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China is about to become the home of the world's printed circuit boards

Shenzhen Inno Circuit Co.,Ltd | Updated: May 29, 2018

China is about to become the home of the world's printed circuit boards

PCB (printed circuit board) is the support body and electrical connection carrier of electronic components. The output value of the global PCB industry accounts for more than 1/4 of the total output value of the electronic components industry, and the industrial scale reaches 60 billion US dollars. Due to China's huge domestic demand market, lower labor costs, and improved industrial support, global PCB production capacity has continued to shift from China since 2000. Since 2006, China has surpassed Japan as the world’s largest PCB producer. .

The Chinese PCB industry has gone through an unusual path from chasing to surpassing. At present, China's PCB industry has accounted for nearly 50% of the world's total, and it has become the largest PCB supply base in the world. This is best demonstrated by the Shenzhen CS Show 2017. On August 29-31 this year, the CS Show 2017 exhibition will be held for the fourth time. This industry exhibition with PCB/FPC procurement as its theme, exhibition area and number of visitors has reached new heights, fully demonstrating that the focus of global PCB development is on the way. China transfers. However, there is still a long way to go for China to become a true PCB powerhouse. Previously, industry experts had warned that PCB companies should pay attention to the operation, China's PCB industry will not continue to grow rapidly in the future, while the PCB's product structure will have greater changes, increase the density, the difficulty will increase. Therefore, PCB companies must optimize their processes and continuously improve their automation and intelligence capabilities.

Looking at China's PCB Industry Development Status from the Top 100 List

Judging from the list of printed circuit boards in China, the PCB industry in mainland China has experienced rapid growth in production capacity for more than ten years. From the sales point of view, in the first ranking released in 2002, only 28 companies had sales revenues of over 100 million yuan in 2001, and the first place, Tianli, had sales of 1.3 billion yuan. Since 2005, 100 companies have been able to enter the rankings. By the 15th year of 2016, the number of companies with a total PCB business income of 100 million yuan has reached 131, which is 4.7 times that of the first session. In terms of revenue, Ding Ding Technology, which ranks No. 1 in the comprehensive enterprise, has reached 16.819 billion yuan, which is 13 times that of Tianli, the first place in the first session 15 years ago. In terms of regional development, the top 100 PCB companies are mainly located in Shenzhen, Huizhou, Suzhou, Shanghai, Kunshan, Taiwan and Hong Kong.

Domestic PCB products are moving from low-end to high-end

At present, China's PCB industry has entered a period of steady development, and the products are mainly concentrated on low-end and middle-end PCBs with cost advantages. According to market data compiled by the China Chamber of Commerce for Industry and Commerce, in 2016, the domestic market share of hard board and composite board was 13.0% and 3.7%, respectively, while the market share of four-storey, six-storey and eight- to 16-storey boards accounted for Respectively, 19.1%, 13.5%, and 10.4%, IC carrier boards, 18-storey and higher board sales accounted for relatively small, respectively, only 2.7% and 1.2%. The market share of HDI boards and flexible boards is 16.5% and 17.1% respectively. With the continuous improvement of technology in China's PCB industry, the product structure is gradually being optimized, and the sales ratio of traditional product single/dual-plane and multi-layer boards is gradually decreasing. High-tech, high-value-added HDI boards, packaging substrates, flexibility The sales of boards and other products continue to increase.

Emerging Applications Bring Unlimited Business Opportunities to PCBs

On February 4, 2017, the National Development and Reform Commission announced the "Guiding Catalogue of Key Emerging Industries Key Products and Services" (2016 version), including a new generation of information infrastructure, high-end equipment manufacturing, new materials industry, bio-industry, and new energy The industry, energy conservation and environmental protection industries, digital creative industries, and new energy automotive industries, including five sectors and eight industries, involve nearly 4,000 subdivided products and services. Compared with the version of three years ago, the number of subdivided products and services has increased by nearly 900 items, of which the artificial intelligence and digital creative industries have entered the list of guidance catalogues for the first time. The sub-category of new energy vehicles has also been expanded from the original “pure-electric vehicles and plug-in hybrid vehicles” to “new energy automotive products”, “rechargeable, exchangeable and hydrogenated facilities” and “production test equipment”. Three items.

Nowadays, cars are moving towards intelligent development, and the automotive industry is expected to relay smart phones as new smart terminals. With the continuous expansion of the market share of electric vehicles, intelligent + new energy, making the use of electronic components in the car increased significantly, automotive electronics will be an important market for PCB. However, the automotive industry has high requirements on the safety and reliability of products. Therefore, the PCB industry should make a good reserve of technology and production before comprehensive blowout of smart cars and new energy vehicles.

The statistics report released by the Ministry of Industry, Information, and Technology Supervision and Coordination in May stated that in the first quarter of this year, the overall operation of China's electronic information manufacturing industry continued its steady development from the second half of last year. Among them, the communications equipment industry maintained double-digit growth. In the first quarter, the output of smart phones alone reached 358.66 million units, an increase of 11.4%; the growth rate of computer industry production continued to rise, with 39.93 million notebook computers, an increase of 10%. These areas are usually large demand for PCBs. According to the current performance of the consumer electronics market, smartphones, wearables, portable medical equipment, and health equipment, etc., have large market capacity, fast product replacement, and increasingly lighter, thinner, and smaller products. The PCB industry has already prepared the technology and resources to meet these demands.

Artificial intelligence, big data, and cloud computing are strategic emerging industries supported by the country. From the perspective of product technology and process requirements, they belong to the category of high-end manufacturing and have extremely high requirements for PCB manufacturing equipment and personnel. This is also The transformation and upgrading of the PCB industry provided a good opportunity.

Nowadays, in many areas such as cloud computing, big data, artificial intelligence, new energy vehicles, smart cars, communications, consumer electronics, health care, and wearable devices, China has a huge market and has created a large number of new consumer demands. Specific to the PCB industry, as an indispensable part of the electronic system, the rapid development of these industries also brings boundless opportunities for the PCB industry, which also proves from another side, why China's PCB production can occupy half of the world and become the largest PCB supply base.

China is expected to become the home of the global PCB industry

According to the China Manufacturing Purchasing Managers Index (PMI) released by the National Bureau of Statistics, the PMI for June 2017 was 51.7%, up 0.5% from the previous month, and the pace of manufacturing expansion accelerated. From the perspective of the sub-index, among the five sub-indices that constitute the manufacturing PMI, the production index and new order index are above the critical point, indicating that China's manufacturing production continues to grow, and the demand for the manufacturing market has steadily increased.

According to data from the National Bureau of Statistics, China's manufacturing purchasing managers index rose by 0.5% in June 2017 from the previous month, and the pace of manufacturing expansion accelerated.

Specifically, the shift of the global electronics manufacturing industry chain to the Asia-Pacific region has led to the eastward migration of the PCB industry. Nowadays, the vast majority of PCBs in the world are produced in Asia. The specific market distribution is that China accounted for 50% in 2016, 12.8% in Taiwan, 11.5% in Korea, and 9.7% in Japan. PCBs in these four countries in Asia accounted for 84% of the world's total. According to Prismark's statistics, from 2010 to 2015, China's PCB output value surged from US$ 19.971 billion to US$ 26.70 billion. In 2016, the global PCB market output value reached US$ 54.2 billion, which is a decrease from 2015 production, and will continue to be in the global electronic information industry in the future. Driven by development, it is expected that the global PCB market will reach a value of $55.3 billion in 2017. And a considerable part of this output value will fall into the hands of Chinese PCB companies.

The Ministry of Industry and Information Technology of the Ministry of Information Industry, while interpreting the "Guidelines for the Development of the Information Industry," pointed out that the demand for key application software and integrated integrated solutions has been continuously improved. During the “Thirteenth Five-Year Plan” period, China will focus on developing software platforms and application systems based on new computing frameworks and application scenarios such as cloud computing, big data, mobile Internet, and the Internet of Things. Telecommunications, transportation, education, health care, geographical information, etc. will be key areas of development.

In terms of personnel reserves, at present China's manufacturing enterprises above designated size have a total of 85.89 million human resources and 8.09 million professional and technical personnel. The Ministry of Education, the Ministry of Human Resources and Social Security, and the Ministry of Industry and Information Technology jointly issued the "Guidelines for Manufacturing Talent Development Planning." It is mentioned that by 2020, human resources development patterns that are compatible with the needs of the development of manufacturing industries will be formed and cultivated. To create a team of manufacturing talents with sufficient numbers, reasonable structure, high quality and full of vigor. Currently, the total manpower resources of enterprises above designated size in China's equipment manufacturing industry totals nearly 17.94 million people. According to incomplete statistics, the total number of talented people is nearly 7.36 million. 29% of the total talents have a bachelor's degree and postgraduate education respectively. %. With the increasing investment in traditional manufacturing specialty construction, a large number of advanced design, key manufacturing processes, materials, digital modeling and simulation, industrial control and automation, industrial cloud services, and big data applications will be born. Technical talents.

On the whole, no matter whether it is national policy support, market potential, industry accumulation, or talent reserve, China already has all the conditions for the rapid development of the PCB industry, and becoming the home of the global PCB industry is a matter of course.

China's PCB Industry Opportunities and Challenges

Although new applications place high demands on raw materials and manufacturing processes, in the market, PCB products with low technical difficulty still account for a high proportion. Therefore, improving the manufacturing yield is a direct reflection of the competitiveness of the company. Such as BGA welding reliability problems, small-scale PCB processing technology problems, thick copper plate processing process control, etc., are PCB companies in the process of development and growth need to focus on and solve the problem.

The specific market challenges are: First, the challenges brought about by the emerging technologies and applications to the manufacturing process. Especially consumer electronics, smaller and smaller dimensions, high density, and continuously narrowing the pitch of component leads to high requirements for PCB manufacturing and welding processes. Second, the IC industry is pushing down the high-end market of PCBs. The new MIS packaging technology and high-end PCB market competition has emerged; Third, the market competition is intensified, it is more difficult for enterprises to become bigger and stronger; Fourth, lack of professional talents, manufacturing personnel training will also "grab from the doll."

With the transition of the PCB industry from high-speed growth to industrial upgrading, competition in the industry has intensified, and many PCB manufacturers have begun to engage in the production of downstream electronic patches and plug-ins. According to statistics, there are more than 5,000 professional patch factories and plug-in factories in China. Foreign buyers purchased more than half of their total purchases of circuit boards, patch/plug-in products and final electronic finished products in the Chinese market. From the top 100 list, we can see that, as far as the overall industry is concerned, there is not much difference between companies. There are 15 companies with sales revenue of 2 billion to 4 billion yuan, and PCB is still a highly dispersed industry. It is difficult to form one or more dominance situations. This is very different from the development of IC manufacturing.

As the development of China's PCB industry matures, the growth rate of the industry tends to stabilize, and development will gradually slow down. Searching for new market growth points will become the most pressing issue for PCBs. At the same time, environmental protection agencies will continue to increase the supervision of the industry's environmental protection governance and have higher requirements for the company's environmental impact assessment. A deep understanding of the hot spots and requirements of environmental protection policies and adherence to green smart manufacturing are issues that must be paid attention to in the healthy and rapid development of the PCB industry. In addition, the price increase of raw materials that has lasted for two years is also a problem that the PCB industry urgently needs to solve. Faced with a series of thorny issues, companies are striving for innovation and development.