PCB Tech - China PCB from low-end to high-end

The printed circuit board (PCB) plays an important role as a link between the front and back in the electronic information industry. Without PCB, IC (Integrated Circuit) can never realize its function; military products, consumer electronics and high-tech electronic products can never operate successfully without PCB. In addition, the PCB board represents the achievements of modern science and modern management. As the foundation of the electronic information industry, PCB manufacturing has become a pillar industry of electronic information.

As a support device for electronic components and electrical connection carriers, PCB production has accounted for more than a quarter of the electronic component industry’s industrial output value as high as 60 billion US dollars. Due to its large domestic demand, relatively low labor costs, and the best related industries, China's PCB output has become one of the main countries in the world for PCB production, surpassing the United States and second only to Japan. China has become the world's largest PCB supply base, and China's PCB will naturally become an opportunity for world-renowned original equipment manufacturers (original equipment manufacturers) and electronic product manufacturers. This article will tell you why.

Active support from Chinese policy

As a strategic, basic and guiding pillar industry for the Chinese economy, the electronic information industry has become an important supporting force for the transformation and upgrading of China's manufacturing industry, which depends to a large extent on the development of the PCB board industry. In recent years, the State Council of China and the Ministry of Industry and Information Technology have formulated a series of policies and regulations to promote the development of the PCB industry, leading China's important PCB manufacturing companies to benefit from a series of positive reforms. policy.

A series of development policies completely cover the electronics manufacturing industry, intelligent manufacturing, low-carbon environmental protection, and cross-industry transformation. Information security has become the key word of the reform goal. China’s 13-year plan shows that a new round of technological revolution and industrial transformation has been fully prepared, and social informatization will develop in depth. In addition, the Made in China 2025 strategy has made the improvement of the overall competitiveness of China's manufacturing industry a leading goal, and has made the new generation of information technology a priority for development. Therefore, it will provide a broad development space for the development of China's electronic information industry; the overall transformation and upgrading will be carried out in the electronics manufacturing industry; the core competitiveness of Chinese PCB manufacturers will also be greatly improved.

Solid downstream industry demand for PCBs in China

Excellent development momentum of the downstream electronic information industry is the basic element of the growth of the PCB industry. In recent years, mobile smart terminals represented by smart phones have promoted the continuous development of China's PCB market due to the continuous progress of smart terminals, consumer electronics, energy conservation and environmental protection, Internet of Things (IoT) and information security. . In addition, with the transformation of automobiles from traditional mechanical products to intelligent, informatized and mechatronics high-tech products, electronic technology has been widely used in automobiles, whether it is power control system, automobile body electronic system, safety control system or entertainment system .

It is estimated that by 2019, the global automotive electronics market will reach US$246 billion, with a compound growth rate of 5% from 2014 to 2019. All in all, the booming development of the automotive industry will definitely lead to the take-off of automotive PCBs.

China's PCBs from low-end to high-end

The past few days have witnessed the rapid development of China's PCBs on medium and low PCB boards due to low cost and high return on investment (ROI). According to the market statistics summarized by the industrial sector, the following table shows the market share of various types of PCB in China.

China PCB from low-end to high-end

With the continuous improvement and gradual optimization of China’s PCB manufacturing technology, the market share of traditional single/double-sided PCBs and multilayer PCBs has gradually declined, while the market share of high-tech and high value-added PCB boards has gradually decreased and the value has continued to rise. Such as HDI PCB, package substrate and flexible PCB.

China PCB actively embraces newly developed applications

The National Development and Reform Commission of China has released a list of new strategically newly developed industrial core products and service directions, which contains a large number of new projects, including AI (artificial intelligence), digital creation, etc. as many as 900.

So far, automotive motors are moving towards the direction of intelligence, which is expected to become a new type of smart terminal that replaces smart phones. With the gradual increase in the market share of electric vehicles, intelligence and new energy will lead the electronic components of electric vehicles to rockets. Therefore, automotive electronics will become the main market for PCBs in China.

According to the statistical report issued by the Ministry of Industry and Information Technology of China, China's PCBs achieved a stable and high development momentum in 2017. In the first quarter of 2017 alone, the output of smartphones reached 3.5866 million, a growth rate of 11.4%, and that of notebook computers reached 39.03 million, a growth rate of 10%. The above fields are the main customers of Chinese PCBs. In addition to those major industries that call for China's PCBs, other industries or fields also need China's PCBs, including wearable devices, portable medical devices and health devices that share a large amount of market content, and rapid product upgrades.

Chinese PCBs move towards the global PCB industry

According to the PMI (Purchasing Management Index) issued by the National Bureau of Statistics of China, the purchasing managers' index in June 2017 was 51.7%, an increase of 0.5% compared with the previous month, and the pace of expansion accelerated. According to the group index, among the five group indexes participating in the PMI, the manufacturing index and the new order index are above the threshold, indicating that the continuous growth of China's manufacturing industry has remained stable and market demand has increased.

In terms of human resources serving China's PCB industry, China has accumulated and cultivated a large number of professional human resources for PCB manufacturing, and it continues to grow every year. In addition, the talent team is undergoing training and expansion, with a large number of reasonable structures and excellent talents in order to provide sufficient human resources for China's advanced PCB manufacturing and assembly.