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Since July, Major PCB Manufacturers Including Omway Electronics And KB Group Have Issued Price Increase Notices. Under The Double Pressure Of Environmental Protection And Rising Prices Of Raw Materials, More And More PCB Manufacturers Have Made A Concession And Chosen To Raise Prices. The Entire PCB Industry Will Also Usher In A New Situation After This Wave Of Price Increases, And The Overall Price Increase Is Expected To Be 20%-30%.

Aug 06, 2018

Due to environmental policies and raw material pressure, PCB manufacturers have no choice but to make concessions.

The importance of PCB to electronic products is self-evident, but the serious environmental pollution problems brought about by the production process cannot be ignored. Especially in the current ecological and environmental problems, green environmental protection has been highly valued by the government, with strict standards. In order to respond to the government's call to achieve sustainable development of the industry, major PCB manufacturers have made industrial adjustments and improved product manufacturing processes, which not only directly increased the price of accessories and labor costs, but also led to an increase of industry threshold.

At the same time, the rising prices of materials have also threated to the PCB companies. The data shows that the cost of PCB materials accounts for about 33%, for CCL, it accounts for 18% to 20%. Copper foil is the most important material for the production of CCL, accounting for about 30% (thick board) and 50% (thin board) of the cost of CCL. Due to the shortage of copper foil, the prices of various materials continue to rise. From the beginning of 2016 to the present, PCB standard copper foil prices have risen by more than 50%, and copper foil processing fees and effective CCL prices are higher than the original average. 100% and 50%.

Under the double pressure of environmental protection and rising raw materials prices, many large PCB factories began to gradually "head down" and chose to increase prices. It is understood that from the end of 2017 in Kunshan, Jiangsu, to Zhuhai, Shanghai, and then Shenzhen, the entire PCB industry will usher in a new situation after this wave of price increases, the overall expected range of 20 -30%.

It can be seen that with the continuous increase in price of PCB boards, some uncompetitive enterprises have begun to withdraw, and the competitive landscape has gradually tilted toward large factories with bargaining power, environmental protection indicators and capacity reserves, resulting in an increase of industry threshold.

At present, China's manufacturing industry is in the transition stage from low-end processing to high-value-added manufacturing. Material price increases, environmental protection, and strengthening to restrict enterprises to pay taxes according to law, are all powerful measures to improve the production capacity. Although enterprises have a lot of pain, it is inevitable for all walks of life to upgrade.


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