1. China accounts for more than half of the global PCB market
Printed circuit board (pcb) products have been in commercial use since 1948, and they began to rise and be widely used in the 1950s. The traditional PCB industry is a labor-intensive industry with a lower technology intensity than the semiconductor industry. Since the beginning of the 21st century, the semiconductor industry has gradually moved from the United States, Japan, and Taiwan to mainland China. So far, China has become an influential PCB producer in the world, with PCB output value accounting for more than 50% of the world.In 2019, the global printed circuit board output value reached US $ 63.6 billion. According to the data of the Institute of Industrial Science and Technology of the ITRI, although Taiwan in China still won the global market share of 31.3% in 2018, the proportion of mainland China also reached 23%. In addition, the market share and growth rate are steadily increasing, gradually pushing Taiwan's leading position. Together, the two accounted for 54.3% of the global PCB output value, sitting firmly on the NO1 throne.
2. In 2019, China's PCB output value exceeded 34 billion multi-layer boards
China's electronic circuit industry is on the "industrial transfer" path, 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 mainland China. After years of accumulation, the domestic PCB industry has gradually matured. As the main production area for single-layer PCBs in mainland China, it is further extending to the high-end market.In recent years, the scale of China's PCB output has expanded year by year. According to the statistics of the "China Printed Circuit Board Manufacturing Industry Market Outlook and Investment Strategic Planning Analysis Report" released by the Foresight Industry Research Institute, China ’s PCB output value has reached US $ 20.17 billion in 2010. As of 2017, China ’s PCB output value has increased to USD 29.73 billion, a year-on-year increase of 9.7%, accounting for 50.53% of the world's total. Entering the end of 2018, the output value scale and growth rate of China's PCB industry have reached record highs, with the output value scale reaching US $ 34.5 billion, a year-on-year increase of 16.0%.
As downstream electronic products pursue light, thin, short, and small development trends, PCBs continue to develop in the direction of high precision, high integration, and thinness. However, compared with Japan, South Korea, Taiwan and other regions, PCB products in mainland China are still mainly low-end products such as single and double panels, multi-layer boards with less than 8 layers. Among China's PCB products in 2017, multilayer boards accounted for 41.5%.
3. The industry is mainly concentrated in Jiangsu and Guangdong
PCB products are used as basic electronic components, and their industries are mostly built around supporting areas in downstream industries. At present, there are about 1,500 PCB companies in mainland China, mainly located in areas with high concentration of electronics industries such as the Pearl River Delta, the Yangtze River Delta, and the Bohai Rim. They have a large demand for basic components and have good transportation and water and electricity conditions. Among them, Guangdong and Jiangsu provinces are highly concentrated. In 2017, Guangdong's PCB industry sales revenue accounted for 46.26% of the industry, and Jiangsu's 34.77%. The total of the two accounted for 81%, and the regional concentration was relatively high.4. Low concentration of enterprises foreign capital enterprises occupy the main market position
China's PCB industry has developed rapidly, but the initial output value contribution mainly comes from foreign-owned production capacity in China, and domestic-funded enterprises have weak competitiveness. According to CPCA statistics, in the PCB industry, foreign-funded manufacturers in China account for 58%. Although the number of domestic-funded manufacturers has increased, the scale is still relatively small. From the revenue data of domestic PCB companies in 2017, domestic-funded enterprises with a size of more than 1 billion accounted for less than 30%. In the top ten list of domestic PCB manufacturers, only two Chinese domestic companies are on the list. The top ten has a concentration of 40.18%. Chinese PCB companies are smaller and have a lower concentration.5. Emerging industries drive industry development. In the future, China's PCB output value will exceed 40 billion US dollars.
China is a global influential electronic information product manufacturing base and consumer market. With the continuous advancement of "Made in China 2025", it is emerging in emerging markets such as mobile Internet, Internet of Things, big data, cloud computing, artificial intelligence, and driverless cars. A number of well-known 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 issued action plans or planning solutions 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 5G communication equipment has higher requirements for communication materials and greater demand. Major operators will invest more in 5G construction in the future. Therefore, the communication PCB will have a huge market in the future. It is estimated that by 2022, China's PCB output value will exceed 40 billion U.S. dollars, and by 2024, the output value will reach 43.8 billion U.S. dollars, and the market scale has great room for improvement.
