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Problems and development prospects of China’s PCB industry in 2020

China Commercial Industry Research Institute predicts that my country’s PCB output value will reach 34 billion U.S. dollars in 2020.

In recent years, the manufacturing industry, led by the electronic information industry, has shifted to the Asia-Pacific region. The global PCB manufacturing center has increased in the Asia-Pacific region. China’s PCB output value has increased significantly, and China’s PCB industry status has continued to strengthen. Data show that my country’s PCB output value reached 32.9 billion U.S. dollars in 2019. China Commercial Industry Research Institute predicts that my country’s PCB output value will reach 34 billion U.S. dollars in 2020.

Printed Circuit Board

PCB Industry Development Dilemma

1. There is a gap between the technological level and the world’s leading companies

From the perspective of the industrial scale, China has become a big PCB manufacturing country. However, from the standpoint of product technology, traditional single-layer/double-layer PCB boards and multi-layer circuit boards are still relatively high. High-tech, high-value-added HDI PCB, flexible PCB, IC substrates, and other products continue to increase; but, the scale is still small. Compared with developed countries, product manufacturing technologies and processes still need to be further improved.

2. Rising labor and Environmental protection costs have led to rising operating costs

With the rapid development of my country’s economy and the gradual disappearance of the demographic dividend, my country’s labor costs also show a fast upward trend. My country’s environmental protection policies are becoming more and more stringent, and the country’s environmental protection requirements for industrial enterprises are continually increasing. PCB companies need to invest more workforce, material, and financial resources in environmental protection, which leads to an increase in business costs.

Workers are working on PCB assembly

Development prospects of PCB industry

1. National industrial policy support

The electronic information industry is a strategic, fundamental, and leading pillar industry for China’s critical development. It is the technical support and material basis for accelerating industrial transformation and upgrading and constructing national economic and social informatization. It is an essential cornerstone for national defense construction and federal information security. In recent years, the relevant state departments have formulated a series of policies and regulations to encourage and promote the development of the PCB industry, providing a stable system guarantee for the development of PCB companies.

2. The upgrading of the electronic information industry and the rise of independent brands drive the high-quality development of the industry

At present, the scale of my country’s electronic information manufacturing industry ranks first in the world, and an industrial system with a complete range of categories, an entire industrial chain, a solid foundation, optimized structure, and continuous improvement in innovation capabilities has been initially established. With the constant growth of the overall scale of the electronic information manufacturing industry and the rise of independent brand products in the downstream electronics industry, the import substitution demand for high-value-added products such as high-layer boards, HDI boards, and flexible circuit boards will increase. Domestic PCB companies will have more The local PCB industry will further develop with high quality.

PCB drilling workshop

3. Downstream electronic information products are changing with each passing day, continually bringing new opportunities

5G communications, automotive electronics, and consumer electronics will become the main areas driving the steady growth of the PCB industry. The emergence of emerging products in these segments will bring new opportunities for the development of the PCB industry. At the same time, electronic information product manufacturers continue to develop new materials, new technologies, and research and create new products to meet the needs of their downstream products for multi-function, miniaturization, and portability and continue to bring massive demand for PCB products.

PCB Assembly workshop

4. The irreplaceability of PCB in the electronic information industry chain is the solid foundation of the PCB industry

PCB is a necessary, indispensable component of electronic information products. It is widely used in the downstream electronic information manufacturing industry. It is used as a framework for supporting pillars and a pipeline to connect electricity. There is no mature technology and product that can provide the same or similar functions. This is the foundation for the steady development of the PCB industry.

JHYPCB is a professional PCB manufacturer and assembler in China; we are dedicated to being your best partner of advanced, high-precision printed circuit boards, such as thick copper PCB, high TG, FPC, rigid-flex, HDI, BGA, high-frequency (Rogers, Taconic), impedance controlled PCB boards, Metal Core PCB (MCPCB) such as Aluminum PCB, LED PCB, and so on.

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JHYPCB is a leading PCB prototyping, PCB manufacturing and assembly service provider in China, offering quick turn PCB prototyping, multi-layer PCB manufacturing and turnkey PCB assembly services.

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