China PCB Industry Output Value and Related Policies

1. our countryPCB Industry Overview
 

PCB, also known as printed circuit board or printed circuit board, is an important electronic component, is the support of electronic components, is the carrier of electrical connection of electronic components.
FromFrom the perspective of the PCB industry chain, the upstream mainly includes the production of raw materials such as epoxy resin, etching solution, and prepreg; with the continuous expansion of printed circuit board application scenarios, downstream application products continue to innovate and are widely used in automotive electronics, aerospace, Medical equipment, computers and peripherals and many other subdivisions of electronic information manufacturing.

Source: Public Information
Global 2.Analysis of PCB Industry Operation Status

AccordingPrismark data show that the global PCB industry output value from 2015 to 2019 showed a downward and then upward trend, with global PCB output value of $61.3 billion in 2019, down 1.76 percent from $62.4 billion in 2018.

Source:Prismark, collated by Huajing Industry Research Institute
In 2019, the total output value of China's PCB industry accounted for about 53.7 percent of the global market, the most widely distributed in the world, followed by Asia, excluding Japan and China, accounting for 30.2 percent. In addition, Japan, Europe, the Americas are below 10%.

Source:Prismark, collated by Huajing Industry Research Institute

3. ChinaAnalysis of PCB Industry Operation Status
From 2012 to 2018, the output value of the PCB industry in mainland China increased from US $22.02 billion to US $32.7 billion, showing a steady growth trend.

Source: Public Information

The phone isPCB is the most important application of the sea, in the PCB downstream application market, communications electronics accounted for 35% of the market share. Followed by automotive electronics and consumer electronics, accounting for 16% and 15% respectively.

Source: Public Information

4.Policy Analysis of PCB Industry

The Chinese government has also issued a series of industrial policies to support and encourage the development of the printed circuit board industry, promote the industrial upgrading and strategic adjustment of the industry, and guideThe PCB industry has entered a healthy development track. In 2013, the National Development and Reform Commission issued the "Industrial Structure Adjustment Guidance Catalogue (2011 Edition)" (revised in 2013), listing high-density printed circuit boards and flexible circuit boards as encouraged categories; in January 2019, the Ministry of Industry and Information Technology issued the "Printed Circuit Board Industry Standard Conditions" and "Interim Measures for the Administration of Printed Circuit Board Industry Standard Announcements" to promote the optimization of the layout of the printed circuit board industry and encourage the construction of a group of PCB enterprises with international influence, leading technology.

5.Development Trend Forecast of PCB Industry
1. Increased industry concentration
The industry pattern began to divide, shuffling accelerated, high-quality enterprises will further seize the market share of small and medium-sized enterprises, promote the concentration. The overall process demand for electronic products has increased, small factories have limited funds, and it is difficult to improve process technology. Differences in scale and profitability have led to a widening technology gap between small factories and large factories. Large factories are actively expanding production, with significant operating advantages under the trend of automation. The advantages of yield, gross profit margin and supply chain cost control continue to expand. Strong bargaining power may continue to squeeze the profit space of small factories. Under the atmosphere of environmental protection verification, the expansion of small factories is more limited, environmental protection equipment supporting investment is high, small factory capital is limited, many small manufacturers are difficult to maintain production under high environmental protection requirements.
2. Gradual construction of industrial barriers
The PCB industry has long been a relatively "low-end" misunderstanding, and valuations are relatively low. In fact, almost all electronic devices use PCB, which has high irreplaceability and stability. PCB industry barriers have gradually begun to build. Along with the downstream applications of the electronics industry to enhance the demand for technology, technical barriers are becoming more and more obvious, downstream electronic applications industry concentration to enhance customer barriers, environmental protection production restrictions and high cost of automation equipment, the advantages of the latter, making PCB enterprises resources and financial barriers more important.

Source: China Economic Intelligence Network