The new crown pneumonia epidemic has shrunk Thailand’s printed circuit board exports by more than 21% in 2020, but will return to the growth trajectory with the 5G wave and changes in consumer behavior next year.
In 2020, the global printed circuit board (PBC) business will be affected by the global pandemic of New Coronary Pneumonia. As the world’s sixth largest printed circuit board production base and exporter, Thailand is also difficult to be alone. The new crown pneumonia epidemic caused the global economy to fall into recession, but also hit the electronics production chain. This has led to a significant drop in the purchasing power of consumers and the corporate sector.
In addition, all parties are expected to become the fifth generation mobile communication technology (5G) infrastructure investment projects that will promote the return of growth of electronic products this year. Under the above circumstances, the demand for electronic products with printed circuit boards as the main components in the global market will inevitably shrink in 2020, and it will cause pressure on Thailand’s printed circuit board exports this year, shrinking exports by 20.9-23.6% in 2020. The total value of exports is about 9.274-9.608 billion US dollars.
However, Kaitai Research Center expects that after the new coronary pneumonia epidemic eases in 2021 and the global economy begins to recover, the demand for electronic products in the international market will resume growth as the purchasing power of the consumer and corporate sectors recovers. In addition, countries are competing to invest in 5G infrastructure projects to become a leader in the digital economy, and changes in consumer behavior after the new coronary pneumonia epidemic may stimulate global demand for printed circuit boards to resume growth in 2021, with growth rates ranging from 3.0-5.5% The total value of exports can reach 955.4 million US dollars to 1.0135 billion US dollars.
For the opportunities of Thai companies in the 5G wave to promote electronic products into a new growth cycle, Kaitai Research Center believes that the Thai printed circuit board manufacturing industry will receive considerable benefits, because most 5G electronic product printed circuit boards are still The traditional printed circuit board must use a 5G processor with a printed circuit board that prevents electromagnetic interference. The price of this kind of printed circuit board is higher than the general printed circuit board, and there are fewer competitors on the market.
Currently, only one large printed circuit board manufacturer in Thailand plans to invest in production. Therefore, in order to find business opportunities in the 5G wave and more open commercial space, government departments should give preferential rights and support to Thai manufacturers to upgrade their printed circuit board production technology.