The upstream segment of the PCB industry chain consists of raw materials essential for producing various PCBs, including copper clad laminates, copper foils, copper balls, prepregs, gold salts, inks, dry films, and other chemical materials. For flexible circuit boards, key raw materials also include cover films and electromagnetic films. The midstream segment comprises PCB manufacturers. Downstream, PCB applications span a wide range, with computer, communication electronics, and consumer electronics representing over 68% of the market, significantly influencing the development of the upstream PCB industry.
The supply and price levels of upstream raw materials determine the production costs for PCB companies. Fluctuations in downstream industries directly impact the demand and pricing of printed circuit boards.
Diverse downstream applications are driving the PCB market’s recovery.
01
The demand for lightweight and thin mobile phones and tablets is propelling the expansion of the FPC market.
01
In the trend of intelligent, lightweight, and slim mobile electronic products, FPC offers advantages such as high density, light weight, thinness, bending resistance, flexible structure, and high temperature resistance. New mobile phones from Apple and other manufacturers have significantly increased FPC usage. Currently, the degree of localization of FPC is low, with major production being dominated by manufacturers from the United States, Japan, and Taiwan.
02
With the advent of 5G, high-density small base stations are driving increased demand for high-value-added PCBs. According to the Ministry of Industry and Information Technology, large-scale 5G network testing began in 2018, with construction launching in 2019 and commercial services potentially starting as early as 2020. The 5G high-frequency band requires smaller coverage areas. The China Industry Information Network forecasts that the number of 5G base stations will reach 14 million by 2024, spurring increased PCB demand. 5G also necessitates higher PCB capacity and speed. Prismark estimates that China will invest $180 billion in 5G infrastructure.
03
The high-end server market is expanding rapidly, and the added value of PCBs is rising daily. The new IT era, characterized by cloud computing and big data, is transforming server technology and the market, with China’s server market experiencing double-digit growth. As high-speed, large-capacity, cloud computing, and high-performance servers continue to evolve, PCB design requirements are becoming more demanding, including factors like high-rise count, large size, high aspect ratio, high density, advanced material applications, and lead-free soldering.
04
The automotive electronics trend is unmistakable, with the automotive PCB market projected to exceed 100 billion yuan. The rise of new energy vehicles is expected to drive significant PCB market growth. As automotive electronics become increasingly sophisticated, covering driving control, vehicle condition displays, and entertainment systems, their cost proportion in vehicles is rising. In 2017, China’s automotive electronics market was valued at $82.6 billion, representing 36% of the global market. This is expected to grow to $110.2 billion by 2019. The global push to ban fuel vehicles accelerates the shift towards new energy vehicles, benefiting PCB boards used in Battery Management Systems (BMS). According to the Ministry of Industry and Information Technology, the new energy vehicle-related PCB market is projected to reach 2.85 billion yuan in 2018, 3.96 billion yuan in 2019, and 5.43 billion yuan in 2020.
05
Environmental protection oversight and automation are driving increased concentration in the PCB industry. Enhanced environmental supervision and the rise of new automated production capacities are accelerating the withdrawal of outdated domestic PCB production capabilities, benefiting leading manufacturers through accelerated industry consolidation. Since 2017, stricter environmental regulations have led to production restrictions and rectifications for many PCB manufacturers. Leading companies, equipped with environmental protection credentials, are expanding capacity, and the trend towards larger, centralized operations continues. Smaller factories struggle to upgrade due to limited funds, while large PCB manufacturers are expanding production. Automation trends enhance operating efficiency, improve yield, gross profit margins, and supply chain cost control, further squeezing the space for smaller factories.
The supply and price levels of upstream raw materials determine the production costs for PCB companies. Fluctuations in downstream industries directly impact the demand and pricing of printed circuit boards.
Diverse downstream applications are driving the PCB market’s recovery.
01
The demand for lightweight and thin mobile phones and tablets is propelling the expansion of the FPC market.
01
In the trend of intelligent, lightweight, and slim mobile electronic products, FPC offers advantages such as high density, light weight, thinness, bending resistance, flexible structure, and high temperature resistance. New mobile phones from Apple and other manufacturers have significantly increased FPC usage. Currently, the degree of localization of FPC is low, with major production being dominated by manufacturers from the United States, Japan, and Taiwan.
02
With the advent of 5G, high-density small base stations are driving increased demand for high-value-added PCBs. According to the Ministry of Industry and Information Technology, large-scale 5G network testing began in 2018, with construction launching in 2019 and commercial services potentially starting as early as 2020. The 5G high-frequency band requires smaller coverage areas. The China Industry Information Network forecasts that the number of 5G base stations will reach 14 million by 2024, spurring increased PCB demand. 5G also necessitates higher PCB capacity and speed. Prismark estimates that China will invest $180 billion in 5G infrastructure.
03
The high-end server market is expanding rapidly, and the added value of PCBs is rising daily. The new IT era, characterized by cloud computing and big data, is transforming server technology and the market, with China’s server market experiencing double-digit growth. As high-speed, large-capacity, cloud computing, and high-performance servers continue to evolve, PCB design requirements are becoming more demanding, including factors like high-rise count, large size, high aspect ratio, high density, advanced material applications, and lead-free soldering.
04
The automotive electronics trend is unmistakable, with the automotive PCB market projected to exceed 100 billion yuan. The rise of new energy vehicles is expected to drive significant PCB market growth. As automotive electronics become increasingly sophisticated, covering driving control, vehicle condition displays, and entertainment systems, their cost proportion in vehicles is rising. In 2017, China’s automotive electronics market was valued at $82.6 billion, representing 36% of the global market. This is expected to grow to $110.2 billion by 2019. The global push to ban fuel vehicles accelerates the shift towards new energy vehicles, benefiting PCB boards used in Battery Management Systems (BMS). According to the Ministry of Industry and Information Technology, the new energy vehicle-related PCB market is projected to reach 2.85 billion yuan in 2018, 3.96 billion yuan in 2019, and 5.43 billion yuan in 2020.
05
Environmental protection oversight and automation are driving increased concentration in the PCB industry. Enhanced environmental supervision and the rise of new automated production capacities are accelerating the withdrawal of outdated domestic PCB production capabilities, benefiting leading manufacturers through accelerated industry consolidation. Since 2017, stricter environmental regulations have led to production restrictions and rectifications for many PCB manufacturers. Leading companies, equipped with environmental protection credentials, are expanding capacity, and the trend towards larger, centralized operations continues. Smaller factories struggle to upgrade due to limited funds, while large PCB manufacturers are expanding production. Automation trends enhance operating efficiency, improve yield, gross profit margins, and supply chain cost control, further squeezing the space for smaller factories.
