At present, Chinese Mainland has become the most important electronic component market in the world, and the downstream terminal OEM has been mostly distributed in Chinese Mainland. However, recently, the operating environment and conditions in the coastal areas of Chinese Mainland have become increasingly stringent, and the mainland funded electronic component factories are catching up with each other in terms of technology and market strength, which has caused a certain degree of competitive pressure on the global PCB industry; For this purpose, this paper analyzes the current situation and development trend of electronic circuit and related PCB industry environment in Chinese Mainland.
With the cluster of downstream electronic terminal product manufacturing bases, there is no doubt that Chinese Mainland continues to be the world's largest production region, with a market share of 44.4% in 2013 and an estimated 45.6% in 2017; In South Korea, the growth effect of PCB industry is driven by brands. In addition, the production lines in South Korea are mainly distributed locally, so the regional market in South Korea accounted for 14.8% in 2013; It has officially surpassed 13.6% of Taiwan and become the second largest production region in the world. The production proportion of Taiwan businessmen on both sides of the Taiwan Straits will be reduced due to the capacity expansion in the west of Chinese Mainland, but the output value of Taiwan will still maintain a growth rate of about 2% year by year.
In terms of PCB products, Chinese Mainland produces medium and low-level single-sided, double-sided and multi-layer board products with the largest market demand, accounting for more than 60% of the overall PCB production in Chinese Mainland in 2013. The main locked application fields include PC, Nb, communication, consumer electronics, etc; HDI and softboard are the second and third largest production products, mainly used in mobile phones and other mobile devices; However, the IC carrier is still far behind Japan, Taiwan, South Korea and other regions.
In Chinese Mainland, multi-layer board products are widely used, and consumer electronics account for about 30% of the total; The second is the communication products with more HDI and flexible boards, accounting for about 25%.
According to the survey, at present, there are about 2500 PCB manufacturers in the world, while the number of PCB manufacturers in Chinese Mainland alone exceeds 1200, accounting for half of the world.
It can be seen from the above data that at this stage, as Chinese Mainland is the main production base of global electronic products, the global PCB production has moved and distributed towards Chinese Mainland in the value chain, forming that the PCB output value in Chinese Mainland has ranked first in the whole country; However, the downstream application products are concentrated in the middle and low-level: including personal computers, Nb, consumer electronics, etc., so the corresponding proportion of PCB products is also concentrated in the middle and low-level products, including the traditional multi-layer hard board, which is still higher than that of other advanced countries, and more than 50%.
Following the development steps and policy promotion in Chinese Mainland, the PCB industry follows the same steps, 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 where the central government began to promote the development of the Great West in 2010; Since the establishment of a PCB Factory in Huizhou by Huatong in 1994, Taiwan PCB manufacturers have followed the policy of large-scale development in Chinese Mainland. At present, they are mainly concentrated in South China and East China. Since 2010, Taiwan businessmen have also started to settle in Chongqing, Chengdu and other western cities.
However, from the perspective of industrial development, the PCB supply chain in the western region of Chinese Mainland has been gradually laid out due to the concentration of notebook computers in electronic manufacturing. However, from the perspective of cost and manpower, in order to moderately relieve the operating pressure in coastal areas, and considering the support of equipment and materials, central China has become an important backup base for coastal manufacturers, such as Hubei, Hunan, Jiangxi, etc.
However, considering the market development potential, industrial chain, customer types, etc., the local PCB manufacturers in Chinese Mainland will challenge the past cluster ecological development mode of PCB industry development in Chinese Mainland:
Limited by environmental emissions, production scale, market, etc., it will be difficult to present a high degree of industrial clustering in South China and East China in the future; On the other hand, the deterioration of coastal production conditions has not been significantly improved, but there will be a high market risk in the inland layout. Considering the above factors, most of the production expansion plans of Chinese Mainland's local PCB manufacturers choose to be not far from the original site / Headquarters (within 2 hours by car). Among them, Jiangxi and Anhui have become the first choice for many mainland PCB manufacturers in the layout, so as to facilitate production backup, However, this phenomenon will create challenges for upstream and supporting industries in customer service.
Summarize the overall business environment issues of the PCB industry in Chinese Mainland at this stage:
·The cost continues to rise and the uncertainty of the operating environment increases: in terms of the industrial environment, the Chinese government's requirements for industrial layout and transformation, the long-term appreciation trend of the RMB, the integration of two taxes, the labor contract law, environmental protection governance requirements, etc; As for the business side of the manufacturer, the enterprise management cost, human resource cost, social responsibility cost, etc. continue to increase.
·The international economic environment fluctuates greatly: it is more and more closely linked with the overall international economic environment, including the rise of raw materials, exchange rate fluctuations, RMB appreciation pressure, etc.
·Intense homogenization competition: the scale of PCB industry in Chinese Mainland continues to expand, and a hundred schools of thought contend. Driven by the lack of emerging products, the homogenization competition situation of PCB manufacturers is becoming more and more obvious.
·The global PCB leading manufacturers are heavily deployed: the global PCB leading manufacturers such as Europe, America, Japan, South Korea and Taiwan continue to heavily deploy in Chinese Mainland, and the overlapping industrial competition has resulted in close combat.
Due to the diversification and shorter life cycle of consumer electronic products, the number of products is small and the customization is high. Therefore, PCB manufacturers in mainland China are actively engaged in this field and carry out niche competition; The advantages of one-stop service are as follows: it can optimize the manufacturing of medium and small batches of PCBs, reduce the labor cost of PCB design invested by customers, and is suitable for the rapid production of batch samples in the center; However, there are also some limitations, including the production of small and medium-sized batches in existing companies, but the large quantities have to be transferred to other companies due to the lack of capacity support, resulting in the cost of production line conversion; The one-stop service deals with a large number of customers with diverse and miscellaneous attributes, which makes it difficult for PCB manufacturers to manage, and the application also locks in a small number of diverse applications; Including Shennan circuit, XINGSEN express, Jiesai technology, Zhuhai founder, Zhuhai Yuansheng electronics, etc., have actively deployed one-stop Allegro services.
Since 2008, the relocation of the computer production base led by Chongqing has been an important trend for electronic components. Large international brands such as HP and Dell have been deployed in the West. As a result, the OEM factories including Hon Hai, Compal and Wistron have been moved from the coastal areas to the West. They have also indirectly led the layout of Taiwan PCB factories in the west, including Hanyu bode, Jianding, Zhichao and Huatong.
Most mainland businessmen continue to invest in coastal layout, including founder, Shantou ultrasonic, Yuansheng, Quanbao, etc., while Bomin electronics selected Jiangsu Dafeng to expand production, and Shennan circuit also selected Jiangsu Nantong and Wuxi to set up factories. The main considerations of land merchants include whether the market demand can really support the scale of plant establishment, the same problems with inland talent flow and management, and the overall business environment, including wastewater discharge license, etc.
At present, although there is a gap between the wages in the inland areas and those in the coastal areas, the quality of personnel still needs to be strengthened, resulting in management difficulties. For example, a certain section of the production line in the coastal factory needs 10 people to complete, but the same section of the production line in the inland factory needs 15 people to complete. Although the average wage of people is low, the overall human cost will not be saved; Another key point for mainland businessmen not to go inland lies in customer relations; The customers of land-based PCB factories are mainly small and medium-sized local electronic factories. Most of these electronic factories are located in South China and East China, and there is no need to move inland. Therefore, land-based PCB factories do not have much incentive to move inland. When it comes to moving, it is mostly achieved through mergers and acquisitions. For example, the plant of Zhuhai founder in Chongqing is laid out through mergers and acquisitions, including Guangdong Shengyi group, rather than re establishing new production lines in the mainland as other manufacturers.
It is estimated that the global smart phone market will exceed 1billion in 2014, including more than 400million in Chinese Mainland, accounting for about 40% of the world. It can be seen that Chinese Mainland has become a competitive place for global electronic component manufacturers in the smart phone market. In the future, the largest growth momentum of the global smart phone market will come from Chinese Mainland. In addition to international brands including apple and Samsung, ZTE, Huawei Lenovo and others will play a key role in the future of Chinese Mainland's local smart phone brands.
As ZTE, Huawei, Lenovo and other local brand manufacturers in Chinese Mainland all had deep and long-term cooperative relations with land-based PCB manufacturers in the past, land-based PCB manufacturers will certainly not miss the opportunity of the rise of this wave of smart phone market, and even seek further cooperation through official relations.
Although Chinese Mainland has become the world's largest production base of electronic components, in terms of technology and product layout, there is still a distance between the local land-based factories in Chinese Mainland and the major global leading manufacturers; However, due to the long-term cultivation in the small and medium-sized and local brand markets, it has also achieved a relatively niche market and does not need to participate in the high competition in the global electronic component industry. Through the SWOT perspective, this paper analyzes and summarizes the local electronic component industry in Chinese Mainland.
