PCB News - Future growth of PCB board and FPC board​ Industry under 5g tuyere

The economic output under 5g tuyere will reach 100 billion US dollars, which will promote the future growth of PCB board and FPC board Industry.

As the main direction of the development of new generation mobile communication technology, 5g will become an important driving force to promote the national economic and social development and promote industrial transformation and upgrading.

The Party Central Committee and the State Council attach great importance to the development of 5g, and clearly put forward the requirements for accelerating the development of 5g in China. The 13th five year plan points out that we should actively promote the development of 5g. China's documents such as 5g business launched in 2025, the outline of national information development strategy, and the 13th five year plan of information and communication industry have also made relevant arrangements for the R & D, standard and industrial layout of 5g technology.

Compared with 4G technology, 5g network has stronger performance, and supports ultra-high speed, ultra-low delay and super large connection application scenarios. In the past two years, the growth of smart phones, personal computers and tablet computers has generally slowed down, and the pulling effect of consumer electronic products on the PCB market has weakened, resulting in a decline in PCB demand. 5g application will greatly promote the future growth of PCB industry.

It can be seen from the above layout that China is formulating the world standard of 5g.5g, leading the trend of interconnection and mastering the core 5g leading technology, which will ensure that China will be in the leading position of world communication technology in the next decade at least. This will also provide a superior geographical advantage for China's PCB industry to win the world market and guarantee the exchange of advanced technologies.

5g will bring hundreds of millions of times value growth for China's PCB industry. China's digital development will be easier, more investment in the Internet industry, so as to stimulate data consumption and improve national competitiveness. By 2030, 5g related industries will create about 2.9 trillion yuan of economic added value and 8 million new jobs. The world is in the "critical period" of 5g standard formulation. 5g applications require the government to build Internet infrastructure to create a better business environment.

According to Wenku, director of Communications Development of the Ministry of industry and information technology, "after the second stage of technology experiment, China's 5g is basically equivalent to graduating from primary school and will soon enter secondary school. The next focus is on technical testing and testing in the pre commercial phase, an important stage in China's 18-year-old adult stage. "It is understood that in September 2017, China has begun to draft the test specifications for the third phase test, and has started the construction of 5g test environment. The transmission project will be completed by the end of 2017, the construction of the test environment will be completed in March 2018, and the third phase of testing will start in the first quarter of 2018.

With extensive market demand, the output value of FPC continues to grow

(1) Since 2008, the market of consumer mobile electronic products such as smart phones and tablet computers has grown rapidly, which greatly promotes the development of FPC Industry. At the same time, automotive automation, networking and electrification also expand the demand for on-board FPC. In addition, in recent years, new wearable intelligent devices, UAVs and other consumer electronics markets have also brought new growth space for FPC.

(2) The rapid development of downstream electronic products has brought continuous demand power to FPC Industry. Therefore, since 2008, the global FPC output value has continued to grow steadily. As of 2016, the global FPC output value has achieved a compound growth rate of 6.5%, accounting for more than 20% of the PCB industry. According to prismark, the annual production of FPC is expected to exceed $12.5 billion in 2021 and is expected to rise to 21% of PCB.

(3) At the same time, presmark expects that smartphones will still account for the largest proportion of FPC production, the proportion of tablets and laptops will decrease, and the proportion of other consumer electronic products (mainly wearable devices) will increase significantly.

(4) Under the influence of the eastward migration of FPC Industry, China has become the fastest growing FPC market in the world. In 2016, the output value of FPC in China reached 35.4 billion yuan, accounting for 50% of the global share.

The innovation of downstream end products opens up new demands for FPC board

Consumer mobile electronic products based on smart phones and wearable devices will continue to develop in the direction of miniaturization and lightweight, as well as the development of automotive automation, networking and electrification, which will create new demand growth points for FPC Industry.

The innovative smart phone function has pushed the use of FPC to a new level

(1) Smart phones have gradually become the rigid demand of people's daily life, and the replacement of functional machines has been basically completed. In 2016, the penetration rate of smart phones increased by more than 1.47 billion, but the number of smart phone shipments decreased by more than 1.47 billion in 2016. However, the growth rate of China's smartphone shipment is higher than that of the global market, and the penetration rate of smart phones is more than 90%. In the future, the incremental factors of smart phones will come from the old replacement and innovative functions to attract users to replace their mobile phones.

(2) Under the influence of Apple's firm use of FPC board, the consumption of FPC board of mainstream smart phones has reached 10 * 15 chips, which effectively promotes the demand of FPC board. The emergence of new functions continues to expand the application of FPC in smart phones, fingerprint recognition continues to penetrate, and the rapid development of integrated screen, face recognition tester, wireless charging and flexible OLED screen carrying. These technological innovations continue to stimulate the comprehensive upgrading of mobile phone related supply chain, and indirectly promote the use demand and technology upgrading of FPC board.