China is the world's largest PCB industry, but the scale of the company is smaller than that of traditional powerhouses such as Japan and South Korea, and the industry concentration is low.
The production of low-end PCB products in Chinese PCB companies is relatively mature, and the research and development and manufacturing of high-end PCB products are in the initial stage. The competitiveness is not enough. Foreign enterprises occupy a considerable portion of the market, squeezing the local enterprises’ The survival space is also due to the small number of local companies with sufficient strength, which requires further R&D investment.Global PCB proofing service provider Jedobang understands that upstream materials for PCB companies, such as copper foil, are in short supply due to limited raw materials and complex processing technology, and have strong bargaining power for the midstream. The PCB industry is facing greater price pressure; upstream high-end Technology and products are monopolized by foreign giants, import dependence is high, domestic enterprises are not competitive, and the industry is working hard to develop high-end technologies and substitute imports. At the same time, the PCB industry’s bargaining power for downstream is generally affected by changes in downstream demand.
Market team from Stariver analysis, from the perspective of industrial development, high-end products such as packaging substrates and high-end products such as HDI boards will become an important direction. In 2016, with the global PCB industry going down, China's PCB industry continued to grow at a rate of 1.43% and developed steadily. South and Southeast Asian countries such as India and Thailand also show their huge development space with rapid growth. When the cost of labor and land in China rises, a large part of foreign companies will be transferred from China to these countries.Therefore: on the one hand, Jedobang is optimistic that China will continue to play a major role in the production and marketing of the PCB industry; on the other hand, Jedobang believes that in the future market competition of the Chinese PCB industry, high-end products, large-scale enterprises, extended industrial chains, and regions will appear. With characteristics such as uniform distribution, Chinese enterprises will gradually gain advantages through optimization concepts and advanced technology upgrades, so that they will become a true electronic power in addition to the country with a large output value. Based on this, we focus on recommending PCB companies with R&D strength and advanced technology from the perspective of the industry chain. It is recommended to focus on: Shennan Circuit, Jingwang Electronics, Shengyi Technology, etc.
In addition, we can pay attention to some upstream sub-sectors of PCB.
Although the current import dependence of high-end products is high, it is a listed company that is expected to make a breakthrough in technology in the future. Fiberglass cloth enterprises: Sinoma Technology, Changhai, China Jushi, Jiuding New Materials, Huajian Group. Synthetic resin: Hongchang Electronics, Puyang Huicheng. Copper foil: Tongling is colored. Copper clad laminate: Jinan Guoji, Shenghong Technology, Tongling Nonferrous Metals, Noord shares.
