PCB Tech - How to develop PCB downstream manufacturers

Whether it is a PCB company or a downstream manufacturer, they are all facing a common situation-the price of raw materials has risen before, and there will be tens of billions of new market demand afterwards. The company needs to think about the long-term development of the company in all aspects. To smash the price of products, it is necessary to make efforts from various aspects such as its own technology, products, brands and channels to enhance the competitiveness of enterprises and obtain higher profit margins. Competition in the electronics manufacturing market is still fierce. Some companies with foresight and strong competitiveness have begun to break away from the "price war" and begin to shift their battlefields to the high-end display field.

From the perspective of the overall environment of the electronics industry, as China gradually enters the 5G era, consumer electronics is facing a new round of development. The demand for high-frequency and high-speed copper clad laminates will show exponential growth. At the same time, the reshuffle of small and medium PCB companies will lead to overall production capacity. Compression, major manufacturers generally bet their future production capacity in the communications, lithium battery and automotive blue ocean markets, which will have a great impact on PCB downstream companies.

The substantial increase in the price of upstream PCBs will surely catch downstream applications by surprise. As far as the current stage is concerned, the market prosperity in many downstream areas of PCB continues to rise, and the steady stream of market orders not only brings profits to manufacturers, but also puts forward higher market demand for PCB. The increase in PCB prices and the intensification of industry concentration have not only brought cost pressures to downstream companies, but also broke the original balance of supply and demand, causing the market to fall into a dilemma of short supply.

What's more worth mentioning is that due to the tight delivery time and shortage of current raw materials such as copper foil and glass cloth of the most upstream PCB board, it naturally directly affects the delivery time of PCB suppliers. Compared with the price increase of raw materials, The tight delivery time makes upstream and downstream manufacturers helpless. This storm of raw material price hikes has begun to gradually retreat those downstream companies that do not have the strength to compete in terms of economy and scale, further accelerating the speed of industry reshuffle.

With the continuous improvement of technology, PCB, known as the "mother of electronic products", has become a global industry with an annual output value of more than 50 billion US dollars. The importance of PCB to electronic products is self-evident, but the serious environmental pollution caused by it in the production process cannot be ignored. Especially at the moment when ecological environmental problems are prominent, green environmental protection has been highly valued by the government. Strict production environmental protection standards. In order to respond to the government's call and realize the sustainable development of the industry, major PCB manufacturers have carried out industrial adjustments and improved product manufacturing processes. This not only directly increases the price of product accessories and labor costs, but also leads to an increase in industry concentration.