In the era of low profit in electronic products, price wars have changed the supply chain. The total output value of China's PCB industry reached 58.84 billion yuan, an increase of 8.6% year-on-year, with an average compound growth rate of 20% in revenue and a compound growth rate of 27% in net profit attributable to the parent company. The following is an analysis of investment in the PCB industry.
Due to the concentration of downstream industries and relatively low labor and land costs, China has become the region with the strongest development momentum. In 2017, China surpassed the United States for the first time and became the world's second largest PCB producer. The proportion of output value also increased from 8.54% in 2000 to 15.30%, nearly doubling.
As of 2018, the newly planned investment in China's PCB industry reached 95.5 billion yuan, with 72 new investment projects, with an average investment of 1.3 billion yuan per project. The newly increased planned investment in the first four quarters was 18.5 billion yuan, 25.4 billion yuan, 41.2 billion yuan and 10.4 billion yuan, accounting for 19.3%, 26.6%, 43.2% and 10.9% respectively. Analysis of the PCB industry indicates that each quarter's newly planned investment amount is over 10 billion yuan, with 41.2 billion yuan in the third quarter being the peak period for new investment projects.
From the distribution of newly planned investment products, there are 63 newly planned investment projects for PCB boards, with a newly planned investment amount of 79.6 billion yuan, accounting for 83.4%. The investment analysis of the PCB industry indicates that there are 6 new planned investment projects for copper clad panels, with a planned investment of 6.8 billion yuan accounting for 7.1%. PCB materials mainly include copper foil, fiberglass cloth, and ink, with 6 new planned investment projects added, with a planned investment amount of 9.1 billion yuan accounting for 9.5%.
From the distribution of revenue areas in the corporate market, only 3 out of the top 10 PCB revenue enterprises in mainland China are domestic enterprises; Among the top 20 companies with revenue, only 6 are domestic enterprises. Among the top 10 and top 20 PCB companies with revenue, the proportion of domestic enterprises is 30%. However, Dongshan Precision and Shennan Circuit have entered the top 5.
At present, there are approximately 1500 PCB enterprises in China, forming a pattern of joint competition among Taiwanese, Hong Kong, American, Japanese, and domestic enterprises. Among them, foreign-funded enterprises generally have a large investment scale, and have certain advantages in production technology and product specialization; There are many domestic enterprises, but there is still a certain gap in their scale and technological level compared to foreign enterprises.
Among them, China's printed circuit industry is mainly distributed in the southeast coastal areas, which is also related to the large demand for water in the PCB industry. These areas are relatively rich in water resources. The Yangtze Delta and the the Pearl River Delta together account for 90% of the total national volume. The PCB industry investment analysis indicates that the ratio of the Yangtze Delta to the Pearl River Delta is about 1:1 at present.
The proportion of hard boards (single panel, double-sided board, multi-layer board, HDI board) in China reaches 83.8%, with multi-layer boards accounting for the largest proportion with a proportion of over 50%, followed by soft boards with a proportion of 15.6%. Due to the pressure of oversupply, most manufacturers have entered a price war, resulting in lower than expected output growth. With the continuous expansion of production capacity in large factories, the HDI board has