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5G Commercial In The FPC Industry Is Looking Forward To A New Large-scale Expansion And Upgrading

Jul 30, 2018

With the official release of 5G standard SA scheme by 3GPP, as well as the overweight layout of 5G r&d, testing, industrial chain and application by the three major carriers, 5G commercialization has entered a comprehensive sprint period.

Industry insiders say that as the commercialization period of 5G approaches, it will lead to a sharp expansion of the relevant industry market, and the FPC (flexible circuit board) industry, an important component of mobile phones, will also gain a huge development opportunity and expect a new round of large-scale expansion and upgrading.

According to the white paper on 5G's economic and social impact released by the China institute of information and communications, 5G is expected to boost China's direct economic output by 6.3 trillion yuan and economic added value by 2.9 trillion yuan by 2030.

In the view of insiders, the advent of 5G era is also expected to start a new investment boom.

The FPC is one of them.

According to the data, the total global PCB output value in 2014 was $57.437 billion, of which the total output value of FPC was $11.476 billion.

With continued growth in applications such as smartphones, tablets, storage services and automotive electronics, total FPC production is expected to reach $13.832 billion by 2019, a compound growth rate of about 3.8%.

"The rapid development of 5G will also lead to the upgrading of new consumer electronics products.

For example, huawei and zte have all started trials of local area networks in major cities, which will inevitably lead to the upgrading and upgrading of mobile phone terminals.

As terminal manufacturers begin to develop and test the next generation of products, there is also a new demand for upstream industry supply.

"Currently, shangda has made a key layout in 5G related module technology and capacity to ensure maximum cooperation with downstream terminal manufacturers in 5G commercial product development and testing," said li xiaohua, chairman of shangda.

Many people in the industry also say that with the accelerated development of 5G, the domestic enterprises represented by electronics, dongshan precision and helitaitai are expected to achieve an accelerated rise.

However, it is worth mentioning that in the field of FPC, compared with Japanese and Korean enterprises, domestic enterprises have many shortcomings in technology, r&d capability and market share.

Li xiaohua also admitted that some FPC companies in Japan, Korea and Taiwan started early and have accumulated relatively long experience in technology and production. They also have certain advantages in the whole industrial chain, as well as the supporting of customers and suppliers.

"However, at present, the manufacturing capacity indicators of upper electronic reach more than 1.33, and the target of 2018 is 1.67.

At the customer end, the lyn value (the qualified rate of incoming material sampling) is over 98%, and the DPM value (the defect rate of the customer input product) is within 200PBM.

For example, the wire width, up to the latest electronic line can be 35 microns, the minimum diameter can be 50 microns.

In 2017, shangda electronics invested in the first domestic COF production line in pizhou, jiangsu province. After production, the line width can reach about 10 microns.

Currently, only three companies in the world can achieve the line width of 10 microns.

The gap between domestic FPC companies and foreign ones is not so great as how to make finer wires on thinner materials and how to improve the softness and bending resistance of products.

In addition, since the FPC industry is a heavy asset industry, in order to maintain the technological lead of products, it is necessary to invest in more automated equipment on the basis of expanding production capacity.

According to li, in 2016 and 2017, shangda invested about 100 million yuan in equipment every year.

"It is expected that in September, the COF project invested by shangda electronics in pizhou, jiangsu province, the entire main plant will be capped, and the equipment investment of the first test line will be about 200 million yuan.

The investment in the COF project represents a higher level of technology for the FPC industry.

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