1. It is believed that the previous price reduction of raw materials has led to an oversupply of components, as the industry’s off-season is expected to end. Copper foil manufacturers will inevitably adjust their production capacity, and an effective price transmission mechanism will allow leading copper-clad laminate and PCB manufacturers with bargaining power to pass on raw material costs. This will relieve pressure from rising costs and provide more room for performance elasticity improvement.

2. Downstream applications:

The annual growth rate of PCB market demand in various sub-sectors has reached over double digits, becoming a new driving force for the industry’s upward trend:

3. The acceleration of new energy and electrification in automobiles is propelling the automotive PCB market to exceed 100 billion yuan. Given the long certification cycle and high entry barriers for automotive electronics, new energy vehicles are expected to drive the PCB market up by tens of billions.

4. The prosperity of the small-pitch LED market continues to rise, resulting in strong demand for multi-layer PCBs.

5. Rapid advancements in mobile communication technology and the construction of high-density small base stations are boosting the demand for high value-added PCBs.

6. China’s high-end server market is expanding quickly, increasing the demand for high-standard PCB products. Additionally, the need for thinner and lighter consumer and automotive electronics is driving up the volume and price of FPCs. Outstanding domestic manufacturers are poised to capitalize on this trend.

7. Looking ahead, PCB listed companies will persist in their strategy of continuously adjusting product structures to meet downstream market demand, thereby enhancing overall profitability. However, compared to upstream copper foil and copper-clad laminate industries, many domestic PCB companies exhibit uneven product quality and production capacity. With resource acquisition and environmental protection considerations, outdated production capacity will be phased out in the future, leading to increased industry concentration. High-quality PCB manufacturers in China are expected to leverage advantages like resource allocation and lower costs to stand out, accelerate the global shift in the PCB industry, and potentially replace major overseas factories to become global leaders.