Does the factory do not follow, will the price rise of PCB continue?

Since July, the major PCB plants, including the ohmwei electronics and the construction of the group, have issued a price rise notice on the grounds that they are affected by environmental and cost factors. Under the double pressure of environmental protection and price increase of raw materials, more and more PCB factories have "bowed their heads" and have chosen to raise prices. From the end of 2017 Jiangsu Kunshan limit, to Zhuhai, Shanghai limit, and to today's Shenzhen inspection, the entire PCB industry in this wave will usher in a new situation after the wave of price rises, the overall price range is expected to be 20 - 30%.

Although mainland manufacturers have announced price increases, Taiwan manufacturers say they will not follow suit easily. According to DIGITIMES, at present, PCB has a lot of spare capacity. At this stage, it is not easy to follow up the price increase. Indeed, as the market demand is not ideal, resulting in idle capacity is still quite a lot, coupled with the second quarter of this year, copper foil factory prices are not obvious. Therefore, the industry agreed that it is too difficult to follow up the price at this stage.

Does the factory do not follow, will the price rise of PCB continue?

However, as the 5G R15 standard freezes and the business process accelerates, the editor thinks that the situation of PCB idle capacity will be changed. From the whole electronic industry environment, as China accelerates into the 5G era, the consumer electronics industry will usher in a new round of development upsurge, especially the demand for high frequency and high speed copper clad board will increase exponentially.

According to Anxin securities, the intergenerational upgrading of ten years will bring the demand and added value of PCB / CCL to 5G. The "five key technologies" proposed by China's 5G 5G group will bring great changes to the ecology of the wireless access network device industry chain.

1) 5G radio will introduce Massive MIMO (large antenna array) technology, and the number of 5G base stations will increase substantially compared with that of 4G. The 2 / 3 of the output value of the mobile communication base station antenna will be transferred to the PCB board industry chain, so the value of the high frequency PCB / copper clad plate that is estimated only for the 5G base station antenna will be more than 10 times more than that of the 4G. At present, many telecom operators begin to purchase 5G equipment and start deploying 5G network.

2) 5G network will carry greater bandwidth flow, investment in routers, switches, IDC and other equipment, and the demand for high-speed PCB / copperplate will also increase greatly. In addition to the increase in demand, the high performance equipment will adopt high frequency (antenna) high speed (IDC / base station) board material with higher value, which will bring both the added value and the amount of the PCB / copper clad plate industry chain to double increase.

3) 5G communication equipment will be the core driving force of the PCB industry in the next 3 years. The PCB industry has entered a mature stage, and the traditional application market has been saturated. The key to growth lies in the newly emerging segments. Prismark believes that the car and communications equipment will take over consumer electronics and become a new engine for the growth of the industry in the next 5 years. Communications PCB will be the core driving force for the growth of the industry in the next 3 years.

5G brings the opportunity of high-end materials localization, from cycle to growth. The copper clad plate is the main material made by PCB. In the 5G era, the domestic companies with high production capacity are expected to gradually break through the foreign monopoly, desalinate the original cycle attributes and usher in both performance and valuation.

This wave of PCB will increase with the strengthening of environmental protection and the increase of raw material costs. After that, the rising demand for 5G may provide sufficient power for the continuous rise of PCB prices, and the present idle capacity of the factory can be fully utilized, and the Taiwan manufacturers will not have a wave of inflation at the time. Cicada.