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At present, although there are many pure domestic PCB enterprises, the proportion of output value in the world is relatively low, mainly single and double boards and ordinary multilayer boards. With the development of 5G, domestic enterprises will vigorously develop high-end products and gradually catch up with international enterprises.

Domestic PCB enterprises are currently dominated by low-end products

From the perspective of product structure, the domestic product structure is dominated by single and double boards and ordinary multilayer boards, accounting for 37.1% and 21.3% of the global output value respectively. Comparing the product structure of domestic and Taiwan-funded companies, it can be found that domestic manufacturers only surpass Taiwan-funded companies in single and double boards with low technical level, and there is still a certain gap between ordinary multilayer boards and flexible boards. In ordinary multilayer boards, domestic enterprises account for 21.3% and Taiwan-funded enterprises account for 31.3%; while in flexible boards, domestic enterprises account for 15.5% and Taiwan-funded enterprises account for 22%. However, HDI and package substrates with higher technical level still lag far behind Taiwan-funded manufacturers, with domestic-funded enterprises accounting for less than 10% and Taiwan-funded enterprises accounting for about 37%, more than one-third. In the global total output value, the output value of domestic-funded enterprises is 18.3%, and that of Taiwan-funded enterprises is 29.5%.

Overall, although China's domestic PCB output accounts for more than half of the world's total, the proportion of domestic PCB manufacturers 'output value is still low, and the number of domestic manufacturers is not large. In addition, pure domestic enterprises still have a large catching up space in high-end products, especially HDI and packaging substrates.

Source: Prismark

Domestic PCB enterprises vigorously develop high-end products

The domestic PCB industry has gradually increased its research and development expenses in the past four years, from 1.27 billion yuan invested in research and development in 2015 to 2.55 billion yuan invested in research and development in 2018, doubling the research and development expenses in four years. It can be seen that domestic PCB companies continue to increase investment in research and development of high-end products in order to maintain their core competitiveness.

Source: WIND

5G drives strong demand for high-end PCBs

The development of the 5G era will promote the rapid development of IDC (Internet Data Center), and servers are most of the cost expenditure of data centers, which is the core, which will promote the strong demand for domestic PCB servers and boost the entire domestic high-end PCB industry. According to Prismark data statistics, it is estimated that the average growth rate of PCB industry from 2018 to 2023 will be 3.7%, among which the data center and wireless base station will contribute more, with growth rates of 5.8% and 6.0% respectively. These two are the core of 5G industry chain. The development of 5G will promote the development of domestic high-end PCB products as a whole and is expected to catch up with international enterprises.

Source: Prismark