PCB News - PCB industry investment and analysis

In the era of low profits for electronic products, price wars have changed the supply chain. The total output value of my country's PCB industry reached 58.84 billion yuan, an increase of 8.6% year-on-year. The average revenue compound growth reached 20%, and the average compound growth rate of net profit attributable to the parent company Reached 27%, the following is the PCB industry investment analysis.

Due to the concentration of downstream industries and the relatively low cost of labor and land, China has become the region with the strongest development momentum. my country surpassed the United States for the first time in 2017 and became the world's second largest PCB producer. The proportion of output value has also increased from 8.54% in 2000 to 15.30%, which has nearly doubled.

As of 2018, my country's PCB industry has newly planned investment of 95.5 billion yuan, and 72 new investment projects, with an average investment of 1.3 billion yuan per project. The newly-increased planned investment in the first to fourth quarters was 18.5 billion yuan, 25.4 billion yuan, 41.2 billion yuan, and 10.4 billion yuan, accounting for 19.3%, 26.6%, 43.2%, and 10.9% respectively. The PCB industry analysis pointed out that the new planned investment in each quarter is more than 10 billion yuan, of which 41.2 billion yuan in the third quarter is the peak of new investment projects.

From the perspective of the distribution of new planned investment products, there are 63 new planned investment projects for PCB boards, and the newly planned investment of 79.6 billion yuan accounts for 83.4%. The PCB industry investment analysis pointed out that there were 6 new planned investment projects for copper clad laminates, and the newly planned investment amount of 6.8 billion yuan accounted for 7.1%. PCB materials mainly count copper foil, fiberglass cloth and ink. There are 6 new planned investment projects, and the newly planned investment of 9.1 billion yuan accounts for 9.5%.

From the perspective of the distribution of corporate market revenue, only 3 of the top 10 PCB companies in mainland China are domestic-funded companies; of the top 20 companies in terms of revenue, only 6 are domestic-funded companies. Among the top 10 and top 20 PCB companies in terms of revenue, domestic companies accounted for 30%. However, Dongshan Precision and Shennan Circuit have entered the top 5.

At present, there are about 1,500 PCB companies in my country, forming a multi-party competition pattern of Taiwan-funded, Hong Kong-funded, US-funded, Japanese-funded, and local domestic-funded companies. Among them, foreign-funded enterprises generally have relatively large investment scales and have certain advantages in production technology and product expertise; there are many domestic-funded enterprises, but there is still a certain gap in the scale and technical level of enterprises compared with foreign-funded enterprises.

Among them, my country's printed circuit industry is mainly distributed in the southeast coastal areas, which is also related to the large demand for water in the PCB industry. These areas are relatively rich in water resources. The Yangtze River Delta and Zhuhai Delta add up to the total amount of the country. 90%, the PCB industry investment analysis pointed out that the current ratio of the Yangtze River Delta to the Pearl River Delta is about 1:1.

my country's boards (single-sided, double-sided, multi-layer, HDI boards) accounted for 83.8% of the total, of which 50% of the multi-layer boards accounted for the largest proportion, followed by soft boards with 15.6%. Due to the pressure of oversupply, most manufacturers entered a price war, and the growth of output value was lower than expected. With the continuous expansion of production capacity of HDI boards, the output value of HDI boards in 2018 has grown by as much as 40%, and the proportion reached 13.6%. In the past, the mainstream single and double panels have been declining year by year.

In the next five years, my country's printed circuit board market, driven by the domestic electronic information industry, will continue to grow at a rate higher than the global growth rate. It is estimated that by 2022, the scale of my country's PCB market will reach 35.69 billion U.S. dollars. However, the Pearl River Delta is still the most important and largest PCB industry R&D and production base in my country, which concentrates about 60% of the country's enterprises and PCB production capacity. The above is all the content of the PCB industry investment analysis.