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Domestic Printed Circuit Board Industry Concentration Increase

Jul 23, 2018

In the short-term, the appreciation trend of the RMB against the US dollar has been reversed since April of the second quarter, which is good for domestic export-oriented PCB companies. Domestic PCB manufacturers have seen strong growth in orders since June and are gradually entering the peak season in the second half of the year. In the medium and long term, the global PCB industry's eastward migration path has been upgraded from the capacity transferled by the original foreign capital to the property transferof the accelerated rise of domestic capital. Under the big cycle of the global PCB industry boom, the domestic leading manufacturers benefited from the adjustment of domestic industrial structure and the increase of concentration. With the advantage of financing, they accelerated the expansion of scale, and through the intelligent manufacturing optimization and upgrading, they continued to leap into the scale of 10 billion.

 

The domestic industrial structure adjustment has achieved initial results. The domestic PCB industry is stronger and strong: the domestic PCB industry is affected by the upstream price increase and environmental protection and limited production, and orders are gradually shifted from backward production capacity to domestic capital manufacturers. Against the background of the rebound in the industry, domestic-funded enterprises have taken advantage of domestic financing advantages to rapidly expand their scale and increase market share. Domestic PCB production capacity is mainly concentrated on low-end products such as single/double-panel, multi-layer board and low-order HDI board. The orders are relatively scattered. At present, domestic-funded enterprises are more cost-effective in producing such products than foreign capital, and the order transfer trend is obvious.

 

In the process of industrial upgrading, manufacturers with intelligent manufacturing first to enter Industry 4.0 have more competitive advantages: the traditional PCB industry is a labor-intensive industry, but as the industry develops into a mature stage, low-cost, high-efficiency production becomes a long-term development of the enterprise. Core competition barriers. At present, some of the domestically-owned PCB manufacturers have taken the lead in automating and intelligent production capacity while gradually achieving large-scale production. Their efficient production line management capabilities have exceeded the industry-wide level.

 


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