PCB industry: 5G commercial landing to promote the high growth of PCB demand in the future focus on high-level HDI and packaging substrate

The vigorous development of 5G communication and the high growth of server industry drive the demand for communication board

According to Prismark, the downstream communication industry PCB market size in 2018 is $11.692 billion, and will reach $13.747 billion in 2022, with a compound annual growth rate of 6.2% from 2017 to 2022. According to our calculation of the wireless base station segment, the global market size of PCB used in 5G wireless base station construction is about 13.365 billion yuan in 2019, and will peak at 45.163 billion yuan in 2022. In 2018, the server market exploded, driving the demand for high - level boards. In the future, 5G construction will further expand the demand for servers and promote the upgrade of server products, and the server PCB market is expected to continue to expand. Communication board business manufacturers in the next 2-5 years revenue considerable.

Automotive electrification and intelligence bring new growth space for automotive PCB market

In 2018, the output value of automotive PCB was 7.6 billion dollars, and it is expected that the global output value of automotive PCB will reach 10.171 billion dollars in 2023, with CAAGR of 6%. It is estimated that in 2023, PCB production of conventional fuel vehicles will decline to $4.149 billion, with a CAAGR of -5%. The output value of new PCB in automobile electrification was 5.437 billion USD, with CAAGR up to 23.61%. The new PCB demand for automotive intelligent network connectivity was $585 million, and CAAGR was 10.54%. Safety automotive plate production threshold is high, the domestic market competition is small, manufacturers in the future profit space is huge.

In recent years, consumer electronics continue to innovate, for consumer electronics with PCB to create new growth space

According to Prismark, PCBS used in consumer electronics were worth $24.171 billion in 2018 and are expected to reach $28.087 billion in 2022, with CAAGR at 4.2%. In the segmented field, the smart wearable device market has witnessed explosive growth, with the shipment volume reaching 135 million in 2018 and 205 million in 2023. CAAGR from 2018 to 2023 is 23%, driving the growth of FPC demand. 5G will also become a new growth point for smartphones, with 725 million 5G mobile phones expected to be shipped in 2023, driving demand for high-end PCB boards such as SLPS and high-end HDI. FPC as the main business, with SLPS and high - level HDI production capacity will see new revenue growth. It is suggested to pay attention to the domestic FPC leader and Pengding Holdings with SLP mass production capacity, Dongshan Precision, a major domestic FPC manufacturer, and Zhongjing Electronics with potential small-batch high-order HDI mass production capacity.

China is currently dominated by low - and medium-end products, which are expected to be replaced by domestic products in the high-end product market. High-end PCB manufacturers have good prospects for future development.

The global market for high-end PCB products is dominated by overseas players, but due to trade frictions and strong demand from China's own electronics brands, the market prospects for high-end PCB manufacturers in China are promising. By expanding financing channels, increasing production and R&D investment, and continuously expanding production capacity, leading domestic PCB enterprises will continue to increase their market share in the global high-end PCB products.

5G base station with PCB double increase in price and quantity leading companies since the boom degree increased this year

2019 is the first year of 5G industry. The explosive growth of 5G industry also brings new momentum to PCB field. With the iteration of 5G technology, the product structure of PCB is also differentiated, and the multilayer board still occupies the mainstream position in the current PCB market. With the rapid development of electronic circuit industry technology, the integrated functions of components are increasingly extensive, and the high density requirements of PCB are more prominent in electronic products. High-end PCB products such as high multilayer board gradually occupy the dominant position in the market. If the demand is estimated, the price and quantity of PCB for 5G base station will increase, which will strongly drive the demand for PCB use.

5G base material full outbreak PCB usher in new growth momentum

PCB Chinese name printed circuit board, also known as printed circuit board, is an important electronic component, is the support body of electronic components, electronic components electrical connection carrier.

The downstream of PCB industry covers almost all electrical circuit products. The most core and most valuable application fields include communication equipment, computer, consumer electronics and Automotive electronics. With the development of electrification and automation in human society, PCB has been used more and more widely, and there is no other alternative for the time being.

According to NTI data, in 2016, the number of PCB companies in the world reached 2,800, of which half were from the Chinese mainland, and 2,300 were from local raw material suppliers and special equipment manufacturers. However, the largest number of the top 10 manufacturers in the world are Taiwan-funded enterprises, while the total number of mainland PCB manufacturers is large, but small scale, low concentration.

Previously, for the domestic PCB industry, the number of enterprises but the proportion of revenue is not the world's first. Specific data show that in 2016, the largest number of enterprises in the top 100 is mainland China, the number of enterprises reached 45, accounting for 39.8% of the global proportion; But total revenue was only $10.362 billion, or 20.4 percent.

With the industrial transfer of PCB and integrated circuit industry as the representative of a new wave of global electronics industry capacity transfer wave, mainland manufacturers ushered in growth opportunities. As of August 31, the end of the publication of the electronic industry, 19H1 industry revenue 976.376 billion yuan, an increase of 13.73% compared with the same period last year, the growth rate is flat, the growth rate is the passive components and PCB as the representative of the component plate. 5G substrates, such as soft boards, high-end high-speed materials and PCB, are comprehensively distributed, benefiting from the strong flexibility of 5G and the certainty of domestic substitution.