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2022 PCB industry outlook report

  Main content:

  1. The market size of PCB
  2. PCB subdivision product structure
  3. Looking forward to the prospects of the PCB industry in 2022

    1. Policies are good for the development of the PCB industry
    2. The stabilization of raw material price fluctuations is conducive to the improvement of the profitability of the PCB industry
    3. The development of new technologies promotes the improvement of PCB production capacity and technological progress
    4. Downstream applications drive the development of the PCB industry
    5. The development potential of IC substrates in the field of PCB is huge

The market size of PCB

Statistical forecast of China's PCB output value in 2017-2022
In recent years, with the continuous introduction of advanced technology and equipment, China’s printed circuit board industry has developed rapidly, and its output value has grown rapidly.

At present, China has become the country with the fastest growth in the output value of printed circuit boards in the world. The data shows that the output value of printed circuit boards in China has increased from US$29.716 billion in 2017 to US$35.249 billion in 2020, with an average annual compound growth rate of 5.9%, higher than the global average growth level.

The proportion of China’s printed circuit board output value in the total output value of the global printed circuit board industry has also increased from 31.1% in 2008 to 53.8% in 2020, ranking first in the world.
With the rise of Chinese brands of printed circuit boards in China, Chinese enterprises are actively expanding production. On February 9, 2022, SCC disclosed that the company issued 23,694,500 shares to 19 specific objects at an issue price of 107.62 yuan per share, raising a total of funds. 2.55 billion yuan, mainly used for high-end flip-chip IC carrier product manufacturing projects to enhance the company’s core competitiveness, improve revenue levels and profitability.

on February 8, 2022, the board of directors of Fastprint reviewed and approved a proposal , will invest about 6 billion yuan in two phases to build an intelligent factory for FCBGA packaging substrates with a monthly production capacity of 20 million pieces. This investment project is expected to become a new performance growth point for the company after it reaches production.

While Chinese enterprises are actively expanding production, they will continue to drive the trend of China’s future printed circuit board industry to transfer to China. It is expected that the output value of the printed circuit board industry will reach US$38.936 billion in 2022.

Well-known research institutions in the US electronics market also predict that China’s printed circuit board industry will grow in 2025. The industrial output value will reach 46.04 billion US dollars, accounting for more than half of the global output value.

PCB subdivision product structure

China's printed circuit board subdivision product structure

At present, China’s printed circuit board subdivision products mainly include six types of multi-layer boards, flexible boards, HDI (high-density interconnection boards), double-sided boards, single-sided boards, and packaging substrates. The data shows that multi-layer boards account for the largest proportion of China’s printed circuit board subdivision products, reaching 45.97%, far exceeding other products; followed by flexible boards, accounting for 16.68%; HDI accounted for 16.59%.

In addition, the proportions of double-sided, single-sided, and package substrates were 11.34%, 6.13%, and 3.29%, respectively.

In addition to the excellent circuit board blessing, new electronic products also need suitable and high-quality components to escort the PCB circuit board. However, the procurement of electronic components is a major problem faced by the majority of electronic companies. The process is time-consuming and labor-intensive, and the efficiency is extremely low.

Looking forward to the prospects of the PCB industry in 2022

Policies are good for the development of the PCB industry

As an indispensable basic component in modern electronic equipment, printed circuit boards play a key role in the electronic information industry chain. Therefore, the Chinese government and industry authorities have launched a series of industrial policies to support the printed circuit board industry. And encourage, not only “high-density interconnected laminates, single-layer, double-layer and multi-layer flexible boards, rigid-flex printed circuit boards and packaging carrier boards, high-density high-fine lines (line width / line spacing ≤ 0.05mm) ) Flexible circuit boards” are included in the catalogue of industries encouraged for foreign investment.

It is also proposed to further implement intelligent manufacturing and green manufacturing projects, develop a new service-oriented manufacturing model, and promote high-end, intelligent and green manufacturing. Cultivate advanced manufacturing clusters, and promote the innovation and development of industries such as integrated circuits, aerospace, ship and marine engineering equipment, robots, advanced rail transit equipment, advanced power equipment, construction machinery, high-end CNC machine tools, medicine and medical equipment.

A good policy can promote the development of the printed circuit board industry, but in the end, it must be based on the self-requirement of the enterprise to last for a long time. With the development of printed circuit boards towards new products and high-end industries, the quality requirements for PCB circuit boards are gradually increasing.

The stabilization of raw material price fluctuations is conducive to the improvement of the profitability of the PCB industry

The stabilization of raw material price fluctuations is conducive to the improvement of the profitability of the printed circuit board industry.

The material cost of printed circuit boards accounts for up to 60%, of which copper clad laminate (CCL) accounts for the highest proportion, accounting for about 30% of the cost of printed circuit boards. They account for 42.1%, 19.1% and 26.1% of their costs respectively, and the total cost accounts for nearly 90%.

Copper prices have been rising all the way since April 2020, reaching a peak of $10,725/ton in May 2021, and then entering a stage of fluctuating decline, currently between $9,000-10,000/ton, and prices are expected to loosen further in 2022. In 2021, the price of epoxy resin will fluctuate and rise sharply, and it is currently about 27,000 RMB per ton. With the introduction of environmental protection equipment and the improvement of the global copper price market, it is expected that epoxy resin will gradually fluctuate and stabilize in the future. Electronic yarn accounts for 90% of the cost of electronic glass fiber cloth.

According to a consulting company, the price of glass fiber yarn has gradually started to fall since October 2021, and the overall quotation has been less than 17,000 RMB per ton. At present, the downstream 7628 electronic cloth in the market The market price dropped to about 6 RMB per meter.

As the prices of the three major raw materials gradually fluctuate and stabilize, the price increase of copper clad laminates will slow down, and the profitability of the printed circuit board industry is expected to improve.

The development of new technologies promotes the improvement of PCB production capacity and technological progress

The development of new technologies promotes the improvement of printed circuit board production capacity and technological progress.

The rapid development of new technologies promotes the increase in the production capacity of printed circuit boards. With the maturity of new technologies such as 5G, cloud computing, and AI, the construction of data centers has accelerated, and server shipments have continued to rise.

According to IDC data, global server shipments will reach 12.2 million units in 2020, with a shipment value of $91.01 billion. will continue to grow. Server demand drives the incremental market of printed circuit boards.

According to the forecast of a well-known research institution in the US electronics market, the global output value of server printed circuit boards will increase from US$5.692 billion in 2020 to US$6.765 billion in 2024.

The rapid development of new technologies promotes the advancement of printed circuit board technology. 5G high-frequency technology puts forward higher requirements for circuits, and the communication frequency band is further improved. In order to meet the needs of high frequency and high speed, and to deal with the problems of poor millimeter wave penetration and fast attenuation, the performance of printed circuit boards will also continue to develop, and to find substrate materials that meet the high frequency application environment and achieve quality in China’s printed circuit board industry leap.

In the future, in the context of accelerated penetration of emerging technologies such as 5G communications, cloud computing, big data, artificial intelligence, industry 4.0, and the Internet of Things in China, it is expected that China’s printed circuit board industry will enter a new cycle of technology and products.

Downstream applications drive the development of the PCB industry

Downstream applications drive the development of the printed circuit board industry?

In order to adapt to the development of the downstream electronic equipment industry, the investment of enterprises in technology research and development and equipment continues to increase, and printed circuit boards continue to move closer to the direction of high precision, high density and high reliability, and continue to reduce size and improve performance.

The application fields of printed circuit boards are becoming more and more extensive, especially in the field of automotive electronics. Printed circuit boards are used in four major systems: power control system, safety control system, body electronic system, and communication.

At the same time, with the development of autonomous driving technology and new energy vehicles, automotive printed circuit boards will usher in a golden period of development.

According to data from the China Automobile Association, China’s new energy vehicle sales in December 2021 (4.230, 0.03, 0.71%) It reached 531,000 units, a year-on-year increase of 114.11% and a month-on-month increase of 18%.

The auto industry predicts that sales will exceed 5 million units in 2022. Compared with traditional fuel vehicles, the three core systems of battery, motor and electronic control of new energy vehicles have increased the demand for printed circuit boards.

According to the prediction of a famous research institution in the US electronics market, the global output value of printed circuit boards for vehicles is expected to reach 88% in 2024. One hundred million U.S. dollars. It can be seen that the rapid development of the downstream electronic equipment industries will further drive the development of the printed circuit board industry.

The development potential of IC substrates in the field of PCB is huge

The development potential of IC substrates in the field of printed circuit boards is huge.
The market space for IC substrates in China is huge.

According to the forecast of a well-known research institution in the US electronics market, the global IC substrate industry will reach US$12 billion in 2021, and it is expected to reach US$16-17 billion in 2025.

Assuming the market penetration rate of IC substrates of Chinese manufacturers From 4% to 6%, the scale of China’s IC substrate industry is expected to reach 7 billion yuan in 2025.

In addition, the printed circuit board solution is the mainstream solution for Mini LED substrates. According to the forecast of major research institutions, the shipment of Mini LED backlight modules will reach about 170 million in 2025, and the market size of Mini-LED printed circuit boards is expected to reach $3.4 billion.

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