Chinese mainland Chinese mainland has become the most important electronic component market in the world. The downstream terminal manufacturing industry has been mostly in mainland China. However, the environment and conditions of Chinese mainland coastal areas are becoming increasingly stringent. The land based electronic components factory is catching up with the technological and market strength, which will create a certain degree of competition pressure on the global PCB industry.

 

China has become the first largest production base for electronic products worldwide.

 

Under the cluster of downstream electronic terminal products manufacturing base, China has no doubt continued to be the world's largest production area, with a market share of 44.4% in 2013, and estimated that it will grow to 45.6% in 2017. In 2013, South Korea's brand growth led to PCB industry growth of 14.8%, which officially surpassed 13.6% of the Taiwan region and became the second largest production area in the world. The proportion of production on both sides of the Taiwan Strait will be compressed by the western part of China's capacity, which will reduce the production proportion in the Taiwan region. However, the output value of Taiwan will still maintain an annual growth of about 2%.

 

 

 

According to the survey, there are about 2500 PCB manufacturers worldwide, and only 1200 PCB companies in mainland China account for half of the world's total. For PCB products, the Chinese mainland has the largest demand for mid and low order single sided and multi-storey plates, which accounted for more than 60% of the total PCB production in Chinese mainland in 2013. The main application areas include PC, NB, communications, consumer electronics, etc. The second largest application is mobile phone, HDI and other mobile devices. However, the IC carrier is still far behind Japan, Taiwan, South Korea and other regions.

 

According to the above data, China's mainland is the main production base of global electronic products, and the global PCB production has been moving toward China's value chain and layout. However, the downstream application products are more concentrated in medium and low-level products, including personal computers, Nb, consumer electronics, etc., so the corresponding proportion of PCB products is also concentrated in medium and low-level products, including traditional multilayer hard boards. Compared with other advanced countries, the proportion is still higher, and more than 50%.

 

Potential opportunities and challenges of PCB industry environment

 

Following the development of China's mainland and the promotion of policies, the PCB industry has been carrying out the same layout, including the Pearl River Delta Development Zone in 1994, the Yangtze River Delta Development Zone in 2000, the Bohai rim Development Zone in 2005, and the Western Triangle Development Zone which started the great western development in 2010. Taiwan started its PCB plant in Huizhou in 1994, and Taiwan PCB manufacturers also have a layout in Chinese mainland. The current focus is on Southern China and East China. Since 2010, Taiwanese businessmen have begun to enter Chongqing and Chengdu city.

 

However, from the perspective of industrial development, China's western region is mainly focused on notebook computers, because of the electronic manufacturing cluster. The supply chain of PCB board has been completed. But from the cost and manpower perspective, in order to appropriately relieve the pressure of the coastal areas and take into account the support of equipment and materials, central China has become an important base for coastal manufacturers, such as Hubei and lake. South, Jiangxi, etc.

 

However, Chinese mainland PCB operators will challenge the past cluster development model of Chinese mainland PCB industry in the light of market potential, industry chain and customer type.

 

Limited by environmental emissions, production scale, market and other factors, it is difficult to show the phenomenon of high industrial cluster in South China and East China in the future. On the other hand, the deterioration of coastal production conditions has not improved significantly, but there is a high risk of market in the layout of inland. Considering these factors, Chinese mainland PCB industry expansion plan mostly choose not far from the original site / Headquarters (2 hours drive), and Jiangxi and Anhui become the first choice for many mainland PCB companies to facilitate production and backup. However, this phenomenon will cause challenges in customer service for upstream and supporting industries.

 

Meanwhile, the Chinese mainland's PCB industry as a whole still has the following problems:

 

1. The cost continues to rise and the uncertainty of business environment increases

 

The international economic environment fluctuates greatly

 

3. Global PCB leads the layout of large factories

 

4. Homogenization and fierce competition

 

Inland or coastal -- computer production base layout changes

 

Since 2008, the computer production base led by Chongqing has been moving inward, which is an important trend for electronic components. Large international brands such as HP and Dell have been deployed in the West. As a result, they have driven the generation factories such as Honghai, Renbao and Weichuang to move from the coastal areas to the West, and indirectly led the layout of Taiwan PCB factories in the west, including hanyubode, Jianding and Zhizhi Chao, Huatong, etc.

 

Most of the mainland companies continue to invest in the coastal layout, including founder, Shantou ultrasonic, Yuansheng, Quanbao, etc., while Bomin electronics chose Jiangsu Dafeng to expand its production, while Shennan circuit also chose Jiangsu Nantong and Wuxi to set up factories. The main considerations for mainland businessmen include whether the market demand can really support the scale of the plant, the inland talent flow and management also have their own problems, and the overall business environment, including wastewater discharge license, still has room.

 

At present, although there is a gap between inland areas and coastal areas in terms of wages, the quality of personnel still needs to be strengthened, resulting in management difficulties, and the labor cost will not be relatively saved. Another key point for mainland manufacturers not to move inland is their customer relationship: most of their customers are small and medium-sized electronics factories in mainland China. Most of these electronics factories are located in South China and East China, and there is no need for them to move inland. Therefore, there is not much incentive for mainland PCB factories to move inland. If we really want to move, most of them adopt the way of merger and acquisition. For example, the factory building of Zhuhai founder in Chongqing is arranged through merger and acquisition.

 

Bright future of China's intelligent communication market

 

Mobile phone mobile phone Chinese mainland has a hotly contested spot in the world. It is estimated that the global smartphone market will exceed 1 billion in 2014, of which more than 400 million Chinese mainland accounts for about 40% of the world's total. This shows that mainland China has become a battleground for global electronic components manufacturers in the smart phone market. The largest growth momentum of the global smartphone market will come from mainland China, including international brands including Apple and Sams. Ung, ZTE, HUAWEI, Lenovo and other will play the future mainland China smart mobile phone brand tackling force.

 

And since the mainland's local brand manufacturers such as ZTE, HUAWEI, Lenovo and so on, have deep and long-term cooperation with PCB, China's mobile phone market is not going to pass up. Even through the official relationship, it is possible to seek further cooperation through this official relationship. PCB

 

Many manufacturers actively layout pcb one-stop service

 

Although China has become the largest electronic component production base in the world, however, in the layout of technology and products, mainland China's mainland owned factories are still some distance from the leading global leading factories. However, due to long-term plough in small and medium-sized local brands, the mainland's niche market is also gaining traction, and it is not necessary to participate in the highly competitive global electronic component industry. Through the SWOT configuration, we analyze and integrate the mainland China local electronic components industry.

 

Due to the diversification and shorter life cycle of consumer electronic products, the products are moving towards less quantity and high customization. Therefore, PCB manufacturers in mainland China are actively engaged in niche competition in this field. The advantages of one-stop service are as follows: it can optimize small and medium batch PCB manufacturing, reduce the labor cost of customer input in PCB design, and it is suitable for rapid production of batch samples in the center. However, there are also some limitations, such as small and medium batch production in existing companies, but large batch production in the lack of capacity support has to be transferred to other companies, resulting in the cost of production line conversion; the number of customers in one-stop service processing is large, and the attributes are diverse and complex, resulting in the difficulty of PCB manufacturers in management, and the application is to lock in a small number of diverse applications. Including Shennan circuit, XINGSEN express, Jiesai technology, Zhuhai founder, Zhuhai Yuansheng electronics, etc., all have actively arranged one-stop Allegro service.