises in technology research and development and equipment continues to increase, and printed circuit boards continue to move closer to the direction of high precision, high density and high reliability, and continue to reduce size and improve performance. The application fields of printed circuit boards are becoming more and more extensive, especially in the field of automotive electronics.
Printed circuit boards are used in four major systems: power control system, safety control system, body electronic system, and communication. At the same time, with the development of autonomous driving technology and new energy vehicles, automotive printed circuit boards will usher in a golden period of development. According to data from the China Automobile Association, China’s new energy vehicle sales in December 2021 (4.230, 0.03, 0.71%) It reached 531,000 units, a year-on-year increase of 114.11% and a month-on-month increase of 18%.
The China Automobile Association predicts that sales will exceed 5 million units in 2022. Compared with traditional fuel vehicles, the three core systems of battery, motor and electronic control of new energy vehicles have increased the demand for printed circuit boards. According to Prismask’s forecast, the global output value of printed circuit boards for vehicles is expected to reach 8.8 billion US dollars in 2024.
It can be seen that the rapid development of various electronic equipment industries will further drive the development of the printed circuit board industry.