With the Rise of Copper Clad Laminate and Copper Foil, the Performance of PCB Industry Chain is Expected to Grow
As the downstream consumer electronics, 5G base stations, servers, cars and other demand increases, pull the PCB industry chain into the business cycle. A few days ago, a reporter from the Financial Association learned through investigation that due to the short supply of PCB, the upstream production capacity of the industrial chain is limited, and the prices of copper clad laminate, copper foil and other materials continue to rise. Relevant analysis points out that the demand for various products will usher in a concentrated outbreak in 2021, and the performance of PCB industry chain is expected to usher in a big year of growth this year.
Jianding, Taiwan's leading PCB board manufacturer, recently revealed that the lead time of PCB orders is usually two weeks to one month, but now we can see orders in the second quarter in January, so the visibility is very good. Shennan circuit, a mainland manufacturer, did not disclose specific product price information to reporters because it was in the "silent period of annual report". However, the company recently said publicly on the interactive platform that "the raw materials of the company include copper clad laminate, semi cured sheet, copper foil, gold salt, dry film and ink, involving more categories. At present, the price of some raw materials of the company is facing rising. At the same time, Shennan circuit also revealed that its capacity utilization rate has been improved compared with the previous period.
The significant growth of downstream demand for consumer electronics, 5g base stations, automotive electronics, etc. is the key factor driving the PCB industry chain into the price cycle. Chaohua technology pointed out that since the second half of last year, with the outbreak of 5g, new energy vehicles, energy storage and other downstream markets, the whole PCB industry chain has ushered in a rise in both quantity and price. At present, the demand of the downstream market is still very hot, and the whole industry is still in a high level of prosperity.
The reason for the price increase of copper clad plate comes from two aspects: supply and demand. On the one hand, downstream demand is growing rapidly, on the other hand, effective supply - especially high-end products, has little new capacity in the previous years, which does not match the growth of demand.
It is noteworthy that, after several years of layout and storage, especially in the background of COVID-19 suppressing some downstream demand last year, the China PCB manufacturer may usher in a concentrated outbreak this year, which will also become the biggest driving force for the whole industry chain to maintain the current prosperity.
According to the public information disclosed earlier, Shennan circuit Automotive PCB has entered the customer camp of Bosch group, ZF, BYD, Great Wall Motors, etc. Due to the PCB level upgrade drive of communication products, as one of the few local manufacturers that can produce multi-layer PCB, Shennan circuit will also benefit. Shengyi electronics, which has just landed in the capital market, plans to expand its production capacity with Changshu Shengyi as the main body. The new project plans to expand the production capacity of 11.4 million square meters of high-performance copper plate and 36 million meters of bonding sheet. Its product is positioned as high-end products in the HDI field. Chaohua technology also disclosed to the reporter that at present, the company also continues to develop high-end products. The RTF copper foil for 5g communication has achieved mass production, and VLP copper foil has been produced on a small scale. In addition, the first phase of the copper foil industry base with an annual output of 50000 tons of electronic copper foil and 10 million pieces of high-end core board project, which was built in cooperation with the Yulin government, was officially started at the end of February.