PI film exhibits superior performance and finds extensive applications in the downstream sector of flexible PCBs. Polyimide is available in various product forms, including film, foam, fiber, photosensitive polyimide, and polyimide matrix composites. Among these, PI film holds a significant share of over 70% and is considered the most crucial product form in the polyimide industry.
The manufacturing of PI film involves several processes, including resin polymerization, casting sheet formation, directional tensile optimization, and post-processing. The resulting products possess exceptional characteristics such as high heat resistance, strong mechanical properties, low dielectric constant, and low expansion coefficient. Due to these excellent properties, PI film is often referred to as the “gold film.” It finds extensive downstream applications in various high-tech industries, including consumer electronics, high-speed railways, wind power, aerospace, and flexible displays.
Foreign giants dominate the mainstream market, while China’s domestic production capacity in flexible PCB PI film started relatively late, resulting in gaps with foreign giants in terms of production capacity, processes, technology, and other aspects. Advanced production technologies are primarily mastered by the United States, Japan, South Korea, and other countries. Consequently, domestic production mainly focuses on low-end electric PI film, while high-end products still heavily rely on imports.
However, in recent years, with the accumulation of domestic technology and capital in China, several new material enterprises have started production of PI film, leading to a gradual expansion of domestic production capacity.
On a global scale, companies such as DuPont from the United States, Chongbuchi Chemical Industry Co., Ltd. from Japan, Toray Corporation from Japan, Ube Koyo Corporation from Japan, and SKC Kolon PI from South Korea collectively account for nearly 80 percent of the industry’s production capacity.
In recent years, with China’s accumulation of domestic technology and capital, several new material enterprises have entered the production of PI film, leading to a gradual expansion of domestic production capacity.
In the global market, companies from the United States, Japan, and South Korea, including DuPont from the United States, Chongbuchi Chemical Industry Co., Ltd. from Japan, Toray Corporation from Japan, Ube Koyo Corporation from Japan, and SKC Kolon PI from South Korea, collectively account for nearly 80 percent of the industry’s production capacity.
In recent years, the accelerated development of domestic professional manufacturers has enabled domestic flexible PCB PI film to gradually achieve import substitution. Among them, the product sales of Shenzhen Ruihuatai Film Technology Co., Ltd. accounted for approximately 6% of the global market, marking the formal entry of domestic PI film manufacturers into the ranks of global competition.
It is estimated that the domestic market size in China will reach 7.24 billion RMB, providing a broad space for import substitution. The compound growth rate of the global PI film market from 2017 to 2020 is projected to be nearly 8%.
By the end of 2019, the global PI film market size reached 1.8 billion U.S. dollars, showing an 11.1% increase compared to the previous year. It is expected to reach 2.05 billion U.S. dollars in 2020. Currently, the largest portion of the global downstream applications of PI films is in flexible PCB boards (FPC), accounting for about 48%. Specialty products, including aerospace materials and flexible display materials, constitute approximately 29% of the market, while the remaining applications account for 23%.
The growth of flexible PCB board (FPC) output drives the continuous expansion of the electronic-grade PI film market. Flexible copper clad FCCL serves as an important substrate for manufacturing flexible PCB boards. The thinness and flexibility of FPC make it an essential component in electronic products and equipment.
The global market size of FCCL increased from $2.64 billion in 2014 to $4.48 billion in 2019. As the main raw material of FCCL, the demand for electronic-grade PI film increased in tandem with FCCL. In 2019, the global demand for FCCL PI film reached 14,877.5 tons, with domestic demand reaching 4,869.0 tons.
In terms of output value, the domestic FPC output value increased from 29.07 billion RMB to 52.60 billion RMB during the period of 2014 to 2020, with a compound growth rate of 10.4%. While the growth rate of FPC demand has slowed down in recent years, the development of new downstream electronic products will inject new growth momentum into the flexible PCB industry.
The rapid growth of commercial aerospace and flexible screens is driving the expansion of the special-grade PI film market. In the aerospace sector, flexible PCB PI film has been utilized as rocket protection material due to its exceptional weather and radiation resistance.
Since 2015, with policy support and the development of private enterprises, the number of launch vehicles in China has steadily increased, resulting in significant growth in launch revenue. In 2019, the market scale of the entire commercial space industry chain exceeded 800 billion RMB, with a compound growth rate of 22.1 percent. As the raw material cost of a single launch vehicle can account for 35% of the total cost, the localization of raw materials is expected to substantially reduce manufacturing costs and drive the growth of special-grade PI film.
In the realm of flexible screens, flexible PCB CPI film serves as the screen cover material for most folding mobile phone manufacturers. With the continuous commercialization of flexible displays, foldable mobile phones have gradually emerged as a new form of mobile technology. According to relevant predictions, global shipments of foldable mobile phones are projected to reach 45.3 million units in 2024, with domestic shipments reaching 13.2 million units.
Since 2015, with the support of policies and the development of private enterprises, the number of launch vehicles in China has steadily increased, leading to rapid growth in launch revenue. In 2019, the market scale of the entire commercial space industry chain exceeded 800 billion RMB, with a compound growth rate of 22.1 percent. Considering that the raw material cost of a single launch vehicle can account for 35% of the total cost, localizing raw materials is expected to significantly reduce manufacturing costs and promote the growth of special-grade PI film.
In the field of flexible screens, flexible PCB CPI film is widely used as the screen cover material by most folding mobile phone manufacturers. With the ongoing commercialization of flexible displays, foldable mobile phones have gradually emerged as a new form of mobile technology. According to relevant predictions, global shipments of foldable mobile phones are projected to reach 45.3 million units in 2024, with domestic shipments reaching 13.2 million units. As the core component of foldable mobile phones, the demand for flexible cover plates will drive the continuous growth of special-grade flexible PCB PI film.
Furthermore, the consumer electronics sector is experiencing rapid momentum, creating a greater demand space for heat conduction grade PI film. Heat conduction graphite film, a downstream product of heat conduction grade PI film, is primarily used in LED substrates, electronic component heat dissipation, and other fields. It currently serves as the mainstream heat dissipation material in the consumer electronics industry.
In recent years, the domestic market scale of thermal conductive interface materials has gradually expanded, increasing from 660 million yuan in 2014 to 1.27 billion RMB in 2020, with a compound growth rate of 9.9%. The arrival of the 5G era has led to a rapid increase in domestic 5G mobile phone shipments, rising from 12.982 million units in 2019Q4 to 55.096 million units in 2020Q4. The advancement of 5G technology will drive a greater demand for heat-conducting flexible PCB PI film.
The market in the wind power and high-speed rail industries is steadily rising, contributing to the continuous expansion of the industrial scale for electrician grade flexible PCB PI film. Electrician PI film is primarily used in high-grade insulation systems for frequency conversion motors, generators, and is ultimately applied in fields such as wind power generation and high-speed rail transit.
In the wind power industry, China holds the position of the world’s largest wind power development market. By the end of 2020, the cumulative installed capacity of wind power in China reached 282GW, representing a year-on-year growth of 34.3% and accounting for 36% of the world’s total installed capacity. With the focus on new energy, the localization of the wind power industry chain will provide a broader market prospect for electrician grade flexible PCB PI film.
In the high-speed rail transportation industry, China boasts the largest high-speed rail mileage in the world, accounting for over 60% of the total. By the end of 2019, the domestic high-speed rail mileage had reached 35,000 kilometers, with 29,000 EMU locomotives in operation.
Considering the growth rates of global and domestic downstream industries, it is estimated that by 2023, the total scale of the global flexible PCB PI film market will reach 2.45 billion US dollars, while the domestic PI film market will reach 7.24 billion RMB. This includes 2.63 billion RMB for electronic PI film, 2.69 billion RMB for special PI film, 970 million RMB for electrician grade PI film, and 950 million RMB for thermal PI film.