PCB industry growth is expected to remain stable

_ December 27, 2022_ IBE_ 0 Comments

A printed circuit board (referred to as “PCB”) refers to a circuit board that forms a copper circuit pattern on a copper-clad laminate according to a predetermined design. Its main function is to connect various electronic components based on a predetermined circuit.

Brief introduction of PCB

PCBs are key interconnects for assembling electronic components. They not only provide electrical connections for electronic components, but also carry functions such as digital and analog signal transmission, power supply, and radio frequency microwave signal transmission and reception of electronic equipment.

PCB is a bridge that carries electronic components and connects circuits, which is widely used in communication electronics, consumer electronics, computers, automotive electronics, industrial control, medical equipment, national defense and aerospace and other fields. It is an indispensable electronic component in modern electronic information products.

Policy environment analysis

To a certain extent, the development level of PCB industry can reflect the technical level of a country or region’s electronic information industry. China has issued a series of policies to strongly support the PCB industry. Policy plans have been continuously released, providing a good policy environment for the sustainable development of the industry.

A series of policies such as “Made in China 2025”, “The 13th Five-Year Plan” National Strategic Emerging Industry Development Plan, and “Basic Electronic Components Industry Development Action Plan (2021-2023)” have clearly defined the strengthening of industrial basic capabilities and addressing the key technologies of core basic parts (components) to promote the high-quality development of the industry.

Economic circumstance analysis

According to some statistics, affected by various factors such as commodity price increases, dollar depreciation, and terminal demand increases, the global PCB industry output value denominated in US dollars has increased by 23.4% year-on-year in 2021 (the output value in RMB has increased by 15.6% year-on-year.

In the long term, the industry is expected to maintain a steady growth trend. From 2021 to 2026, the global PCB output value is expected to grow at a compound annual growth rate of 4.8%. From a regional perspective, the PCB industry in all regions of the world has shown a continuous growth trend. Among them, the compound growth rate of the PCB industry in mainland of China reaches 4.6% and shows stable growth.

With the continuous upgrading and application expansion of 5G communication, artificial intelligence, cloud computing, smart wearables, smart home and other technologies, the global demand for chips and chip packaging has increased significantly. Packaging substrate, as an important material for chip packaging, has also entered a period of rapid development with the continuous increase in demand in various downstream application fields, and the market prospect is promising.

In recent years, the market size of the global semiconductor industry has shown an overall growth trend. According to the statistics from WSTS, the sales of the global semiconductor industry increased from 412.2 billion USD in 2017 to 555.9 billion USD in 2021, with an average annual compound growth rate of 7.8%. It is estimated that the market size of the global semiconductor industry can reach 605.6 billion USD in 2022.

Technology patent analysis

PCBs are knowledge-intensive and technology-intensive industries. During the period from 2013 to 2021, the overall number of patent applications for PCBs in China is on the rise. In 2021, the number of patent applications for PCBs in China is 1,483. Since 2022, the number of patent applications for PCBs has increased 770 items.

However, high-end products in the PCB industry, such as packaging substrates, are still monopolized by Taiwan of China, South Korea, and Japan. Thus, China needs to improve the continuously research and development efforts to accelerate production of high-end alternatives.

China PCB industry analysis

It’s reported that the global PCB market size has grown from 58.843 billion USD in 2017 to 80.449 billion USD in 2021, with a year-on-year growth rate of 23.35% in 2021. It’s predicted that the global PCB market size will exceed US$100 billion in 2026, with a CAGR of 4.77% from 2021 to 2026. Asian countries, including China and Japan, led the way in output growth.

1.The output value of high-end products grows rapidly.

From the perspective of product structure, the global PCB industry is moving closer to high precision, high density and high reliability, optimizing the industrial structure to adapt to the development of downstream communications, servers and data storage, new energy and smart driving, consumer electronics and other fields.

2. High speed, high frequency and high system integration will become the main development direction of future PCB products.

The increasing demand for capacity makes the frequency and speed of communication products higher and higher. Along with the complexity of optoelectronic interconnection is rapidly increasing, the PCB that supports communication technology will also develop in the direction of high speed and large capacity.

Higher requirements are put forward in terms of size and optoelectronic integration. From the current 25Gbps bus speed to a higher 56Gbps, the core equipment high-speed PCB line card board is developing towards 30-40 layers, and the number of backplane layers reaches more than 60 layers. Industry technology will be further differentiated and refined.

3. Demand for high-end PCB and FPC is strong.

In terms of the types of PCB products required for various applications, computers and communication equipment have a higher demand for multi-layer PCB, HDI and FPC. While automotive electronics favor multi-layer PCB. Consumer electronics have higher requirements for composite PCBs, HDI, and FPC.

4. The growth rate of packaging substrates is relatively fast.

As far as the product structure of PCB is concerned, in 2021, multi-layer PCBs occupy the highest proportion compared with other types. The market share of HDI PCB and packaging substrates is gradually increasing. It’s predicted that the market size of packaging substrates and HDI PCBs will reach 21.435 billion USD and 15.012 billion USD in 2026.

Package substrates are the upgrading of PCB. It is the key carrier of the packaging and testing part of the integrated circuit industry chain. It not only provides support, heat dissipation and protection for the chip, but also provides an electronic connection between the chip and the PCB. It also allows embedding passive and active devices to achieve some functions.

In terms of the regional growth rate of substrate-like PCB, the Asia-Pacific region has a high growth rate. Based on the technology of substrate-like PCB, the growth rate of packaging substrates will also be at a relatively high level, and the process of the high-end alternatives will also gradually accelerate.

At present, companies in Japan, South Korea, and Taiwan of China occupy an absolute leading position. According to statistics disclosed, the top ten packaging substrates in the world account for about 83% of the market, and the top three companies are Unimicron (Taiwan, China), Ibiden (Japan), and SEMCO (South Korea) respectively occupy 15%, 11%, and 10% of the market share. There is a huge space for domestic substitution of packaging substrate business in mainland China.

The chip packaging and testing foundry in mainland of China accounts for more than 20% of the world, but the operating income of IC substrates covers less than 4% of the global market. The mismatch of market share between packaging substrates and packaging and testing manufacturers in the mainland of China has further enhanced the internal demand motivation for alternatives.

IBE advantages for PCB manufacturing

IBE, we have over 17 years of experience in PCB and PCBA design and manufacturing services. Not only do we offer high-quality circuit boards, but our team of experts is also fully equipped with the requisite knowledge and industry best practices to assemble various types of PCBs.

Whether your requirement is rigid, flex, or rigid-flex PCB, we have you covered. From single-layer PCBs to multi-layer PCBs, you can count on us for their high quality. We also have a wide range of materials available to match your bespoke needs.

The big advantage that we offer is in terms of our quick turnaround times which ensures that you do not have to wait for days for us to fulfill your requirements.

IBE is certificated with the ISO9001:2015, ISO14001, RoHS, and UL listed, World Class Quality and the Standards–IATF 16949:2016 Certified (for Automotive), ISO 13485:2016(for medical). In addition, we have a strict internal quality control process and test methods, from raw material to PCB assembly, we perform visual inspection and automated inspections such as optical and X-ray inspections, making sure our customers can always get high-quality products.

Irrespective of what your volume requirements are, we have the right solutions. From requirements for printed circuit board prototypes to large production runs, we have you fully covered. All you need to do is to share your exact requirements with our team and we will get back to you with a competitive, custom quote.

Author

IBE

IBE Electronics is a leading EMS provider in China, with rich experience and expertise, providing customers with excellent service and creating superior products to improve people’s lives.