+Table of Contents
1. PCB industry description
2. Why can’t the pcb electrical industry form a monopoly
3. The future incremental market of the pcb electrical industry
1. PCB industry description
A. PCB Copper clad laminate: it is the base material of the circuit board. The copper clad laminate is composed of glass fiber cloth (glass filament woven), resin, and copper foil.
B.The upstream of the copper clad laminate is copper foil, glass fiber, and resin, and the downstream is the circuit board enterprise.
Copper foil: The downstream of copper foil was almost always used for copper clad laminates. In recent years, new energy vehicles have developed greatly. However, the negative electrode of lithium batteries uses copper foil (graphite is bonded to the copper foil to become the negative electrode), so the downstream demand for copper foil is expanding At the same time, the copper foil production process for lithium batteries is simple, resulting in a higher gross profit margin of lithium battery copper foil than copper clad laminates. Therefore, many copper foil enterprises have transformed their production lines to lithium battery copper foil; coupled with copper price increases; and copper production Foil equipment is imported, and it takes nearly 2 years to expand production after copper foil is in short supply. The superposition of these factors caused the supply of copper foil to exceed supply in mid-2016, which opened the prelude to the price increase of PCB copper clad laminates.
Glass fiber: The fiberglass industry is a monopolistic industry. The world’s top 6 monopolizes 70% of the market, and China Jushi (SH600176) accounts for 21% of the world. Because of the supply-side reform, the price of fiberglass cloth has risen. Jushi’s stock price has increased. Double year
C. Copper clad laminates are also a monopolistic industry, with the world’s top 10 copper clad laminate manufacturers accounting for 73.5%. In comparison, the world’s top ten PCB manufacturers have a market share of 32.21%.
D. Looking at the copper clad laminate industry chain, the upstream fiberglass and copper foil are monopolized. Naturally, if the price rises, the price will increase. I am not afraid that you will not use it in the downstream. The copper clad laminate industry is also monopolized. Naturally, the price of raw materials will rise accordingly. The downstream is not needed. When it comes to the circuit board, it is finished. It is a non-monopoly industry, and many downstream customers of the circuit board are large companies like Huawei ZTE Lenovo (products using circuit boards are also monopolized in large industries). Therefore, the PCB electrical industry is relatively bitter in this industry chain. The upstream PCB copper clad laminate prices increase but they dare not easily increase the downstream prices. Therefore, we can see that the industry has held meetings in the past two years, and the circuit board industry always complains.
Table of Contents
1. PCB industry description
2. Why can’t the pcb electrical industry form a monopoly
3. The future incremental market of the pcb electrical industry
1. PCB industry description
A. PCB Copper clad laminate: it is the base material of the circuit board. The copper clad laminate is composed of glass fiber cloth (glass filament woven), resin, and copper foil.
B.The upstream of the copper clad laminate is copper foil, glass fiber, and resin, and the downstream is the circuit board enterprise.
Copper foil: The downstream of copper foil was almost always used for copper clad laminates. In recent years, new energy vehicles have developed greatly. However, the negative electrode of lithium batteries uses copper foil (graphite is bonded to the copper foil to become the negative electrode), so the downstream demand for copper foil is expanding At the same time, the copper foil production process for lithium batteries is simple, resulting in a higher gross profit margin of lithium battery copper foil than copper clad laminates. Therefore, many copper foil enterprises have transformed their production lines to lithium battery copper foil; coupled with copper price increases; and copper production Foil equipment is imported, and it takes nearly 2 years to expand production after copper foil is in short supply. The superposition of these factors caused the supply of copper foil to exceed supply in mid-2016, which opened the prelude to the price increase of PCB copper clad laminates.
Glass fiber: The fiberglass industry is a monopolistic industry. The world’s top 6 monopolizes 70% of the market, and China Jushi (SH600176) accounts for 21% of the world. Because of the supply-side reform, the price of fiberglass cloth has risen. Jushi’s stock price has increased. Double year
C. Copper clad laminates are also a monopolistic industry, with the world’s top 10 copper clad laminate manufacturers accounting for 73.5%. In comparison, the world’s top ten PCB manufacturers have a market share of 32.21%.
D. Looking at the copper clad laminate industry chain, the upstream fiberglass and copper foil are monopolized. Naturally, if the price rises, the price will increase. I am not afraid that you will not use it in the downstream. The copper clad laminate industry is also monopolized. Naturally, the price of raw materials will rise accordingly. The downstream is not needed. When it comes to the circuit board, it is finished. It is a non-monopoly industry, and many downstream customers of the circuit board are large companies like Huawei ZTE Lenovo (products using circuit boards are also monopolized in large industries). Therefore, the PCB electrical industry is relatively bitter in this industry chain. The upstream PCB copper clad laminate prices increase but they dare not easily increase the downstream prices. Therefore, we can see that the industry has held meetings in the past two years, and the circuit board industry always complains.
