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- January 5, 2023
- News
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- 06 mins
China’s PCB begins to expand to new energy vehicle boards
Chinese circuit boards expand into new energy vehicles
The beginning of a new round of industrial expansion should belong to the “new cars”.
New cars are not limited to new energy vehicles, but also intelligent networking.
Intelligent networked vehicles have become the strategic commanding heights driving the development of AI, information communication, big data, cloud computing, etc, and also the strategic direction for the development of the global automotive industry.
In the field of PCBs, the integration of circuit boards with new energy is getting closer.
Even China’s newly listed PCB manufacturer Camelot Electronic is also known as the largest PCB supplier in the CATL. Its chairman Li Jilin said, “We are committed to becoming a first-class manufacturer in the field of new energy vehicle circuit boards in the world and a well-known enterprise with strong competitiveness in China’s circuit boards.”
He also made it clear that this IPO Camelot Electronics intends to use the funds raised for the construction of high-end printed circuit boards for new energy vehicles. After the project is put into production, it can form an additional annual production capacity of 1.2 million square meters of rigid PCB, HDI board and rigid-flex PCB, enrich the company’s product categories and expand the company’s PCB production capacity.
At present , the scale of China’s auto parts industry has reached nearly 5 trillion RMB, and the future will be a period of centralized explosion. Many circuit board companies are focusing on the development of new energy vehicles and the continuous upgrading of automotive software and hardware.
The leading Wus Printed Circuit also stated that the performance of the automotive board market is expected to exceed the overall PCB market in the next five years.
It said that driven by various subversive trends such as electrification, intelligence and networking in the automotive industry, more and more electronic technologies are applied to automotive systems, and the proportion of automotive electronics in vehicle manufacturing costs continues to increase. It has become an important symbol to measure the level of modern automobiles.
With the emergence of emerging demand in downstream fields such as automotive electronics, wearable devices, industrial control, medical equipment, and 5G communications, the PCB industry has ushered in new growth points. The rapid expansion of China’s circuit boards into the automotive field shows that the future of new energy vehicles in China or other countries is highly optimistic.
In fact, if you rely too much on consumer electronics such as smartphones, you can worry about future Chinese circuit board orders or revenue generation. As we have seen recently, the supply chains of manufacturing giants such as Apple, Google, Microsoft, and Japan and South Korea are accelerating their transfer to India and Vietnam. And this transfer of overseas production has dealt a heavy blow to many manufacturing industries in China .
Anyway, the new round of expansion of China’s circuit boards for automotive boards is just optimistic about the future of the broad market for new energy vehicles. From last year’s large expansion of copper clad laminates, to the crazy expansion of IC substrates in the first half of this year, and now to the rapid expansion of new energy automotive boards, it is just the three great leaps of Chinese circuit boards, or the new three opportunities to change.
New energy must shift from vehicle to industrial ecology
The trend of the era of automotive circuit boards is an important change in the new generation of industry. It is from fuel to electrification, and then to intelligent “dual drive”. The transformation of China’s electronics from consumer electronics to self-driving cars is illustrating the important trend of cars moving from oil and gas to electrification under the integration of high-speed artificial intelligence and 5G applications, as well as new energy and new technologies.
In fact, this year, all circuit board companies that still rely on consumer electronics, smart phones, watches, etc., have suffered a major impact on their performance. Only by taking a new turn can the performance be better.
In the future, the automotiveization of China’s circuit boards will present the following trends:
1. The car ecology is just the beginning
The car ecology is the arrival of the smart Vientiane ecology. The interpretation of the car ecology on the circuit board is only the beginning.
The manufacture of cars is no longer limited to the car itself. It is already an ecology.
At the same time, turning to cars is an inevitable trend. Looking at the current international situation and international technological competition and exclusion, Chinese circuit boards and even semiconductors are bound to move towards a process of domestic substitution and self-improvement.
Looking at the current order trend, for example, Google has planned to transfer the Pixel production line to Vietnam. According to the report, Google expects Vietnam to supply it with as many as half of its Pixel phones next year. Also, so is Apple. Some of Apple’s 2022 iPhones will also be produced in India, while Apple has previously produced iPads and Apple Watches in Vietnam. According to Apple’s recent list of 200 top suppliers, about 10% of them are already in Vietnam. From this point of view, consumer electronics is no longer reliable.
All these show that the shift is inevitable, and it is also the inevitable trend of the international industry. It is imperative for circuit boards to shift from the traditional demand for smartphones to automotive boards.
2. Electrification is the root of industry
Traditional energy has been severely impacted by the epidemic and international wars in recent years, and cannot even meet the needs of current industries. Naturally, under the rapid development of new technologies and new materials, electrification becomes the root of the industry. Other new energy, such as hydrogen energy, are also rapidly developing and replacing the previous oil and gasification.
Electrification is not only the root of the industry, and it is even more the root of the industry for the domestic substitution of Chinese circuit boards.
In the context of electrification, the chain of the car has also changed from a single car to a whole car ecology, and it has also extended a lot of room for the development of circuit boards. The energy storage of the car, the copper foil of the battery, the link between the car and the society, and the construction of the digital ecology…these are all inseparable from the support of the circuit board.
3. New energy must shift from vehicle to industrial smart linkage ecology
The car is just a microcosm of the transformation and upgrading of the industrial ecology, or the next important performance at the moment. But the car is not the end, the real future of the circuit board is the endless ecological chain of the industry.
From automobiles to energy storage, digitization, and virtual displays. Such as the arrival of an important era of the metaverse, including the acceleration of the era of high-definition large screens, the space for circuit boards is rapidly expanding.
From smart hardware, to smart phones, to the multiple smart terminal Vientiane links derived from car chains, this is the huge growth market space for circuit boards. With the replacement process of automobiles from gasification to electrification, it is very possible that China’s automotive circuit boards will surpass the overall PCB market in other fields in the future.
Under the background of global new energy, Chinese circuit boards must also shift from car to industrial ecology. China’s circuit boards will also evolve from the rapid expansion of automotive boards to the era of huge “full industry” replacement and upgrading in the future.
