PCB sector to continue rapid growth

Citation

(2004), "PCB sector to continue rapid growth", Circuit World, Vol. 30 No. 4. https://doi.org/10.1108/cw.2004.21730dab.017

PCB sector to continue rapid growth

PCB sector to continue rapid growth

Keywords: Printed-circuit boards, China

China's Printed Circuit Board (PCB) industry expanded sharply in 2003 due to the recovery of the world's electronics manufacturing industry and the nation's immense internal demand for PCBs. China's PCB industry achieved 2003 revenue of US$5.7 billion, up 21.3 percent from 2002. This brisk growth represents a comeback from the downturn in the domestic PCB industry in 2001, owing to the worldwide decline in the telecommunications and networking sectors.

China's PCB manufacturing technology is advancing, with multi-layer PCB output now accounting for more than half of the total PCB output. The country now has more than 1,300 PCB-related companies, including 662 PCB manufacturers, 442 raw-material providers and 283 equipment suppliers, according to the China Printed Circuit Association (CPCA).

Leading PCB manufacturers include:

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  AT&S (China) Co. Ltd, of Shanghai China Circuit Technology (Shantou) Corp. (CCTC) of Shantou, Guangdong Province;

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  Dalian Pacific Multi-layer PCB Co. Ltd of Dalian, Liaoning Province;

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  Shennan Circuits Co. Ltd of Shenzhen, Guangdong Province;

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  ACP Electronics Co. Ltd of Suzhou, Jiangsu Province;

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  Topsearch Printed Circuits (Shenzhen) Ltd of Shenzhen, Guangdong Province;

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  Unicap Electronics Industrial (China) Co. Ltd of Kunshan, Jiangsu Province; and

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  Multek China Co. Ltd of Zhuhai, Guangdong Province.

CCTC specialises in PCB manufacturing, and offers PCBs ranging from 2 to 28 layers, as well as high-density interconnect (HDI) products. The company focuses on communication and PC applications. CCTC sells 40 percent of its products at home and exports 55 percent to the North American and European markets. Meanwhile, Shennan Circuits specialises in making high-precision, high-density and high- reliability PCBs with 2 to 32 layers, and it aims to further expand exports.

Chinese manufacturers are conducting volume production of multi-layer and other advanced PCB products. However, in the high-end product segments like HDI, only CCTC and a few other domestic companies are capable of conducting volume production.

Most of the Chinese plants established by international PCB companies are in leading positions in terms of technology and/or production scale. These foreign-owned companies or joint ventures contribute greatly to China's PCB industry and will continue to help the indigenous industry advance its level of manufacturing technology.

This is a centralised industry, with approximately 86 percent of the PCB revenue coming from manufacturers located in the two main production regions of the Yangtze River Delta and the Pearl River Delta. These are two of the most important regions for China's electronics manufacturing industry.

The advantages of China's huge domestic demand and low cost structure are encouraging more international companies to outsource portions of their business to PCB manufacturers based there, or establish joint ventures or foreign- owned companies in China. These advantages are enabling China to gain more market share in the global PCB industry Specifically, China's PCB sector accounted for a 14.5 percent share of the global PCB market in 2002 and it ranked as the third largest manufacturer of PCBs that year.

Beyond supplying the domestic market, a large portion of China's PCB output is exported. China's electronics industry will continue to enjoy rapid growth in the coming years and this will help fuel the PCB sector. The persistent migration of global electronics manufacturing to China will further accelerate the development of the domestic PCB industry. iSuppli predicts that China's PCB industry will enjoy annual growth of more than 20 percent during the next few years, elevating the nation to become the world's second- largest PCB manufacturer.

© iSuppli Corporation.