With strong official support and a capital market full of hot money, the PCB industry chain has been gradually catching up with the leading group in both production scale and technical capacity in recent years.
Industry pointed out that the domestic PCB factory possesses larger capital advantage, capital market liquidity, the market better, in recent years as the global PCB listed to raise money is easy, compared with the past, many leading manufacturers such as shennan, macro, JingWang etc, capital are clearly outbreak growth, cash-rich make their position on the capacity expansion. For example, shennan electric circuit went public in 2017, and raised 1.268 billion yuan. Besides the capacity expansion of HDI board, it also involves in IC board. Jingwang recently announced that it will issue 978 million yuan of convertible corporate bonds, which was officially approved by the CSRC in June, and the funds are expected to be used to continue production.
In addition to the continuous expansion of production scale, the domestic industry technology is also catching up, and actively strive for international orders and cooperation opportunities. Shennan electric circuit, with communication products as its main force, is one of huawei’s main suppliers. Driven by the sound development trend of domestic communication brands, it is also following up the research and development of 5G related products. Eaton electronic has been working on automobile electronics for many years, and has gradually obtained the certification of Bosch, Continental and other international manufacturers. The capacity will be gradually expanded this year, which is expected to drive further growth of the company’s revenue.
Domestic enterprises have always been good at through mergers and acquisitions overseas enterprises to develop the market, which in the PCB industry, precision electronics manufacturers dongshan precision in 2016 America’s soft panel factory MFLX (Multi – Fineline Electronix), formal into the supply chain, profit ability, sharply in 2017, net profit reached 519 million yuan, from 2015 RMB 0.31 yuan soared more than 16 times. However, dongshan precision announced in June that it plans to buy Multek of flextronics’ PCB business group for $29.25 million, which is expected to give the company access to advanced PCB technology. The subsequent growth of market competitiveness should not be underestimated.
Industry groups also is domestic complete PCB factory can be one of the reasons for the high speed development, from the upper reaches of the copper foil substrate assembly plant and plant to the downstream, upstream copper foil substrates such as factory have good science and technology, glass fiber.ltd Jin Anguo ji, : CNC equipment factory, and so on, are all with RMB 1 billion quarterly revenue more than abilities good manufacturers.
In addition, the environmental protection policies across the country are tightened, which is beneficial to the development of the whole industry. As the restriction and emission policy reduces the living space of small factories and eliminates low-quality production capacity, the market supply and demand will be more stable. Meanwhile, it can also improve the brand owners’ evaluation of the overall domestic manufacturers and improve their ability to win orders.