Overview of China's PCB Industry Dynamics

China's PCB (Printed Circuit Board) industry encompasses various aspects, including the current state, market size, development trends, competitive landscape, and challenges faced. Here's a comprehensive overview:

I. Industry Status

As a crucial electronic interconnect in electronic products, PCBs are widely used in consumer electronics, computers, communication equipment, automotive electronics, and more, serving as an indispensable foundation for the electronic information industry. Recently, fueled by the surge in AI server demand, the acceleration of automotive electrification and intelligence, and the proliferation of 5G and cloud computing technologies, China's PCB industry has embraced new development opportunities, exhibiting robust growth momentum.

II. Market Size

China's PCB market size continues to expand. According to the China Research and Intelligence Institute's report, "Analysis of PCB Industry Status and Future Development Trends from 2024 to 2029," the market size reached 307.816 billion yuan in 2022, with a year-on-year growth of 2.56%. In 2023, the market size increased to approximately 309.663 billion yuan, and it is projected to further grow to between 330.071 billion and 346.902 billion yuan by 2024. This growth trend is attributed to the global shift of PCB production capacity towards mainland China and the vast downstream electronic terminal market.

III. Development Trends

• Technological Upgradation: As electronic products demand higher PCB density, products are continually upgraded from early single/double-layer boards to multi-layer, HDI, and SLP premium products, enhancing performance and craftsmanship.

• Green Manufacturing: Driven by environmental policies and consumer preferences, eco-friendly PCBs are becoming a market trend. Companies must strengthen environmental management and certifications to meet international and domestic standards.

• Diversified Market Demand: With the diversification and customization of electronic products, PCB market demand is also diversifying. Firms must adapt to these changes by introducing new products and services.

• Smart Manufacturing and Digital Transformation: These are crucial directions for the PCB industry's future development. By adopting smart manufacturing systems and digital transformation technologies, companies can enhance production efficiency, product quality, and competitiveness while reducing costs.

IV. Competitive Landscape

China's PCB market is fiercely competitive and diverse, with both international giants and local enterprises coexisting. Internationally, software companies like Siemens, Altium, and Cadence dominate the market. In China, local firms like Dongshan Precision, Shennan Circuits, and Kingboard Chemical have emerged through technical prowess and strategic positioning. However, the industry remains fragmented with low concentration and no significant head effect.

V. Challenges

• Technological Innovation and Upgradation: As downstream applications evolve, the PCB industry must continually develop new technologies and products to meet market demands.

• Raw Material Price Fluctuations: Volatile prices of raw materials like copper foil and glass fiber cloth significantly impact production costs.

• Environmental Pressures: Stringent environmental regulations and heightened consumer awareness necessitate increased investments and costs for environmental compliance.

• Intensifying Competition: As the industry expands and market demand grows, more enterprises enter the PCB sector, intensifying competition.