What is the development prospect of Chinas PCB industry?
What is the development prospect of China's PCB industry?
1, China's PCB factory accounts for more than half of the global PCB market
PCB products have been used in commerce since 1948 and have been in use since the 1950s. The traditional PCB industry is a labor-intensive industry with a lower technology density than the semiconductor industry. Since the beginning of the 21st century, it has moved from the US and Japan to Taiwan and China. Up to now, China has become an influential PCB producer in the world, with PCB production accounting for more than 50% of the world.
In 2018, the global PCB production value reached US$63.6 billion. According to the data of the Institute of Obstetrics and Gynecology of the Institute of Industrial Engineering, although Taiwan still wins 31.3% of the global market share in 2018, China’s share also reached 23%，and the ratio is still rising. China and Taiwan together accounted for 54.3% of the global PCB production value.
2. In 2018, China's PCB output value exceeded 34 billion, and multi-layer PCBs accounted for the majority
China's electronic circuit industry is on the path of “industrial transfer”, and China has a healthy and stable domestic demand market and significant manufacturing advantages, attracting a large number of foreign-funded enterprises to shift their production focus to China. After years of accumulation, the PCB industry has gradually matured. As a major production area for PCBs, China is further extending to the mid-end and high-end markets.
In recent years, the scale of China's PCB production has expanded year by year. According to the statistics of China's printed circuit board manufacturing industry market prospects and investment strategic planning analysis report released by Prospective Industry Research Institute, the scale of China's PCB production value has reached US$20.17 billion in 2010. As of 2017, China's PCB output value has increased to 29.73 billion US dollars, an increase of 9.7%, accounting for 50.53% of the global total. By the end of 2018, the scale and growth rate of China's PCB industry's output value reached a record high, with an output value of US$34.5 billion, a year-on-year increase of 16.0%.
3. The PCB industry is mainly concentrated in China's Jiangsu and Guangdong regions
PCB products are the basic electronic components, and their industries are mostly built around the downstream industries. At present, there are about 1,500 PCB companies in China, mainly distributed in the Pearl River Delta, the Yangtze River Delta and the Bohai Sea. Among them, Guangdong and Jiangsu provinces have the highest concentration. In 2017, Guangdong PCB industry sales revenue accounted for 46.26% of the industry, Jiangsu reached 34.77%, and their total proportion reached 81%.
4. Emerging industries promote the development of PCB industry, China's PCB output value will exceed 40 billion US dollars in the future
China is a globally influential electronic information product manufacturing base and consumer market. With the continuous advancement of "Made in China 2025", it has already been in the mobile Internet, Internet of Things, big data, cloud computing, artificial intelligence, driverless cars and other markets. A number of world-renowned local companies have emerged to provide more development opportunities for the supporting electronics manufacturing industry.
In addition, since 2019, Henan, Beijing, Chengdu, Shenzhen, Jiangxi, Chongqing and other places have launched action plans or planning programs to support the 5G industry. With the advent of the 5G commercial era, the construction of network infrastructure such as base stations is accelerating, and the requirements for communication materials are higher and the demand for 5G communication equipment will be larger. Major operators will invest more in 5G construction in the future. Therefore, there will be a huge market for communication PCBs in the future. It is estimated that by 2022, China's PCB output value will exceed 40 billion US dollars, and by 2024, the output value will reach 43.8 billion US dollars, and the market scale is very large.