PCB Technical - 5G commercial, high-frequency and high-speed copper clad laminate becomes a key material

5G commercial, high-frequency and high-speed copper clad laminate becomes a key material

The copper clad laminate industry is in the middle of the entire PCB industry chain, providing raw materials for PCB products. Copper clad laminate is a plate-like material made by impregnating electronic fiberglass cloth or other reinforcing materials with resin adhesive, drying, cutting, and stacking into a blank, and covering one or both sides with copper foil and hot pressing., Mainly used to make printed circuit boards (PCB), which play the role of interconnection, insulation and support for the PCB. The upstream of the industrial chain is raw materials such as electrolytic copper foil, wood pulp paper, fiberglass cloth, resin, etc., the downstream is PCB products, and the terminal industries are aerospace, automobiles, home appliances, communications, computers, etc.

5G commercial, high-frequency and high-speed copper clad laminate becomes a key material

5G was initially commercialized in 19, and the core material, high-frequency copper clad laminates and other products, the upstream raw materials are basically similar to traditional CCL. After being produced by downstream PCB manufacturers as high-frequency circuit boards suitable for high-frequency environments, they are applied to base station antenna modules and power amplifiers. Modules and other equipment components are finally widely used in communication base stations (antennas, power amplifiers, low-noise amplifiers, filters, etc.), automotive auxiliary systems, aerospace technology, satellite communications, satellite TV, military radars and other high-frequency communications fields.

The increase in communication frequency bands drives a substantial increase in the demand for high-frequency and high-speed boards

5G high-frequency technology puts forward higher requirements on the circuit. Radio frequency circuits with operating frequencies above 1GHz are generally called high-frequency circuits. In the process of mobile communication from 2G to 3G and 4G, the communication frequency band has developed from 800MHz to 2.5GHz. In the 5G era, the communication frequency band will be further improved. The PCB board will be equipped with antenna elements, filters and other components in terms of 5G radio frequency. According to the requirements of the Ministry of Industry and Information Technology, it is expected that the early 5G deployment will use the 3.5GHz frequency band, and the 4G frequency band will be mainly around 2GHz. Generally, electromagnetic waves with a wavelength of 1 to 10 millimeters in the 30-300 GHz frequency band are called millimeter waves. When 5G is commercially available on a large scale, the millimeter wave technology guarantees better performance: extremely wide bandwidth, the available spectrum bandwidth of the 28GHz frequency band can reach 1GHz, and the available signal bandwidth of each channel in the 60GHz frequency band can reach 2GHz; the corresponding antenna has high resolution and anti-interference performance Good, miniaturization can be achieved; propagation attenuation in the atmosphere is faster, and close-range secure communication can be achieved.

The increase in communication frequency bands drives a substantial increase in the demand for high-frequency and high-speed boards

In order to meet the needs of high frequency and high speed, as well as to deal with the problems of poor millimeter wave penetration and fast attenuation, 5G communication equipment has the following three requirements for PCB performance: (1) low transmission loss; (2) low transmission delay; (3) Precision control of high characteristic impedance. There are two ways to increase the frequency of PCB. One is that the processing process of PCB is more demanding, and the other is to use high-frequency CCL-the substrate material that meets the high-frequency application environment is called high-frequency copper clad laminate. There are mainly two indicators of dielectric constant (Dk) and dielectric loss factor (Df) to measure the performance of high-frequency copper clad laminate materials. The smaller the Dk and Df, the more stable, the better the performance of high-frequency and high-speed substrates. In addition, for radio frequency boards, PCB boards have a larger area and more layers, requiring higher heat resistance (Tg, high temperature modulus retention) and stricter thickness tolerances on the substrate.

PTFE is the optimal solution for antenna performance and fills the domestic gap.

PTFE is the optimal solution for antenna performance and fills the domestic gap. The Japanese PCB industry is accustomed to dividing high-frequency and high-speed substrates into four levels: PTFE-grade substrates, high-grade substrates, medium-grade substrates, and low-grade substrates according to the value of Df and Dk and the size of transmission loss. Different grades of substrates have different applications in the field of high-frequency microwaves. PTFE is an organic material with the best dielectric properties found so far. It has excellent dielectric properties and is the best choice for antenna substrates.

In the high-frequency CCL field, the U.S. and Japan occupy the mainstream market, and domestic substitutes are catching up

Rogers, the traditional leader that relies on the Asian market

High-frequency boards have the characteristics of high technical barriers and strong downstream bargaining power. The global leaders are mainly US and Japanese companies, and there is a large room for domestic substitution. According to our industry research, the gross profit margin of high-frequency CCL is around 40%, which is higher than other types. At present, global high-frequency boards are concentrated in suppliers from the United States and Japan, represented by Rogers, as well as Alon Materiel, Taikangli, isola, etc.; the representative supplier in Japan is Panasonic. Domestic high-frequency CCL such as Shengyi Technology and Huazheng New Materials have made good progress

Rogers, the traditional leader that relies on the Asian market

Rogers (Roger.Grop) is the world's leading specialty materials company, founded in Massachusetts in 1832. In the past 10 years, the demand for upgrading of communication generations has increased, and the company's business has grown with the growth of demand for new technologies and innovative solutions. The future Internet of Things and intelligent systems will promote greater demand for advanced engineering materials. With the multiplication of data volume and the demand for speed, bandwidth, and functionality, the company's advanced circuit materials and connection solutions are expected to continue to lead the world in the next generation of wireless networks, power amplifiers and smart antenna applications. At present, more than 70% of the company's revenue comes from international customers, and the Asian region's revenue contributes more than 30%.

Rogers (Roger.Grop) is the world's leading specialty materials company, founded in Massachusetts in 1832.

Benefiting from the replacement of communication cycles, the main business has grown steadily. In 2017, revenue and net profit began to accelerate growth. In the first three quarters, the growth rate of net profit attributable to the parent reached 81%, 136%, and 102%. Entering H2 in 2018 and Q1 in 2019, the company ushered in a new round of growth cycle, mainly benefited from The demand for high-frequency CCL materials such as 5G pre-commercial, multi-antenna technology, and automotive ADAS has increased.

Domestic-funded CCL manufacturers are catching up in terms of scale and technology, and HF is ready for production

Domestic substitution is imperative, and the monopoly of the United States and Japan has been broken. The relationship between high frequency and high speed is C=λ*v, and high frequency is a necessary and insufficient condition for high speed. High-frequency high-speed boards are mainly used in communication equipment such as base stations and servers. Shengyi Technology and Huazheng New Materials have broken through technical barriers through independent research and development, and the performance of many products has reached the world's top level.

Domestic-funded CCL manufacturers are catching up in terms of scale and technology, and HF is ready for production

The performance of Shengyi Technology's PTFE products has reached the international top level, and the performance of its GF220, GF265, GF300 and other series is comparable to the international high-frequency and high-speed version of the leader. In addition, the company's products have passed the certification of important customers such as Huawei, and have entered trial production in November 2018. The high-frequency board production capacity has been put into production in January 2019, achieving a breakthrough in the mass production of domestic wireless base station materials.

In terms of niche market share, players in Greater China (Mainland, Taiwan) dominate the market. Except for Panasonic, the top 6 CCL manufacturers are all manufacturers in the Greater China region, accounting for 50% of the market share. Traditional CCL technology reserves are conducive to helping players in Greater China take advantage of scale advantages and benefit from vertical integration. Shengyi Technology's business model for customers is more reasonable, and its product portfolio from entry-level to high-end is relatively diversified. It benefits from the overall upward trend by improving product portfolio and technology. In summary, the company has opened a comprehensive layout from base station substrates to consumer electronics terminal substrates for the arrival of 5G commercial use. The growth is worth looking forward to.

Domestic materials consider the supporting R&D capabilities of domestic board manufacturers, and the competitive landscape is expected to be adjusted

Domestic materials consider the supporting R&D capabilities of domestic board manufacturers, and the competitive landscape is expected to be adjusted

In the context of domestic substitution, the board factory's understanding of CCL and other core materials and processing technology is also considered. According to industry research, the relevant board manufacturers have provided several localized alternatives for Huawei and other related customers in the early stage. Therefore, CCL's domestic pioneers and the board factories with the leading progress in localized supporting programs are expected to develop rapidly.