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Demand For Electronic Products Is Booming, PCB Manufacturers Are Willing To Raise Prices
author: Edit：Shenzhen Xin Da xing Electric Technology Co.,ltd
2022-01-10
Affected by the price increase of raw materials, PCB (printed circuit board) companies are expected to increase prices strongly.
Shennan Circuits released an investor activity record form on June 4, and disclosed that the price of some raw materials has risen recently, and the company will strengthen communication and negotiation with suppliers and customers to jointly face the pressure of rising material prices.
Suntak Technology and Xingsen Technology stated on the interactive platform that they will adjust the price of PCB products based on fluctuations in raw material prices
The upstream raw materials of PCB have continued to rise from the end of 2020 to the present, and over-booking, grabbing production capacity, and grabbing raw materials are the norm.
Terminal demand remains high, and the problem of tight upstream raw material supply is also difficult to solve in the short term. Seeing that the traditional peak season for electronic products is coming, if the demand remains unchanged, it is not ruled out that the third quarter will continue to rise.
The basic material for PCB manufacturing is CCL (Copper Clad Laminate), and its upstream is mainly raw materials such as copper foil, fiberglass cloth, and epoxy resin.
The prices of various raw materials in the upstream of copper clad laminates have continued to rise since last year, and the prices of the industrial chain have risen across the board.
For example, copper prices continued to rise. The LME copper price broke through the $10,000 mark in May 2021. The price of electronic copper foil rebounded rapidly since the third quarter of last year. In January 2021, it reached a nearly four-year high.The price has risen by more than 50%.The prices of commonly used epoxy resins also began to rise from the third quarter of last year, and the price in January of this year exceeded the price high of 2018
一、Electronics demand rebounded
1.PCB rapid growth
PCB is the support of electronic components, and it is an indispensable part of various electronic products.
Since the global epidemic has gradually recovered, consumer demand that was suppressed last year has rebounded rapidly, and the PCB industry as a whole has ushered in rapid growth.
In the downstream industry, shipments of notebooks and mobile phones have soared. In 2020, global notebook shipments reached 200 million units, a year-on-year increase of 22.5%; in the first four months of this year, the total domestic mobile phone market shipments totaled 125 million units, a year-on-year increase，An increase of 38.4%.
The increase in shipments of downstream products drives PCB demand.
Following a 6.4% year-on-year growth in 2020, industry research organization Prismark raised the output value of the PCB industry in 2021 from its previous forecast to increase by 8.6% year-on-year to 14%. The total revenue of the top 40 PCB suppliers increased by 29% year-on-year to US$17.8 billion.
The agency believes that this year's market growth momentum mainly comes from stable market demand (telecommunications, consumer electronics, electric vehicles, etc.), technology upgrades and the restoration of the supply chain.
IIn terms of segmentation, 5G commercialization has become a new growth point for smartphones. The increase in 5G mobile phone shipments drives the demand for high-end PCB boards. At the same time, 5G construction will further expand server demand and promote server product upgrades. The server PCB market is expected to continue to expand.
Automotive PCBs are also expected to usher in continuous and rapid growth.
Pacific Securities believes that PCB has a variety of application scenarios in automobiles. Driven by the trend of electrification, intelligence, and weight reduction, even compared with traditional high-end fuel vehicles, the amount of PCB used in bicycles will increase significantly.
Shennan Circuits released an investor activity record form on June 4, and disclosed that the price of some raw materials has risen recently, and the company will strengthen communication and negotiation with suppliers and customers to jointly face the pressure of rising material prices.
Suntak Technology and Xingsen Technology stated on the interactive platform that they will adjust the price of PCB products based on fluctuations in raw material prices
The upstream raw materials of PCB have continued to rise from the end of 2020 to the present, and over-booking, grabbing production capacity, and grabbing raw materials are the norm.
Terminal demand remains high, and the problem of tight upstream raw material supply is also difficult to solve in the short term. Seeing that the traditional peak season for electronic products is coming, if the demand remains unchanged, it is not ruled out that the third quarter will continue to rise.
The basic material for PCB manufacturing is CCL (Copper Clad Laminate), and its upstream is mainly raw materials such as copper foil, fiberglass cloth, and epoxy resin.
The prices of various raw materials in the upstream of copper clad laminates have continued to rise since last year, and the prices of the industrial chain have risen across the board.
For example, copper prices continued to rise. The LME copper price broke through the $10,000 mark in May 2021. The price of electronic copper foil rebounded rapidly since the third quarter of last year. In January 2021, it reached a nearly four-year high.The price has risen by more than 50%.The prices of commonly used epoxy resins also began to rise from the third quarter of last year, and the price in January of this year exceeded the price high of 2018
一、Electronics demand rebounded
1.PCB rapid growth
PCB is the support of electronic components, and it is an indispensable part of various electronic products.
Since the global epidemic has gradually recovered, consumer demand that was suppressed last year has rebounded rapidly, and the PCB industry as a whole has ushered in rapid growth.
In the downstream industry, shipments of notebooks and mobile phones have soared. In 2020, global notebook shipments reached 200 million units, a year-on-year increase of 22.5%; in the first four months of this year, the total domestic mobile phone market shipments totaled 125 million units, a year-on-year increase，An increase of 38.4%.
The increase in shipments of downstream products drives PCB demand.
Following a 6.4% year-on-year growth in 2020, industry research organization Prismark raised the output value of the PCB industry in 2021 from its previous forecast to increase by 8.6% year-on-year to 14%. The total revenue of the top 40 PCB suppliers increased by 29% year-on-year to US$17.8 billion.
The agency believes that this year's market growth momentum mainly comes from stable market demand (telecommunications, consumer electronics, electric vehicles, etc.), technology upgrades and the restoration of the supply chain.
IIn terms of segmentation, 5G commercialization has become a new growth point for smartphones. The increase in 5G mobile phone shipments drives the demand for high-end PCB boards. At the same time, 5G construction will further expand server demand and promote server product upgrades. The server PCB market is expected to continue to expand.
Automotive PCBs are also expected to usher in continuous and rapid growth.
Pacific Securities believes that PCB has a variety of application scenarios in automobiles. Driven by the trend of electrification, intelligence, and weight reduction, even compared with traditional high-end fuel vehicles, the amount of PCB used in bicycles will increase significantly.
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