The trade war between China and the United States is becoming more and more intense. Although there is a hotline between China and the United States recently and the G20 summit is expected to hold a dialogue, the trade differences between the two sides are very deep and it is difficult to resolve in the short term. Next year’s focus on 5G infrastructure construction by telecom companies in various countries is a relatively sound investment direction in this uncertain era. Among them, 5G base station construction business opportunity, PCB (printed circuit board) specification will have the significant enhancement, can develop high specification PCB industry will benefit.
By observing the development schedule of 5G spectrum in various countries, the frequency band between 3GHz and 6GHz will be released in South Korea, Japan, China and Europe in the first half of 2019, which is much higher than the highest 4G frequency band of 2.7ghz. The PCB specification of 5G equipment will be improved in order for the high-frequency signal to operate smoothly: PCB upstream CCL material (copper foil substrate) must be provided with Low Dk (dielectric constant) and Low Df (Low dissipation factor) material specifications to provide this kind of high-order PCB industry, in order to win 5G business opportunities.
In addition to Low Dk and Low Df, when 5G frequency band develops to 40GHz and 80GHz MMW high frequency, the original soft plate antenna will be limited, and the ultra-fine spacing scheme with width less than 0.5mm will be adopted. In addition, 5G adopts the design of 4*4 array antenna, and the demand for IC carrier plate is also increased, which will stimulate the backend support business opportunity of 5G base station.
Taiwan’s new research team believes there is still a lot of demand for broadband in the future as consumers demand more online video and quality, and data traffic bursts.
The American system netcom system manufacturer estimated that the year of 2019 will be the first year of 100G volume release, when the price comes to sweet spot, the brand manufacturer will upgrade from 40G to 100G Switch, and the Taiwan supplier of high-order Switch PCB, such as copper foil substrate manufacturer taiyao, PCB manufacturer jinxiang, etc., is estimated to benefit from the 100G volume release trend and drive the growth of performance.
Under the impact of sino-us trade war, high-order PCB will be produced back to Taiwan and will not be affected by the tariff. The third phase of U.S. tariffs, which are expected to increase from 10% to 25% of the $200 billion in imports from China starting in January 2019, will hit players such as netcom, motherboards, PCB and power supplies.
In the past, the tariff of PCB products sold to the United States was mostly less than 5%. In the future, more enterprises will be forced to shift production from China. Among them, the gross profit rate of netcom enterprise exchange, high-order servo and other products is 20-30%.
The niche PCB PCB plant and netcom copper foil base material plant, such as taiyao and jinxitong PCB manufacturers, have production bases in Taiwan in addition to high gross profit, which can leave advanced technology in Taiwan and enjoy the advantage of future orders (product technology upgrade).
Benefit from high-frequency PCB to 5 g, 100 g high-speed transport development trend, and the trade policies of China and the United States, more and more expected netcom, server related EMS, ODM manufacturer, will advanced CNC production capacity to move back to Taiwan, reshape advanced CNC PCB industry groups, high-order netcom Data Center, the Switch supply chain, including PCB copper foil substrate supplier yao, photoelectric, PCB factory suppliers like electricity, high frequency soft plate material developers county, 5 g 5 g base stations IC loading board, such as suppliers kinsus Q1 to Q4 this year ~ next year to start the layout, Make server, data center, high-order 100G Switch contribution to drive revenue and profit growth from Q2 next year.