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Small And Medium-sized PCB Factories Encounter Downturn Alarms

Aug 03, 2018

In the second half of the year, with the domestic environmental protection rectification, the LED display industry upstream raw material PCB has sent price increases: July 4, including the world's largest PCB production capacity of the Jianye Group's Zhongxin laminated board company, and Shandong Jinbao and other land-based PCB indicator factories all reported that CCL news was raised in July. Vendors admit that because of the stricter environmental protection, the production cost will increase, and the price increase must reflect the cost trend.

As we all know, some accessories of LED display products, such as PCB boards, cabinets, etc., will cause relatively large pollution in the production process, and some small and medium-sized raw material suppliers are not in line with the current national environmental protection requirements, and have to be rectified. And industrial upgrading, which also indirectly increased the cost of these accessories. At the same time, the state has been carrying out supply-side reforms in recent years, and is committed to improving the profitability of industrial enterprises. Whether it is environmental protection upgrades or supply-side reforms, it will be continuous and long-term, which means that the price increase of such raw materials will continue.

In addition, the country began to conduct environmental audits for many electronic manufacturing and chemical materials industries, especially the new environmental protection tax this year, which further increased the production costs of enterprises. Therefore, some insiders predict that under the current increasingly strong environmental protection storm, there will be at least one wave of small and medium-sized PCB manufacturers facing the collapse of this year...

Of course, it will also have a profound impact on our downstream LED display industry, especially with the further development of small-pitch technology and the continuous upward movement of overseas and high-end markets. The demand for small-pitch LED industry has also increased, which has also driven the LED display industry to upstream raw materials. PCB board demand continues to be strong. The price increase of the PCB means that the relationship between supply and demand is once again out of balance, and raw materials are in a situation of short supply.

Is it a crisis or an opportunity? Whether it is rise or reduce in price, the market will always change. Only with a good hand can we maintain bargaining power and turn crisis into opportunity!

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