1. The Yangtze River Delta and the Pearl River Delta are prominent regions for the development of domestic electronic technology products and are also the cradles of IT and PCB industries.
2. These areas benefit from unique geographical, talent, and economic advantages and are currently undergoing significant industrial upgrading.
3. PCB mid- and low-end products are gradually relocating to other regions within the mainland, while high-end and high value-added products remain concentrated in the Yangtze River Delta and the Pearl River Delta.
4. In the future, the domestic PCB industry is likely to evolve into a “two-hour economy” model, with the Pearl River Delta and the Yangtze River Delta serving as hubs for high-end PCB manufacturing, and equipment and materials research and development.
5. The Yangtze River region, encompassing Chongqing, Sichuan, Hubei, Anhui, and other top global electronics companies, is expected to lead as an industrial belt within this two-hour economy framework.
6. The Bohai Bay Economic Circle, centered around northern Dalian, and the industrial structure of the Northwest Guangdong Processing Zone, particularly after the opening of the Hong Kong-Zhuhai-Macao Bridge, will also play significant roles in this evolving landscape.
7. Market development trends
1. From the perspective of the number of layers and development direction of PCBs, the PCB industry is divided into six main product segments: single-panel, double-panel, conventional multilayer boards, flexible boards, HDI (High-Density Interconnect) boards, and package substrates.
2. Considering the four cyclical dimensions of the product life cycle—introduction period, growth period, maturity period, and decline period—single-panel and double-panel boards are in a decline period as they are less suited to the current trend towards short, light, and thin electronic products. Their proportion is gradually decreasing. Developed regions like Japan, South Korea, and Taiwan have largely ceased domestic production of these products, with many major manufacturers explicitly stating they will no longer accept single and double panels.
3. Conventional multilayer boards and HDI boards are in the mature stage. Their process capabilities are well-developed, and their product value is high. Most major PCB manufacturers are now fully committed to these primary supply directions. Only a few Chinese manufacturers, such as Ultrasonic Electronics, have the production technology. High-density flexible boards and rigid-flex boards are still not mature enough for mass production by many manufacturers. They are in the growth stage but are more suited for digital products than rigid boards. The growth of flexible boards is significant, marking a key future development direction for major manufacturers.
4. Packaging substrates used in ICs are relatively mature in developed electronics industries like Japan and South Korea, both in R&D and manufacturing. However, they are still in the technological exploration stage in China. Only a few manufacturers, such as Ibiden (Beijing) Co., Ltd., ASE Semiconductor (Shanghai) Co., Ltd., and Zhuhai Doumen Chaoyi Electronics Co., Ltd., produce them in small batches. This is due to the underdevelopment of China’s IC industry. However, as multinational electronics giants continue to relocate IC R&D institutions to China and domestic IC R&D and production levels improve, packaging substrates are poised for significant market growth, marking a visionary development direction for the industry.
5. China’s rigid boards (single-sided, double-sided, multilayer, and HDI boards) account for 70% of the total PCB market, with multilayer boards representing the largest proportion at 50%, followed by flexible boards at 15.6%. Due to oversupply pressure, most manufacturers have engaged in a price war, resulting in output value growth falling short of expectations.
6. Regarding the future development trend of domestic PCB products, the increase in output is slightly less than the increase in sales. This is mainly due to the gradual shift in product structure towards multilayer and high-precision boards. China’s multilayer and HDI boards are in the growth stage of the industry, with expanding scale and maturing technology. Multilayer boards remain the market’s mainstream, while HDI boards are experiencing rapid growth driven by demand for upgraded electronic information products.
2. These areas benefit from unique geographical, talent, and economic advantages and are currently undergoing significant industrial upgrading.
3. PCB mid- and low-end products are gradually relocating to other regions within the mainland, while high-end and high value-added products remain concentrated in the Yangtze River Delta and the Pearl River Delta.
4. In the future, the domestic PCB industry is likely to evolve into a “two-hour economy” model, with the Pearl River Delta and the Yangtze River Delta serving as hubs for high-end PCB manufacturing, and equipment and materials research and development.
5. The Yangtze River region, encompassing Chongqing, Sichuan, Hubei, Anhui, and other top global electronics companies, is expected to lead as an industrial belt within this two-hour economy framework.
6. The Bohai Bay Economic Circle, centered around northern Dalian, and the industrial structure of the Northwest Guangdong Processing Zone, particularly after the opening of the Hong Kong-Zhuhai-Macao Bridge, will also play significant roles in this evolving landscape.
7. Market development trends
1. From the perspective of the number of layers and development direction of PCBs, the PCB industry is divided into six main product segments: single-panel, double-panel, conventional multilayer boards, flexible boards, HDI (High-Density Interconnect) boards, and package substrates.
2. Considering the four cyclical dimensions of the product life cycle—introduction period, growth period, maturity period, and decline period—single-panel and double-panel boards are in a decline period as they are less suited to the current trend towards short, light, and thin electronic products. Their proportion is gradually decreasing. Developed regions like Japan, South Korea, and Taiwan have largely ceased domestic production of these products, with many major manufacturers explicitly stating they will no longer accept single and double panels.
3. Conventional multilayer boards and HDI boards are in the mature stage. Their process capabilities are well-developed, and their product value is high. Most major PCB manufacturers are now fully committed to these primary supply directions. Only a few Chinese manufacturers, such as Ultrasonic Electronics, have the production technology. High-density flexible boards and rigid-flex boards are still not mature enough for mass production by many manufacturers. They are in the growth stage but are more suited for digital products than rigid boards. The growth of flexible boards is significant, marking a key future development direction for major manufacturers.
4. Packaging substrates used in ICs are relatively mature in developed electronics industries like Japan and South Korea, both in R&D and manufacturing. However, they are still in the technological exploration stage in China. Only a few manufacturers, such as Ibiden (Beijing) Co., Ltd., ASE Semiconductor (Shanghai) Co., Ltd., and Zhuhai Doumen Chaoyi Electronics Co., Ltd., produce them in small batches. This is due to the underdevelopment of China’s IC industry. However, as multinational electronics giants continue to relocate IC R&D institutions to China and domestic IC R&D and production levels improve, packaging substrates are poised for significant market growth, marking a visionary development direction for the industry.
5. China’s rigid boards (single-sided, double-sided, multilayer, and HDI boards) account for 70% of the total PCB market, with multilayer boards representing the largest proportion at 50%, followed by flexible boards at 15.6%. Due to oversupply pressure, most manufacturers have engaged in a price war, resulting in output value growth falling short of expectations.
6. Regarding the future development trend of domestic PCB products, the increase in output is slightly less than the increase in sales. This is mainly due to the gradual shift in product structure towards multilayer and high-precision boards. China’s multilayer and HDI boards are in the growth stage of the industry, with expanding scale and maturing technology. Multilayer boards remain the market’s mainstream, while HDI boards are experiencing rapid growth driven by demand for upgraded electronic information products.
