With major PCB manufacturers establishing factories in China, the resulting industrial clustering effect has presented growth opportunities for the country’s PCB upstream and downstream manufacturers. The circuit carrying basis of printed circuit boards, copper clad laminate (CCL) is an essential component of most electronic products. The industry trend indicates a centralized production of CCL, led by major players like Evergrande. Despite rapid production capacity expansion, the industry faces meager profits. The global capacity growth rate is estimated to reach 23.67% in 2007, with China’s expected capacity growth rate nearly reaching 30%. This expansion may result in an industry recession due to overcapacity.

While CCL concentration is relatively low compared to foreign countries, it still remains high compared to PCB. Notably, over 50% of the main sales volume of major CCL manufacturers are concentrated in 8 of the top 10 companies based in foreign countries. In contrast, China has nearly 113 CCL producing companies, with each company holding less than 0.3% of the global share on average. China’s CCL industry is characterized by its large volume, yet low value, and presents opportunities for development and integration for CCL enterprises.