5G promotes high growth in PCB demand, and high-end HDI usher in a new development in the future

Note Advanced HDI and Package Substrates

The vigorous development of 5G communication and the high growth of the server industry drive the demand for communication boards.

According to Prismark statistics, the PCB market size of the downstream communication industry in 2018 was US$11.692 billion, and it will reach US$13.747 billion in 2022, with a compound annual growth rate of 6.2% from 2017 to 2022. We estimate the subdivision of wireless base stations. In 2019, the global PCB market size for 5G wireless base station construction is about 13.365 billion yuan, and it will reach a peak of 45.163 billion yuan in 2022. The explosive growth of the server market in 2018 drove the demand for high-level boards. In the future, 5G construction will further expand server demand and promote server product upgrades, and the server PCB market is expected to continue to expand. Communication board business manufacturers will have considerable revenue in the next 2-5 years. It is recommended to pay attention to Tengchuangda Circuits involved in 5G base stations and terminals, Shengyi Technology, Shennan Circuits, Hudian Co., Ltd. and Chongda Technology.

The electrification and intelligence of automobiles bring new growth space for the automobile PCB market.

In 2018, the output value of automotive PCB was 7.6 billion US dollars. It is expected that the global automotive PCB output value will reach 10.171 billion US dollars in 2023, with a CAAGR of 6%. It is estimated that in 2023, the PCB production of traditional fuel vehicles will drop to US$4.149 billion, and the CAAGR will be -5%; the new PCB output value of automotive electrification will be US$5.437 billion, and the CAAGR will be as high as 23.61%; the new PCB demand for automotive intelligent networking will be 5.85% billion, with a CAAGR of 10.54%. The production threshold for safety automotive panels is relatively high, the competition in the domestic market is relatively small, and manufacturers have huge potential for profit in the future. It is recommended to pay attention to Hudian, a leader in traditional automotive safety control electronics, and Shennan Circuits, which has realized the supply of motor control systems for new energy vehicles.

In recent years, consumer electronics have continued to innovate, creating new growth space for consumer electronics PCBs.

According to Prismark statistics, the PCB output value for consumer electronics in 2018 was US$24.171 billion, and it is expected to reach US$28.087 billion in 2022, with a CAAGR of 4.2%. In the subdivisions, the smart wearable device market is experiencing explosive growth. The shipment volume in 2018 was 135 million units, and it will reach 205 million units in 2023. The CAAGR from 2018 to 2023 is 23%, driving the growth of FPC demand. 5G will also become a new growth point for smartphones. It is expected that 5G mobile phone shipments will reach 725 million units in 2023, driving demand for high-end PCB boards such as SLP and high-end HDI. The revenue of manufacturers with FPC as their main business and SLP and high-end HDI production capacity will usher in new growth. It is recommended to pay attention to the domestic FPC leader and Pengding Holdings with SLP mass production capacity, Dongshan Precision, a major domestic FPC manufacturer, and Zhongjing Electronics with potential small batch high-end HDI mass production capacity.

At present, China mainly focuses on low-end products, and it is expected to achieve domestic substitution in the high-end product market. High-end PCB product manufacturers have good prospects for future development.