The Printedcircuitboard, or PCB for short, is a substrate for assembling electronic parts, and a printed board for connecting and printing components on the general base material according to the predetermined design. The main function of this product is to connect various electronic components to preset circuits, which ACTS as relay transmission and is the key electronic interconnection of electronic products. The manufacturing quality of printed circuit board not only directly affects the reliability of electronic products, but also affects the overall competitiveness of system products. Therefore, printed circuit board is called “the mother of electronic system products”.
Glass fiber yarn: the glass fiber yarn is made by burning silicon sand and other raw materials into liquid in the kiln. It is made into extremely fine glass fiber through extremely tiny alloy nozzles, and then hundreds of glass fibers are tangled to form glass fiber yarn. The construction investment of the kiln is huge. As a capital intensive industry, the 30,000-ton kiln needs 400 million RMB, the construction of the kiln needs 18 months, the business cycle is difficult to grasp, and once the kiln is ignited, the production must be uninterrupted for 24 hours, and after five years or so, the production must be stopped for half a year for maintenance, and the exit cost is huge.
Glass fiber cloth: glass fiber cloth is one of the raw materials of copper clad sheet. It is made of glass fiber yarn, accounting for 40% of the cost of copper clad sheet (thick sheet) and 25%(thin sheet). Similar to weaving enterprises, fiberglass cloth manufacturing can control production capacity and quality by controlling rotating speed, and the specification is relatively simple and stable. Since world war ii, there has been almost no big change in specifications. Unlike CCL, the price of fiberglass is most affected by supply and demand, with prices fluctuating between $0.50 to $1.00 per meter in recent years. Taiwan and China now account for about 70 per cent of global capacity. The relationship between upstream and downstream is the key for operation. The price of one loom is 10,000-150,000, generally more than 100 can be normally produced. However, the subsequent heat treatment and chemical treatment equipment has a higher capital requirement of up to 10 million, and the capacity expansion of weaving is easy and relatively flexible.
Copper foil: copper foil is the raw material that accounts for the largest proportion of the cost of copper sheet, accounting for about 30% of the cost of copper sheet (thick sheet) and more than 50% of the cost of copper sheet (thin sheet), so the price increase of copper foil is the main driving force of the price increase of copper sheet. Copper foil is widely used, not only in the copper clad industry, when the industry is depressed, copper foil manufacturers can switch to other USES of copper foil. The price of copper foil is closely reflected in the change in the price of copper, with copper prices rising, copper foil manufacturers to the downstream pressure. The high technology barrier of the copper foil industry leads to the shortage of domestic supply.
Copper clad sheet (CCL for short) is a semi-solidified bond sheet made by using electronic glass fiber cloth as the base material, impregnated with epoxy resin, after drying, and then coated with sheet thin copper foil on single, double or multi-layer board, which is the direct raw material of PCB under special hot pressing conditions. Copper-clad industry capital demand is large, the scale of small factories about 50 million yuan, a high concentration of about 100 nationwide. The copper clad plate industry is a cost-driven cyclical industry. In the upstream and downstream industrial chain structure, CCL has strong bargaining power for PCB. As long as the downstream demand is favorable, it can transfer the pressure of rising cost to the downstream PCB manufacturers. As the copper-clad products are of single use, they can only be sold to printed circuit board factories. When PCB is depressed, the price can only be reduced to ensure the utilization of production capacity.
PCB: compared with upstream and downstream industries, printed circuit board industry features determine that its industrial concentration is not high; In the fierce market competition environment, only those enterprises with good market positioning and high operation efficiency can have long-term competitiveness. A common PCB production line needs more than 20 million yuan, a multi-layer board needs to invest 50 million yuan, and an HDI needs to invest more than 200 million yuan. Due to the huge industry, very detailed division of labor, there are specialized in drilling and other single-station process outsourcing, low-grade products oversupply. High-end printed circuit board industry such as HDI is a capital and labor intensive industry with high requirements on management and technology, which often becomes the bottleneck of capacity expansion.