First, the PCB boom up, good lead
In 2016, the output value of global PCB (printed circuit board) fell 2.02% to 54.2 billion U.S. dollars, among which the output value of communications, 3C and vehicles accounted for 27.3%, 13.55% and 9.09% respectively. Benefit from the smart machine innovation cycle started by the iPhone X, Tesla boost the rapid growth of automotive electronics, rising costs and environmental constraints due to supply-side outdated capacity to clear out, from February to October 17 period, The PCB BB value in North America was greater than 1 for 9 consecutive months. From January to September in 17th, the average PCB price in Japan increased 10.58%. This shows that the business climate continues to rise, Prismark is expected in 17 global PCB output is expected to grow more than 2%. In this macro-environment, we expect that the shift of industrial centers and innovation in downstream applications will push the scale of the local PCB industry to a higher level and further increase the concentration of manufacturers.
Second, the mainland single-panel replacement of a vast space
According to WECC data, the output value of single-and double-sided panels in mainland China for 16 years accounted for 36.51% of the world’s total, while multilayer boards and HDI accounted for more than 60% of the world total. This phenomenon is mainly caused by the stock capacity of Japan, South Korea and Taiwan. Considering the maturity of single and double panel industry and referring to the development history of LCD and LED in the past two years, we think local PCB enterprises are expected to directly benefit from single and double panel industry Center to the mainland transfer. In order to achieve rapid expansion, grab share, more and more PCB industry chain companies choose to capitalize on the power, only 17 new PCB-related companies in 2007 there will be seven, according to Shennan Circuit prospectus data, 16 years have been listed The top ten PCB manufacturers in seven have a clear large-scale expansion plans.
Third, environmental restrictions have caused industry concentration increased
January 1, 18 “People’s Republic of China Environmental Protection Tax Law,” the formal implementation of the recent Kunshan, Zhuhai has issued a limited production notice because of environmental issues, involving a number of PCB industry chain manufacturers, a series of changes in the full release of environmental regulation Continued tightening of the signal. In the previous environmental protection under the influence of 17 years in August PCB raw materials inks, solvents, etc. have occurred in a large area, a substantial concentration of price adjustment. We believe that the shortage of raw materials prices make small and medium PCB companies in the financial chain and the stability of the supply chain are facing challenges at the same time, tighter environmental regulatory will make some small and medium-sized PCB enterprises in production technology and environmental protection facilities on the input Lack of disclosure, so that the cost of production to enhance, or even directly facing the risk of closing the factory, so the concentration of PCB manufacturers is expected to further enhance the significant benefit manufacturers.
Fourth, frequent innovation catalyst
Communication is the largest downstream application of PCB. In 16 years, single- and double-sided boards and multilayer boards together accounted for 84.5% of communications PCBs. The upcoming 5G construction is expected to open a new round of high-speed and high-speed development of high-speed and high-speed CCL communications. PCB is widely used in automobiles. In the fourth quarter of 2016, single- and double-sided PCBs and multilayer boards accounted for about 73% of the total PCB market. We expect that the automotive electronics market in 2020 will add about US $ 950 million to the global demand for automotive PCBs , New energy vehicles VCU, MCU, BMS will add about 430 million US dollars domestic car PCB demand. In addition, Apple’s 17-year new model comes standard with FPC wireless charging, iPhoneX with COF full screen and further enhance the integration through the SLP, making the iPhone stand-alone FPC consumption increased again, therefore, FPC industry will be followed in the domestic mobile phone welcome us New opportunities
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