Market Analysis of China's Printed Circuit Board Products and Manufacturing Equipment
Shanghai, November 23, 2009 – According to research by Frost & Sullivan, a world-renowned growth consulting firm, total sales of printed circuit board products in China reached 118.77 billion in 2008, of which 2.5% for single panels and 6.9% for double panels. Multilayer boards accounted for 73.8% and flexible boards accounted for 16.8%. The global financial crisis that erupted in the fourth quarter of 2008 had a sharp impact on China's printed circuit board industry. However, thanks to the high growth in the first three quarters, the industry's sales still rose by 2.2%, but the total profit and tax has fallen. In response to the serious negative impact of the international financial crisis, the Chinese government has formulated an electronic information industry revitalization plan, which has curbed the decline of the industry to a certain extent. Frost & Sullivan expects that the market demand for printed circuit board products in China will reach 97.21 billion yuan in 2009, down 18.2% year-on-year; starting from 2010, with the emergence of various policy effects and the recovery of consumer confidence, the market will re-grow.
Figure 1 2007-2012 China's printed circuit board product market size and forecast
Source: Frost & Sullivan October 2009
The demand for electronic information products directly determines the development of the printed circuit board industry. The following hot spots appear in the current market:
First, the promotion of the third generation of mobile communication technology. With the continuous promotion of 3G technology, the smart phone as its application terminal will inevitably usher in a huge market demand; at the same time, the low-cost netbook has also sprung up, making the rapid penetration of notebook computer products into the low-end and mid-end application market. become possible. However, the release of the potential of smartphones and netbooks is mainly determined by the speed of 3G promotion, or the downward adjustment of 3G tariffs. On the one hand, operators want to gain the first-mover advantage of the 3G market, and on the other hand, they do not want to rashly abandon the existing 2G market. The conflicting psychology makes the end point of 3G's "old-life period" unclear. Among the three operators, China Unicom has less concern and is most likely to be the detonator of the sharp price cut.
Second, the promotion of home appliances based on digital TV. Under the government-led promotion, the progress of upgrading technology equipment is the main determinant of whether it can be promoted faster.
Third, home appliances go to the countryside. The original intention of the government initiative was to promote domestic demand while improving the living standards of farmers. However, due to the rigid policy implementation and deviations in implementation, coupled with the impact of the cottage products, the expected results have not yet been achieved.
Fourth, the development of automotive electronics. In this economic crisis, China's auto industry is unique in the world. In the case of the tragic operation of the European and American auto market, it continues to grow and accelerates its expansion overseas, which in turn drives the development of the automotive electronics industry.
Despite the favorable news of the above market hotspots, the printed circuit board manufacturers in the crisis still have a cautious attitude towards the market. They have reduced the production equipment procurement budget and delayed the construction of new production lines, which led to the shrinking of the corresponding manufacturing equipment market. Frost & Sullivan expects total demand for printed circuit board manufacturing equipment in China to reach 19.43 billion yuan in 2009, down 17.8% from the same period in 2008. From 2010 onwards, the overall market will be warming up and it is expected to return to the same level in 2008 within two years.
Figure 2 2007-2012 China's printed circuit board production equipment market size and forecast
Source: Frost & Sullivan October 2009
The manufacturing process of printed circuit board products varies from product to product and can be roughly divided into six phases: board, assembly, drilling, cutting, printing and inspection. The imported manufacturing equipment market provided by foreign suppliers occupies most of the market, and its price is often 2-5 times that of domestic equipment, and some even reach 10 times. The equipment with higher degree of localization mainly concentrates on the etching machine, the laminating machine and the exposure machine in the plate making process, the screen printing machine in the printing process, and the electric testing machine in the testing section.
In 2008, the printed circuit board manufacturing equipment provided by factories in mainland China achieved a total sales of RMB 8 billion, of which 92.5% of the sales were provided by local manufacturers. There are many equipments involved in the production process of printed circuit boards, and the market is relatively scattered. The four manufacturers of Dazu Laser, Kejie, Boco and Zhisheng only occupy 8.5% of the market share of China's printed circuit board manufacturing equipment supply market.
Process section representative equipment main supplier
Board engraving machine Chinese Merck
Board, photoplotter, Orbo, Mania, Oriental Yuzhiguang, founded
Board, developing machine, Lida, Yazhi
Board, etching machine, universe, Yazhi
Board, laminating machine, Zhisheng, group
Board, exposure machine, Zhisheng, group, Daxiang, Wei innovation
Assembly Vacuum Laminator Boco, Live All, Jiayu, Hengda, Widy
Drilling Laser Drilling Machine Mitsubishi, Hitachi, Sumitomo, Dazu Laser, Meikai
Drilling Machine Drilling Machine Mania, Dazu Laser, Dongtai Seiki, Kejie, Yuzeke, a large number of CNC
Cutting laser cutting machine Dazu laser, big win CNC
Printing Screen Printing Machine Taisho, Da Zhen, Daxiang
Detection ICT Agilent, Germany
Detection AOI Orbo, Delu, Kangdai, Hengda Youwei
Detection AXI Agilent, Terad, Microvision, German
Testing, electric testing machine, Dazu Mingxin, Tairuide
Detection Flying Needle Tester Mania, Oriental Yuzhiguang, Tyrrell, Deying