As a fundamental component in the electronic information industry chain, PCB is often referred to as the “mother of electronic products.” When examining the geographical distribution of the electronics industry in our country, it becomes evident that as mainland China’s development continues to deepen, the PCB industry is also expanding accordingly. This expansion includes the establishment of development zones such as the Pearl River Delta in 1994, the Yangtze River Delta in 2000, the Bohai Rim in 2005, and the Western Triangle since 2010, when the central government began to promote the development of the Greater Western Region. These zones represent significant progress for the PCB industry, including chip decryption.
Chip decryption-related data shows that despite the mainland circuit board industry flourishing in various regions, it remains the world’s largest PCB manufacturing hub. In 2014, the global PCB output value totaled $57.437 billion, marking a 2.3% year-on-year increase. China’s PCB output contributed $26.1 billion, up by 6.0% annually, the highest growth rate globally. Chinese domestic and foreign-funded PCBs collectively accounted for 45.5% of global production, nearly half of the worldwide share, underscoring its significant advantage.
Yet, within the global PCB industry framework, China’s manufacturing, despite high expectations, has shown lackluster performance, entrenched in the mid-to-low-end sectors, unable to shed the label of being a mere “foundry power.” As the global economy slowly rebounds, emerging markets like India, the Philippines, Indonesia, and Thailand are on the rise. Coupled with escalating prices of PCB raw materials and strengthened domestic controls on environmental protection and energy conservation, the once-dominant “Made in China” advantage in low-cost manufacturing is gradually eroding. Development speed and quality are no longer the strengths they once were.
Another critical issue is China’s focus on middle and low-end segments of the circuit board industry, particularly double-sided and multi-layer boards. There’s a clear lack of innovation momentum in single product types, widening the gap with developed nations. In 2014, compared to 2013, domestic production of multilayer boards increased by 3.9%, and single/double panel production grew by 2.1%, primarily for PC, NB, communications, and consumer electronics. HDI board production rose by 2.1%, largely driven by mobile terminal products such as smartphones. However, growth in soft boards and IC substrates remains sluggish, trailing behind Japan, South Korea, and Taiwan.
With a multitude of mainland Chinese manufacturers aggressively entering the market, intense price competition has escalated, making it increasingly challenging for board manufacturers to secure orders. Adapting to the dynamic market environment has thus become a pressing issue for the industry to tackle urgently.
Chip decryption-related data shows that despite the mainland circuit board industry flourishing in various regions, it remains the world’s largest PCB manufacturing hub. In 2014, the global PCB output value totaled $57.437 billion, marking a 2.3% year-on-year increase. China’s PCB output contributed $26.1 billion, up by 6.0% annually, the highest growth rate globally. Chinese domestic and foreign-funded PCBs collectively accounted for 45.5% of global production, nearly half of the worldwide share, underscoring its significant advantage.
Yet, within the global PCB industry framework, China’s manufacturing, despite high expectations, has shown lackluster performance, entrenched in the mid-to-low-end sectors, unable to shed the label of being a mere “foundry power.” As the global economy slowly rebounds, emerging markets like India, the Philippines, Indonesia, and Thailand are on the rise. Coupled with escalating prices of PCB raw materials and strengthened domestic controls on environmental protection and energy conservation, the once-dominant “Made in China” advantage in low-cost manufacturing is gradually eroding. Development speed and quality are no longer the strengths they once were.
Another critical issue is China’s focus on middle and low-end segments of the circuit board industry, particularly double-sided and multi-layer boards. There’s a clear lack of innovation momentum in single product types, widening the gap with developed nations. In 2014, compared to 2013, domestic production of multilayer boards increased by 3.9%, and single/double panel production grew by 2.1%, primarily for PC, NB, communications, and consumer electronics. HDI board production rose by 2.1%, largely driven by mobile terminal products such as smartphones. However, growth in soft boards and IC substrates remains sluggish, trailing behind Japan, South Korea, and Taiwan.
With a multitude of mainland Chinese manufacturers aggressively entering the market, intense price competition has escalated, making it increasingly challenging for board manufacturers to secure orders. Adapting to the dynamic market environment has thus become a pressing issue for the industry to tackle urgently.
