China's printed circuit board companies are gradually becoming stronger
China's printed circuit board companies are gradually becoming stronger. Date:2016.10.12
The PCB industry in China has been steadily developing and has become increasingly important in the global PCB industry. In 2014, the proportion of China's PCB output in the world increased from 43.8% in the previous year (2013) to 45.5%. China's PCB output value reached 26.13 billion US dollars, or about 165 billion yuan, an increase of 6.3% year-on-year. In mainland China, the growth rate of local PCBs was strong, reaching 11.4%.
In the past two years, affected by the global economic changes, the annual growth rate of the global printed circuit board in 2013 was “essentially flat” (CPCA), “very slow growth” and “only 0.9% increase” (Prismark). In 2014, global PCB "has continued to grow, it is not easy" and "2.3% year-on-year increase" (Prismark).
However, the PCB industry in China has been steadily developing and has become increasingly important in the global PCB industry. In 2014, the proportion of PCB output in China accounted for 45.5% from 43.8% in the previous year (2013). China's PCB output value reached 26.13 billion US dollars (domestic and foreign), and about 165 billion yuan, a year-on-year increase of 6.3%. The domestic PCB growth rate in Mainland China was strong, reaching 11.4% (prismark data for March 2015).
In this environment, perusing the latest published 14th China Printed Circuit Industry rankings, the biggest impression is: China's PCB companies have become larger and are gradually becoming stronger. How can it be seen? And listen to the following analysis:
First, Chinese companies entered the world's top 30 for the first time
In recent years, Chinese PCB companies have entered the top 100 in the world. According to the 2013 data released by N.T.information in September 2014, 27 PCB enterprises in China have entered the world’s 100 million dollar annual club (23 in Mainland China and 4 in Hong Kong SAR), which is very impressive. But look closely, the vast majority of companies ranked between 50 and 98, and 4 companies ranked between 38 and 48. To enter the top 30, the annual output value must reach approximately 600 million U.S. dollars.
In 2014, China’s PCB company Shennan Circuit entered the world’s top 30 for the first time, and its output value reached 3.642 billion yuan, an increase of 39.2% year-on-year. The company's product scale, product quality, technical level, management level, and customer base are obvious to all in the world.
The situation that China's PCB backbone enterprises with international competitiveness have been zero has ended.
Second, the backbone enterprises with international effectiveness will increase year by year
Last year, the global PCB growth was modest, but a number of PCB companies in China have developed rapidly and steadily. Last year, Zhuhai Founder's operating income was 2.604 billion yuan, an increase of 11.3% over the same period of last year. Aoscon Precision Circuit increased 77.6% year-on-year in 2014, operating revenue reached 2.30 billion yuan; Jingwang Electronics increased 29.1% year-on-year to 2.237 billion yuan; Shantou ultrasound increased year-on-year 11.9% to 1.952 billion yuan; five strains of technology increased by 11.0% year-on-year, and revenue reached 2.033 billion yuan.
In recent years, the global economic development has been sluggish. In addition to the enterprises mentioned above, there are also a number of well-known and distinguished star enterprises, which have developed at a rapid rate. For example, Xingsen Express increased 34.2% last year to 1.678 billion yuan; Shenzhen Chongda increased 27.7% to 1.25 billion yuan; Chaohua increased 29.1%, revenue was 1.201 billion yuan; animal husbandry Taylor increased 44.0%, revenue was 216 million yuan. Yuan; Shenzhen Songwei increased 44.2%, revenue was 620 million yuan; Shangda Electronics increased 52.6%, 380 million yuan; Jinbaize increased 31.0%, revenue reached 533 million yuan; Jiangmen Benida increased 60.9%, reaching 238 million yuan. A large number of companies with a growth rate of 10% to 60% will be rushed to achieve a target of 3 billion yuan in output value in 1 to 3 years.
What is even more gratifying is that the number of listed companies in the PCB industry in China has increased, and the listed companies (including the Huizhou Shenghong shares approved in May 2015) have reached 20. Judging from the results of the 2014 announcement, there are 18 operating incomes that are positive, and seven companies have increased by more than 25%. There are many PCB companies with good prospects for the development of listed companies that have been linked to the Beijing Securities Regulatory Commission, such as Jingwang, Chongda, Bomin, and Guangdong Shiyun, as well as Guangxin and Rongda. These companies have their own characteristics, have distinct competitive advantages, world-class customer base, with a financing platform, China's PCB backbone enterprises with international competitiveness will increase year by year, China's PCB becomes bigger and stronger and full of hope.
Third, FPC companies continue to grow stronger and stronger
In 2014, the global FPC (flexible circuit board) did not have the expected high growth, which was an increase of 1.7% compared with the previous year. The main reason was that South Korea’s FPC was dragged down by Samsung and it was negative growth (-15.6%) in 2014. However, the mainland of China and Taiwan are an exception. In 2014, the increase in FPC in Taiwan was 15.8%, while the mainland’s growth rate was 7.4%, which is still a highlight of the industry. Smart phones, tablets, smart wearable devices, communications and automotive electronics are the most widely used areas of FPC. Although the development of smart terminals has been flattened, the prospects for development are still promising.
Analysing this session's rankings, many domestic FPC companies in mainland China are moving forward in an extraordinary way. Outstanding companies include: Danbang’s growth rate was 74.9% year-on-year, revenue reached RMB 502 million, Jingcheng’s increase was 26.5%, revenue reached RMB 578 million, Xiamen Hongxin’s growth rate was 10.9%, and the camp received RMB 744 million; Jingwang’s FPC has experienced rapid growth in the past two years. FPC Business Unit has achieved revenue of RMB 600 million; Shenzhen Xinyu Tengyue (formerly: Zhongxing Xinyu) has increased by 12.6% to reach RMB 574 million; Anjieli has slightly declined year-on-year, with revenue of RMB 622 million.
Although China's FPC has made great progress, we still have a far cry from world-class FPC companies. FPC companies in mainland China account for a very small share of FPC in the world, less than 10%. Mainland Chinese FPC companies have many stars and fewer moons. Huawei's FPC supply chain of Chinese mobile phone brands, the main supply is not the domestic FPC companies, but Japan, the United States and Taiwan. In the list of Apple's FPC procurement suppliers, no mainland Chinese companies were seen. FPC backbone enterprises with international competitiveness have not yet emerged. Domestic FPC companies have a long way to go. People are talking about: Who is the second apple? In March 2015, 360 Network President Zhou Honghai said at the Boao Forum for Asia that "in fact, those foreign mobile phone companies other than Apple will die in the hands of Chinese mobile phone manufacturing companies. I absolutely believe." If this is the case, the market prospect of FPC is undoubtedly good, and Chinese domestic FPC companies will be able to become bigger and stronger.
Fourth, PCB equipment materials companies in the world
Production of PCB main material copper clad laminate company Guangdong Shengyi Technology, in the global economic downturn environment, operating income in 2014 was 7.418 billion yuan, an increase of 12.9% compared to the previous year's 6.57 billion yuan, continue to sit firmly in the global copper clad laminate industry Second place. Shengyi Technology has established a national-level CCL technical engineering center. In recent years, it has formulated two international CCL technology standards, applied for numerous invention-based patents, and published numerous scientific and technological papers. Its large number of copper clad laminate products has entered the top international PCB companies at home and abroad. The biotechnology people represented by Liu Shufeng's general manager have set a good example for our PCB companies to become bigger and stronger.
For more than 20 years, Foshan Cheng'an Copper, which has been focusing on PCB phosphoric copper anodes, continued to make great strides in 2014. In 2014, its operating income reached 2.51 billion yuan, an increase of 13.6% compared with 2.21 billion yuan in 2013 of the previous year. The company’s product is the “Weston WESTERN” brand and won the “China Famous Brand” title last year. Chengan phosphor bronze anode products are sold well both at home and abroad, and its sales volume has leapt to the top in the world. The company is also the country's and industry's anodic phosphor copper technical standard developer and revisioner. The company's fourth-generation phosphorus copper anode - low-phosphor micro-crystalline phosphorus copper anode, its phosphorus content from 0.04% to 0.065% significantly reduced to 0.025%, the use of better, more environmentally friendly, higher use of copper ball, The product has been well received by many well-known PCB companies at home and abroad, and the products are in short supply. This is another example of the specialization and strengthening of China's PCB special materials.
China's PCB bit/milling cutter industry standard maker Shenzhen Jinzhou Seiko is another example of China's PCB companies becoming bigger and stronger. In 2014, its operating income continued to grow at a double-digit rate, reaching 607 million yuan, a year-on-year increase of 21.2%. Jinzhou drill has reached the world, and its scale and level have entered the forefront of peers in the world segment.
The author believes that the strength of the company does not fully consider the scale. In the subdivision of the same industry, it has unique features and is different from the others. The dominant enterprises are also the best in the industry and are equally powerful. For example, the company's Shengyi Technology, Chengan, and Jinzhou are examples. China's PCB companies have gradually become powerful companies. For instance, Shenzhen Liu Xin, who specializes in technology innovation and focuses on PCB cover plates in China, has developed MVC cover plates for use with China's high-end PCBs. In the past two years, he has rapidly entered the top 100 PCB companies and top 100 PCB companies in China. Leading the industry in the development of the industry standard for cover plate for drilling holes in printed boards, its popularity has greatly increased. In 2014, its operating income reached a new level, reaching 387 million yuan, a year-on-year increase of 19.0%.
In recent years, large and high-end PCB manufacturers have purchased a "PCB vertical continuous plating line (VCP)." This equipment automatically upper and lower plates, continuous plating, high efficiency. The important innovation is that the electroplating layer has good uniformity, and the deviation can be 5% (10~20% for the traditional vertical electroplating line), which is very useful for making thin high-density small-hole printed boards. This kind of current world's most cutting-edge PCB electroplating equipment needs more than 10 million yuan per article. Now that the domestically produced VCP has come out, the effect is very good. There are numerous inventions for utility models and appearance patents, and the domestic ones can cost a few million yuan per article. Domestically produced VCP lines have two distinctive companies, one is the Dongguan universe. In 2014, its operating income was 650 million yuan, a year-on-year increase of 25.0%. The other company is private enterprise Kunshan Shandong Weiwei Plating Equipment Technology Co., Ltd. In 2014, its operating income was 122 million yuan, and its products have entered the top suppliers of PCB/FPC for Foxconn, Golden Image, Jialianyi, and Taichung, etc. for Apple mobile phones/smart wearable devices. The future is immeasurable. China's PCB equipment materials have become larger and stronger, and there are many examples of products reaching the world. Shenzhen Han's Laser, Guangdong Zhengye Technology, Guangdong Guanghua, Wuxi Guangxin, Shenzhen Hongda, Zhengtianwei, Baikal, Stan...
I read the 2014 industry rankings indeed feel that China's PCB companies are becoming stronger, FPC companies are also becoming stronger, and FPC equipment and materials companies are becoming stronger. Some PCB products in China are now on the road to power.
August 25-27, Reed Exhibitions and Shenzhen Circuit Board Industry Association (SPCA), Taiwan Circuit Board Association (TPCA) and China Council for the Promotion of International Trade (CCPIT) will be The Shenzhen International Convention and Exhibition Center (Shenzhen International Circuit Sourcing Show 2015, CS Show) was grandly opened at Hall 6 of the Shenzhen Convention and Exhibition Center. This exhibition conforms to the rapid development of the domestic electronics industry, provides a good market environment for the circuit board industry, and is committed to providing cutting-edge technical support for the electronic communications, consumer electronics, and household appliances industries, especially for smart electronics, automotive electronics, The rapid rise of emerging industries such as printed electronics and semiconductors has provided strong impetus. It can be said that the CS Show 2015 circuit board procurement meeting with the theme of “innovation-driven” is not only an excellent display platform for PCB/FPC/HDI circuit board companies, but also will become a communication and cooperation initiative for upstream and downstream procurement. The best intermediary for the sound development of the PCB industry across the Taiwan Strait and throughout East Asia.