Status and trends of China's PCB industry in 2021

2021-02-04 08:25:19 Edward Qin 280

China is the world's largest producer of printed circuit boards:


At present, the PCB output value in Asia is close to 90% of the world's total, and China and Southeast Asia are accelerating in growth.


Since 2000, global PCB production capacity has continued to shift to China. In 2006, China surpassed Japan to become the world's largest PCB producer, and its output and output value both ranked first in the world. This is because of China's huge domestic demand market, low labor costs, and complete industrial facilities.


Domestic PCB layout:


According to statistics, about 90% of China's total PCB output value is in the Yangtze River Delta and the Pearl River Delta. Serial, due to the influence of factors such as the cost of coastal areas and the increasing environmental protection requirements, the PCB industry is gradually shifting from these areas with advanced electronic technology to provinces and cities with better industrial conditions in the inland.


Although the competitiveness of most domestic PCB manufacturers still lies in low-end products, some manufacturers have gradually entered the supply chain of Apple, a major international customer.


Under the general trend of gradual transfer of production capacity to the domestic market, it will take at least two years for Chinese manufacturers to become manufacturers of high-end PCB products.


In 2019, the market share of leading domestic companies was only less than 2%. At present, domestic manufacturers with pure domestic capital are small in scale, but their growth rate is much faster than that of other peers, and the industry concentration is gradually increasing. In the context of industry consolidation, large domestic companies with a scale of tens of billions are expected to emerge in the future.


Trends in the domestic PCB industry:


In the next few years, the PCB industry in mainland China will continue to maintain a compound growth rate of 3.7%, and the total industry output value is expected to reach 35.686 billion US dollars in 2022.


Today, PCB development tends to be miniaturized and high-density. China's PCB industry must strive to upgrade its own technology and improve its ability to manufacture high-end boards.


At the same time, through the PCB company's "large-scale, centralized" trend, large-scale PCB companies will gain an advantage in the future global market competition. However, small factories have limited funds, it is difficult to improve process technology, bargaining power is weak, and profit margins will continue to be squeezed.