The next few years, the global circuit board industry output will continue to grow, by 2022 the global circuit board industry output value will reach 75.6 billion US dollars.
PCB industry competition pattern is dispersed, China’s largest output value, the fastest-growing. Product category, the ordinary PCB profits thin as paper, profitability is not optimistic. Today, the layout of overseas PCB leading high-priority multi-layer PCB, flexible circuit board and the combination of soft and hard board, wide application areas, high value, market potential.
CCL is the most important raw material for PCB manufacturing, bargaining power is strong, and the high concentration of industry (the top five suppliers in the market share of about 50.1%), leading manufacturers bargaining power.
Mainland China has the highest proportion of CCL production in the world. However, its value-added products are low. High-end products depend on imports. The industrial structure is in the process of adjustment. Leading manufacturers are the first to achieve high value-added technology breakthroughs.
The upstream copper prices into the cycle, brings CCL and PCB enterprises new pricing opportunities.
Electrolytic copper foil is an important component of CCL and PCB. The electrolytic copper production capacity in the world and in Mainland China has not expanded in the past two years, but the capacity utilization rate has been increasing year by year.
Electrolytic copper foil has also been used as a lithium ion battery anode material collector, in recent years, the explosive growth of new energy vehicles, driven by lithium battery copper market in short supply, copper foil manufacturers have converted lithium foil, diversion part of the standard copper foil production capacity, Resulting in the supply of copper foil upstream PCB tension, sustained price increases, and has been transferred to the CCL and PCB link.
Copper prices, CCL and PCB manufacturers brings new pricing opportunities, CCL leading enterprises and high-end PCB suppliers in the process of cost-shifting to expand profit margins, to obtain performance flexibility to improve. Copper foil prices have brought the history of copper clad laminate and PCB enterprises to enhance gross margins, related companies rose 3-5 times share price.
Industry needs to pick up, into a new round of the economic cycle. The number of sub-sectors of the PCB downstream market demand for double-digit annual growth rate, a PCB industry growth momentum.
The rapid development of the automotive PCB market, automotive PCB market scale of up to 100 billion, but the certification cycle is long, the threshold is high; new energy vehicles bring PCB demand billions incremental market; small spacing LED market rapid expansion, more Layer PCB board demand; mobile communication technology with each passing day, the construction of high-density small base stations to drive high value-added PCB needs; China’s high-end server market growth, increasing PCB value added.