Over the past few months, the PCB (Printed Circuit Board) industry has shifted from an optimistic outlook to a more cautious and conservative perspective. The primary factor influencing this change is the current state of uncertainty in the global environment. While tariffs themselves are not seen as a major concern for the PCB industry, the real issue lies in the broader economic impact—specifically, how the ongoing trade wars could weaken the global economy. This shift in economic conditions is a critical factor that will affect the PCB sector’s performance moving forward.
In addition to these global uncertainties, the mobile phone market, a key driver for PCB demand, is facing its own challenges. Notably, the sales of Apple’s new phones in 2018 were underwhelming, resulting in a noticeable decline in revenue. This slowdown in the mobile market has directly impacted demand for PCB products, particularly those used in consumer electronics. Historically, the peak season for flexible PCB boards extended until November, but in 2018, the market saw an early stagnation, with some segments even experiencing a decline.
The combination of unclear demand growth and a lack of sufficient investment in capacity expansion over recent years has led the PCB industry to adopt a more conservative approach towards future growth. Several large PCB manufacturers have already announced that they will not be undertaking significant capacity expansions in the coming year. Instead, they plan to focus on increasing the number of layers in production, without a significant increase in overall output.
In summary, while the PCB industry once had high hopes for growth, the current combination of global uncertainty, weak mobile phone sales, and limited investment in new capacity has tempered these expectations. Looking ahead, the industry is likely to focus on optimizing existing production rather than expanding aggressively.
The rapid efforts to catch up with domestic investments in the PCB industry are worth closer examination. Over the past two years, the leading players, fueled by ample capital, have made significant advancements in 5G-related technologies. Notably, companies like Shennan Circuits and Hushi Electronics are now fully prepared to supply 5G infrastructure boards, with shipments ready for deployment at any time.
In addition to technological progress, effective corporate management is a key factor for the long-term sustainability of PCB factories. Regardless of how market conditions fluctuate, technological innovations evolve, or production capacities shift, optimizing production efficiency and improving yield rates remain the core challenges for any PCB manufacturer.
After all, PCBs are the backbone of all electronic products. As long as the electronics industry continues to grow, opportunities will always be present. Following periods of industry downturns, the market will eventually rebound. Thus, the continual application of sound management principles is essential for the ongoing development of the PCB sector, regardless of industry shifts, as seen in 2019.
As the global PCB manufacturing landscape increasingly consolidates in China, the country’s share of global PCB production value will continue to expand. It is projected that within five years, China’s share could rise to over 60%, reflecting its growing dominance in the industry.
PCBs are indispensable components in electronic products, and with the ongoing advancements in technology, their demand remains steady and continues to increase. As terminal applications continue to integrate and evolve, customers are placing higher expectations on the research, development, and production capabilities of PCB manufacturers. This trend will intensify the market competitiveness of larger companies, while putting smaller and medium-sized enterprises under pressure. Currently, with around 1,500 PCB companies in operation, further consolidation is expected. Over the next five years, it is anticipated that 50-100 companies will either merge or exit the market annually.
China’s PCB industry is entering a phase of sustained, stable growth, with its export value continuing to rise. In the first quarter of 2019 alone, China’s PCB exports totaled an impressive $5.95 billion, with an average monthly export volume nearing $2 billion. This upward trajectory underscores the global competitiveness and expansion of China’s PCB sector.
In addition to these global uncertainties, the mobile phone market, a key driver for PCB demand, is facing its own challenges. Notably, the sales of Apple’s new phones in 2018 were underwhelming, resulting in a noticeable decline in revenue. This slowdown in the mobile market has directly impacted demand for PCB products, particularly those used in consumer electronics. Historically, the peak season for flexible PCB boards extended until November, but in 2018, the market saw an early stagnation, with some segments even experiencing a decline.
The combination of unclear demand growth and a lack of sufficient investment in capacity expansion over recent years has led the PCB industry to adopt a more conservative approach towards future growth. Several large PCB manufacturers have already announced that they will not be undertaking significant capacity expansions in the coming year. Instead, they plan to focus on increasing the number of layers in production, without a significant increase in overall output.
In summary, while the PCB industry once had high hopes for growth, the current combination of global uncertainty, weak mobile phone sales, and limited investment in new capacity has tempered these expectations. Looking ahead, the industry is likely to focus on optimizing existing production rather than expanding aggressively.
The rapid efforts to catch up with domestic investments in the PCB industry are worth closer examination. Over the past two years, the leading players, fueled by ample capital, have made significant advancements in 5G-related technologies. Notably, companies like Shennan Circuits and Hushi Electronics are now fully prepared to supply 5G infrastructure boards, with shipments ready for deployment at any time.
In addition to technological progress, effective corporate management is a key factor for the long-term sustainability of PCB factories. Regardless of how market conditions fluctuate, technological innovations evolve, or production capacities shift, optimizing production efficiency and improving yield rates remain the core challenges for any PCB manufacturer.
After all, PCBs are the backbone of all electronic products. As long as the electronics industry continues to grow, opportunities will always be present. Following periods of industry downturns, the market will eventually rebound. Thus, the continual application of sound management principles is essential for the ongoing development of the PCB sector, regardless of industry shifts, as seen in 2019.
As the global PCB manufacturing landscape increasingly consolidates in China, the country’s share of global PCB production value will continue to expand. It is projected that within five years, China’s share could rise to over 60%, reflecting its growing dominance in the industry.
PCBs are indispensable components in electronic products, and with the ongoing advancements in technology, their demand remains steady and continues to increase. As terminal applications continue to integrate and evolve, customers are placing higher expectations on the research, development, and production capabilities of PCB manufacturers. This trend will intensify the market competitiveness of larger companies, while putting smaller and medium-sized enterprises under pressure. Currently, with around 1,500 PCB companies in operation, further consolidation is expected. Over the next five years, it is anticipated that 50-100 companies will either merge or exit the market annually.
China’s PCB industry is entering a phase of sustained, stable growth, with its export value continuing to rise. In the first quarter of 2019 alone, China’s PCB exports totaled an impressive $5.95 billion, with an average monthly export volume nearing $2 billion. This upward trajectory underscores the global competitiveness and expansion of China’s PCB sector.
