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How Much Impact Will The Sino-us Trade War Have On The PCB Industry?

Jul 30, 2018

In 2017, the mainland will account for more than 50% of the world's PCB production capacity, and PCB products will be included in the us tax list. The tariff will be increased from 2% to 27%.

After several twists and turns, the sino-us trade war is likely to get worse. The sino-us trade war started on March 8, after several rounds of negotiations, no consensus has been reached.

Finally, on June 15, the United States announced a 25 percent tariff on 1,102 products worth $50 billion.

The future of a trade war is uncertain, and further deterioration is possible.

The trade war between Japan and the United States is a reference. Trade war is hard to change the industrial logic: the trade war between Japan and the United States lasted 30 years.

It covers industries ranging from textiles and steel to color televisions, cars and semiconductors.

Take the automobile industry as an example. In the 12 years after the us imposed a 100% tariff on $5.09 billion of luxury cars in 1995, Japan's auto industry started to grow at a compound rate of more than 8%.

PCB production to domestic migration, benefit for the next four years 5 g and automotive electronic global growth to 1.94% : from 2008 to 2017, mainland China PCB production rising global share, share from 31.11% in 2008 to 50.82% in 2017, China's PCB industry output value from $15.037 billion to $28.093 billion, compound annual growth rate as high as 6.45%, far above the global overall growth rate of 1.35%.

In the next four years, thanks to 5G base station construction and increased demand for automotive electronics, the compound growth rate of the global industry will increase to 1.94%.

The PCB industry as a whole is limited by trade wars, and in extreme cases it affects less than 3%. In recent years, China's PCB exports to the United States have maintained a trade volume of about $600 million.

China's PCB exports to the United States accounted for an increasing proportion of China's total PCB exports in that year, rising from 5.01 percent in 2008 to 6.39 percent in 2016, but accounting for less than 3 percent of China's overall domestic output.

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