Analysis of China’s PCB industry in 2022
Definition and classification of products in the PCB industry
PCB, the abbreviation of Printed Circuit Board, that is, printed circuit board, also known as printed circuit board, printed circuit board, printed circuit board, refers to the use of electronic printing technology to form point-to-point connections on a common substrate according to a predetermined design and printed boards for printed components.
The main function of the PCB is to make various electronic components form the connection of the predetermined circuit, which plays the role of relay transmission. It is the key electronic interconnection of electronic products and is known as the “mother of electronic products”.
There are many types of PCB products, which can be classified according to the substrate material, the number of conductive pattern layers, downstream application industries or products, etc. According to the substrate material, PCB can be divided into rigid board, flexible board, rigid-flex board, HDI board and package substrate.
China’s local PCB is boomingAccording to the data of relevant institutions, in 2021, there will be 10 participants in the top 40 in the world in terms of output value of China’s printed circuit board industry, namely .DSBJ , SCC, Kinwong, Victory Giant Technology, Suntak , Kingboard Holdings Limited , AKM Meadville, Fastprint Aoshikang and Olympic. Many mainland Chinese PCB manufacturers have entered the rankings, marking the rapid development of mainland Chinese PCBs.
Rigid board is the main product type at present
According to the data of relevant institutions, the main product types of China’s printed circuit boards are multi-layer boards, HDI boards, flexible boards, single-sided and double-sided boards.
On the whole, rigid boards are the main product types, single-sided, double-sided and multi-layer boards are rigid boards, of which multi-layer boards account for more than 45%, and single/double-sided boards account for about 15%; and HDI boards account for The ratio is close to 20%, the proportion of flexible boards is about 15%, and the proportion of packaging substrates is close to 5%.
Therefore, the current main supply product type in China’s PCB industry is rigid boards, and the supply of HDI boards, flexible boards and packaging substrate products is relatively small.
The main application markets
According to the data of WEEC (World Electronic Circuit Council), in 2021, the downstream application fields of PCB in mainland China are mainly advanced communication, computer, consumer electronics and automotive electronics.
Among them, the advanced communication field accounted for the largest market size, accounting for more than 33%; followed by the application field of the computer field, accounting for more than 20%; the application field of consumer electronics and automotive electronics accounted for about 15%.
On the whole, in 2021, the main downstream markets of printed circuit boards in mainland China are advanced communications and computer fields, and the fields of consumer electronics and automotive electronics have great potential for development.
Note: Advanced communications include: mobile phones, wired infrastructure, wireless infrastructure; computers include: PC, server/storage, other computers.
PCB industry development policy environment
The electronic information industry is a strategic, basic and leading pillar industry for the key development of our country, and the PCB industry, as the cornerstone of the development of the electronic information industry, has become one of the projects encouraged by the state.
In recent years, China has promulgated policies such as “Encouraging Imported Technologies and Products (2016 Edition)), “Industrial Structure Adjustment Guidance Catalog (2019 Edition)” and other policies to encourage the development of the PCB industry.
In addition, the “New Energy Vehicle Industry Development Plan (2021-2035)”, “Dual Gigabit Network Coordinated Development Action Plan (2021-2023)”, “5G Application “Sailing” Action Plan (2021-2023)” 2023)” and other industrial policies to support and guide the development of 5G communications, new energy vehicles and other fields, thereby promoting the development of the PCB industry.
The support of national policies will provide a broad development space for the PCB industry and help the transformation and upgrading of the PCB industry.
The current situation of PCB industry
China has become a global PCB manufacturing center
Benefiting from the transfer of global PCB production capacity to China and the vigorous development of downstream electronic terminal products, China’s PCB industry as a whole shows a rapid development trend. According to statistics, in 2021, China’s PCB output value is 77.69 billion US dollars, and the global output value is 116.45 billion US dollars, and China’s proportion is as high as 66.72%.
With the rapid development of 5G, big data, artificial intelligence, Internet of Things and other industries, as well as the advantages of industrial support and cost, it is expected that the market share of China’s PCB industry will continue to increase in the future.
The scale of China’s PCB market continues to expand
China has a healthy and stable domestic demand market, and the market scale of China’s PCB industry has been expanding in recent years.
At this stage, technological changes such as cloud computing and the Internet of Things are mainly brought about by 5G, which helps the growth of 5G base stations, communication equipment and new energy vehicles, thereby driving the development of the PCB industry. According to statistics, the market size of China’s PCB industry will reach 430.755 billion RMB in 2021, a year-on-year increase of 4.36%.
Multilayer boards are the mainstream of the market
At present, China’s PCB industry is in a critical period of iterative upgrading. From the perspective of product structure, multi-layer boards are currently the mainstream of the PCB market, accounting for 39.91% in 2021. Secondly, flexible boards and HDI boards also account for a large proportion.
China’s PCB market has formed a multi-party competition pattern among Taiwan-funded, Hong Kong-funded, US-funded, Japanese-funded and local domestic-funded enterprises.
Among them, foreign-funded enterprises generally invest in large scales, and they also have certain advantages in production technology and product specialization; there are a large number of local domestic-funded enterprises, the industry concentration is low, and there is still room for improvement in the level of industrialization.
Avary Holdings is the main leader in China’s PCB industry, and its revenue scale is much larger than that of other companies. In 2021, its PCB sales revenue will be 33.315 billion RMB, with a market share of only 7.73%. The total PCB sales revenue of the following twelve companies is 104.436 billion RMB, and the market share is only 24.24%. It can be seen that the concentration of China’s PCB industry needs to be improved.