The outbreak of the new crown pneumonia in 2020, superimposed on the Sino-US trade friction, China's PCB market has been greatly impacted. However, the explosion of online applications has helped to achieve growth against the trend, and its toughness also reflects the iterative upgrading of China's Printed Circuit Boards (PCB) industry, and products with high added value and wide application fields are gradually becoming mainstream. In the future, as companies strive to break the bottleneck of PCB raw material supply, focus on the needs of 5G and other sub-sectors, and avoid low-end competition, China's PCB market is expected to usher in a leapfrog development.
The resilience of China's PCB industry continues to increase
Since 2020, the COVID-19 epidemic has escalated the pressure of Sino-US trade friction, which has had a continuous impact on the world economy. The previous division of labor in the QQ manufacturing industry has undergone profound changes. Affected by this, the PCB market fluctuated significantly, mainly reflected in the increase in raw material prices, the sharp fluctuations in PCB terminal demand and the lag in closed production of factories. At the beginning of the outbreak, the Chinese PCB market was particularly affected.
However, due to the substantial growth of online applications driven by the epidemic, strong demand for consumer goods such as desktop computers, notebooks, and tablet computers, as well as infrastructure products such as Internet equipment, cloud equipment, and artificial intelligence equipment, has driven the growth of China's PCB market against the trend. According to data calculated by CCID Consulting, the market size in 2020 will reach 260.32 billion yuan, with a growth rate of 10.4%, an increase of 0.2 percentage points over the same period, reflecting strong resilience.
China's PCB is in a critical period of iterative upgrade
PCB belongs to the basic electronic information industry, which is greatly affected by the cyclical fluctuations of the macro economy. At present, QQPCB enterprises are mainly distributed in China, Japan, South Korea and other places. The downstream application fields of the PCB industry are very extensive, and are less affected by a single industry, so they are relatively scattered, with many manufacturers, low market concentration, and full market competition. In recent years, my country has become the PCB production area of QQZD, and the trend of iterative upgrading from low-end to high-end is remarkable.
5G commercial network construction continued to be stable. In the medium and long term, the general trend of 5G communication construction will not change. The Chinese government also proposed to "intensify the construction of 5G networks and gigabit optical networks to enrich application scenarios" when deploying key tasks in 2021. Taking routers and switches in the backbone network as an example, the current mainstream specification of a single port (Port) can support a speed of 100Gbps, and the data volume driven by 5G will grow exponentially, which will promote its popularization to 400Gbps. As a result, the industry growth in the field of communication market boards has led to a strong demand for high-frequency and high-speed PCB products.
Auto electronics bottomed out. Affected by the epidemic, OEMs shut down their factories due to unstable supply chains and sluggish market demand, and the market demand for automotive sheets fell sharply year-on-year. However, with the production recovery of car companies, car sales have also rebounded from the bottom, and the general trend of car electrification, intelligence and networking is remarkable, automotive electronics for GJ driver assistance systems (ADAS), new energy vehicles and other fields of high-end PCB demand for high-end PCBs Exuberant, the automotive sheet market showed a V-shaped reversal trend and recovered rapidly.
In order to actively respond to market demand, the performance, technical process and product structure of China's PCB products have been greatly optimized. From the perspective of product performance, China's PCBs are developing towards high precision, high density and high reliability, and their performance has been continuously improved. ZY, large-scale and green production methods have gradually become popular, and Chinese PCB giants such as Dongshan Precision and Shennan Circuit have continued to optimize. The product structure is adapted to the needs of application fields such as communications, servers, storage, automotive electronics, and consumer electronics. From the technical point of view, Chinese PCB companies have further increased their investment in technology research and development, focusing on technical research on high-density interconnect (HDI) and high-speed and high-frequency multilayer boards. From the perspective of product structure, 8-16-layer multi-layer boards and super-high-layer boards with more than 18 layers in China's PCB market gradually replace low-end products and become the mainstream of the market.
Focus on segment needs to avoid low-end competition
Since the second half of 2020, affected by commodities such as copper, gold, and petroleum in the international market, the prices of PCB raw materials such as gold, copper, tin, aluminum, glass fiber cloth, epoxy resin, and copper clad laminate have increased. Enterprises should optimize the order structure, improve process capabilities, speed up technological innovation, increase the depth of customer cooperation, strengthen supplier development, strengthen raw material inventory management and other means to ensure the safety and stability of the supply chain and reduce the impact of rising raw material prices.
5G commercialization has entered a stable stage of implementation, and the security requirements of various key links in PCB downstream applications have been improved. Chinese PCB companies should seize the opportunity for development in subdivided fields, quickly transform technology accumulation into relative competitive advantages in the market, consolidate and Strengthen its market image and product layout in 5G, automotive electronics, data centers and other fields. At the same time, in the research and development of trending products that will affect the future, we must also focus on superior resources and organize technical ZJ to tackle key problems, strengthen our own advantages, and seize the development opportunities.
The focus of the QQPCB industry has further shifted to China, and Chinese PCB companies have ushered in a new opportunity for development. However, with the gradual reduction of cost and market advantages, industry expansion continues to increase. In the context of the rapid development of the industry, with the gradual release of new production capacity, the market competition in the PCB industry will become more intense, and the realization of dislocation competition and complementary development has become an important direction. Chinese PCB companies should carefully study the development trend of the industry, formulate overall development strategies and business strategies in line with their own conditions, continue to strengthen the LX advantages of product technology, and strive to build unique technical thresholds. At the same time, focus on digital transformation, continue to improve quality and efficiency, and cultivate competitive products. , to tap new growth points in the industry.
