The upstream of the PCB manufacturing industry is mainly copper foil, copper foil substrate, glass fiber cloth, resin and other raw materials industries; the downstream is mainly electronic consumer products, automobiles, communications, aerospace and other industries. The PCB manufacturing industry has a long industrial chain. Special wood pulp paper, electronic grade glass fiber cloth, electrolytic copper foil, CCL and PCB are closely connected and interdependent upstream and downstream products in an industrial chain.
In the downstream, PCB is widely used in communications, optoelectronics, consumer electronics, automobiles, aerospace, military, industrial precision instruments and many other fields. It is an indispensable electronic component in modern electronic information products. The development level of the PCB industry can be To a certain extent, it reflects the development speed and technical level of a country or region’s electronics industry.
From the perspective of suppliers in the PCB industry chain, in each PCB industry chain: upstream raw material suppliers include Mitsui Metals, Honghe Technology, Hitachi Chemical, Mitsubishi Gas and other Chinese and foreign companies; midstream CCL representative companies include Nanya New Materials and Jinanguo Ji, Shengyi Technology, Huazheng New Materials, etc. PCB representative companies include Pengding Holdings, Dongshan Precision, Shennan Circuit, and Shanghai Electric Power Co., Ltd.
Analysis of the upstream and downstream of the printed circuit board industry chain
1. PCB cost structure
According to Prismark statistics, in the cost composition of PCB, copper clad laminate is the main cost composition of PCB, accounting for about 30% of the total cost of copper clad laminate; secondly, the cost of manufacturing costs and labor costs also accounted for about 20%; copper The cost of foil, copper balls, and photoresist accounted for 9%, 6%, and 3%, respectively.
2. Status of upstream raw material supply
From the perspective of the supply of raw material electrolytic copper foil, from 2015 to 2020, China’s electrolytic copper foil production has increased year by year, reaching 430,600 tons in 2019, an increase of 35,000 tons over 2018, with an annual growth rate of 9.0%. Among them, there are 13 domestic enterprises with an annual output of more than 10,000 tons. In 2020, according to the new production capacity of various enterprises and market demand, it is preliminary estimated that the output of my country’s electrolytic copper foil will reach 465,000 tons, an increase of 7.99% year-on-year.
In order to meet the needs of the development of copper clad laminates, my country’s fiberglass industry has made continuous efforts to innovate technology. From the perspective of the fiberglass industry, my country’s fiberglass yarn output has continued to grow in recent years. In 2020, the total output will be 5.41 million tons, a year-on-year increase of 2.66%. Although the new crown pneumonia epidemic has had a huge impact on the global economy, thanks to the continuous advancement of industry-wide capacity control since 2019, the timely recovery of the domestic demand market, and the gradual recovery of demand in infrastructure, home appliances, electronics and other fields, the glass fiber market has shown a steady growth trend .
Epoxy resin has excellent physical and mechanical properties, electrical insulation properties, chemical resistance and bonding properties. It can be used as coatings, casting materials, molding materials, adhesives, and laminates to penetrate into daily life in the form of direct or indirect use Supplies to all aspects of the national economy in the high-tech field.
From the perspective of my country’s epoxy resin production scale, from 2010 to 2020, my country’s epoxy resin production scale will fluctuate. In 2020, domestic epoxy resin production will be 1,285,900 tons, an increase of 6.29% year-on-year.
3. Supply status of midstream material copper clad laminates In terms of the supply of copper clad laminates, China’s copper clad laminate industry has developed rapidly in recent years, and China has become the world’s largest producer of copper clad laminates. According to data disclosed by the Copper Clad Laminate Materials Branch of the China Electronic Materials Industry Association, my country’s copper clad laminate production has shown an overall upward trend from 2013 to 2019. In 2019, my country’s PCB copper clad laminate production was 683 million square meters, an increase of 4.35% year-on-year. It is preliminarily estimated that the output of PCB copper clad laminates in my country in 2020 will be more than 756 million square meters.
4. The status quo of the downstream electronics manufacturing market
The downstream industries of the PCB industry cover a wide range, involving general consumer electronics, information, communications, and even aerospace technology products. With the development of science and technology, the demand for electronic information processing of various products is gradually increasing, and new electronic products continue to emerge, which makes the use and market of PCB products continue to expand. According to statistics, communication electronics accounted for the largest proportion of my country’s PCB downstream applications in 2019, reaching 30%.
From the perspective of the development of my country’s electronics manufacturing industry, my country’s electronics manufacturing market is relatively large, with a market capacity of more than 10 trillion yuan. According to the National Bureau of Statistics, the size of my country’s electronics manufacturing market will be approximately 12.10 trillion yuan in 2020, a year-on-year increase of 6.40%.
The development status of the printed circuit board industry
1. The status quo of the Chinese market
The manufacturing quality of PCB not only directly affects the reliability of electronic products, but also affects the overall competitiveness of downstream products. At present, in the field of downstream applications, communication electronics and consumer electronics have become the main areas of PCB applications. According to Prismark statistics, my country’s PCB output value has risen year after year from 2014 to 2020. In 2020, my country’s PCB output value reached approximately 35.1 billion U.S. dollars, an increase of 6.69% year-on-year.
Since the 21st century, a large number of electronic industries in Europe and the United States have begun to migrate to Asia, and the Asian region has become the world’s most important manufacturing base for electronic products, and a new pattern dominated by mainland China has been formed. From 2014 to 2020, my country’s PCB output value has gradually increased in the global proportion, and it has reached 53.83% in 2020.
2. China PCB market structure
Among the PCB subdivision products in my country, the largest proportion is the multilayer board. The market share in 2020 is about 44.86%. The multilayer PCB refers to the PCB with more than two layers. The bonding pads used for assembling and welding electronic components have the function of conducting various layers of circuits and insulating each other.
Followed by flexible boards and HDI boards, which account for approximately 17.37% and 17.34% of the market. Flexible circuit boards have the characteristics of being light, thin, flexible, and capable of three-dimensional assembly. HDI boards have the characteristics of conductive layer thickness and low insulation layer thickness. Used in mobile phones, digital cameras and other products.
The competitive landscape of the printed circuit board industry
Regional pattern: Pearl River Delta, Yangtze River Delta, etc. are the main distribution China’s PCB manufacturing industry is a highly competitive industry. After the rapid development stage and fierce market competition tempered, the basic pattern of the PCB industry has gradually formed. As of 2020, there will be more than 2,000 PCB companies in mainland China.
From the perspective of regional distribution, China’s PCB industry has basically formed a stable industrial cluster. Domestic PCB companies are mainly distributed in the Pearl River Delta, Yangtze River Delta, and Bohai Rim. The electronics industry has high concentration, large demand for basic components, and good facilities. Areas with transportation conditions, and water and electricity conditions.
Corporate competition: Pengding Holdings is firmly in the leading position
In terms of corporate competition in my country’s PCB industry, according to the 20th (2020) China Electronic Circuit Industry Ranking List jointly released by China Electronic Circuit Industry Association and China Electronic Information Industry Association in May 2021, my country’s PCB business revenue will be the highest in 2020 The company is Pengding Holdings, whose PCB business revenue in 2020 is 29.851 billion yuan; followed by Suzhou Dongshan Precision and Tripod Technology, whose PCB business revenue in 2020 is 18.771 billion yuan and 12.528 billion yuan, respectively.
The development prospect and trend forecast of the printed circuit board industry
Policies and new industries drive market development
PCB is an indispensable base material for the electronic information industry, and its technical level determines the level of a country’s electronic information industry. In recent years, the Chinese government has issued a series of policies to encourage the development of the electronic information industry. The electronic information industry, one of the development priorities of the country’s strategic emerging industries, is ushering in major development opportunities.
In addition, my country has begun to explore the market in depth in emerging fields such as 5G communications, cloud computing, big data, artificial intelligence, industry 4.0, and the Internet of Things. The PCB industry, as the basic force connecting the ups and downs in the entire electronic information manufacturing industry chain, will enter the technology , New product cycle.
Technology and product upgrades have become an inevitable trend
In terms of PCB technology development, with the advancement of science and technology in my country, the current new generation of PCB products led by miniaturization of vias, finer wires, multilayer multilayer boards and integrated component boards has gradually developed and matured.
At the same time, a new generation of PCB materials and products represented by laser technology, plasma technology and nanotechnology have also appeared. Therefore, these new technologies and new processes will promote the overall development of PCB products in the direction of high-density and integrated components.
In terms of PCB product development, although my country has become the world’s largest production base, there are still some gaps in high-end PCB production technology with Europe, America and Japan. Currently, Japan focuses on high-end products such as high-end HDI boards, packaging substrates, and high-level flexible boards; the United States focuses on high-end multi-layer boards used in high-tech fields such as military, aviation, and communications; South Korea and Taiwan use additional High-value package substrates and HDI boards are the main ones. At present, most PCB manufacturers in mainland China still mainly produce ordinary PCB products, with low added value of products and low level of product manufacturing technology and craftsmanship. Therefore, at present, a number of leading companies in mainland China have begun high-end product R&D and production line construction. In the future, high-end products will also become the main direction of product development in my country’s PCB industry.