According to the news of Weibo, it has survived the difficulties of the domestic epidemic, and the global outbreak is "out of control". For the domestic PCB industry that is gradually returning to production, the export business is experiencing a dark moment.

 

As we all know, PCB, as a basic industry in the manufacture of electronic information products, was originally greatly affected by fluctuations in the macroeconomic cycle; this time, due to the emergency of overseas epidemics, the global PCB output value may be affected in the short term.

 

In particular, China, as a country with more than 50% of the global PCB output value, is not a small number of PCB manufacturers that mainly export. Based on the closure of many countries overseas, domestic PCB manufacturers are also facing problems such as loss of orders and delivery delays. Accelerate the development of the domestic market.

 

Export business encounters cut orders

 

Prismark predicts that the compound annual growth rate of global PCB output value from 2019 to 2024 will be about 4.3%; the output value of PCB industry in 2020 is expected to increase by 2.0%.

 

At present, the global printed circuit board manufacturing enterprises are mainly distributed in mainland China, Taiwan, Japan, South Korea, the United States, Europe and Southeast Asia. Among them, China's PCB output value accounts for more than 50%, and the trend of global production capacity continues to shift to China is obvious.

With the increasing proportion of China's PCB output value in the world, the PCB industry in mainland China has entered a stage of sustained and stable growth, and a PCB industry gathering belt has been formed with the Pearl River Delta region and the Yangtze River Delta region as the core region. In addition, while the output value of the PCB industry continues to grow, a large number of PCB manufacturers that mainly export business have also emerged.

 

According to the incomplete statistics of the micro-grid, many PCB listed companies, such as Ultrasonic Electronics, Jingwang Electronics, Chongda Technology, Zhongjing Electronics, Yangming Circuit, and World Games Circuit, account for a large proportion of exports. Among them, the export business of ultrasonic electronics accounts for 60%, the main export areas are the United States, Germany, Japan, Australia and other places; the export business of Chongda Technology accounts for about 70%, the main export areas are the Americas, Europe, Japan and other places; Yangming The proportion of circuit export business exceeds 90%, and the main export areas are Europe, America and Southeast Asia.

 

However, in view of the global outbreak, at least 41 countries have entered a state of emergency. At present, Europe, the Americas and other places are all affected by the epidemic. Italy, Spain, Germany, the United States and other places have tens of thousands of confirmed people, and new diagnoses are added every day. The number of people is also rising sharply.

 

In this situation, the measures of sealing cities and countries in many places have been launched one after another. For PCB manufacturers that mainly export business, it can be described as a "catastrophe". After the domestic epidemic raged for more than a month, the manufacturers that gradually stabilized and resumed production were working overtime to complete orders. However, the outbreak of foreign epidemics, limited logistics, delayed order delivery and other situations are frequent, and there are even unfinished orders that directly encounter overseas customers cutting orders or canceling orders.

 

Recently, a PCB manufacturer disclosed to Jiwei Net: "At present, the company has received an emergency notice and cut a quarter of the order, and there may be no order to be made next month." In addition, some industry insiders also said: "For many export areas For manufacturers in Europe and the United States and other places, if the worldwide epidemic cannot be effectively controlled in the short term, the order status will be unsatisfactory. In addition to the impact of shipping and logistics, if the delivery cannot be delivered in time, the order may be cancelled. "

 

"From the perspective of the current global epidemic situation, manufacturers with a larger export share in China's manufacturing industry will continue to be under pressure for at least 3 months." Industry analysts said that in this case, most PCB manufacturers' response strategy is to accelerate Open up the domestic market.

Accelerate the development of the domestic market

 

As the domestic epidemic situation is basically improving, the state requires accelerated new infrastructure construction at the policy level, coupled with the strong demand for 5G commercial, cloud computing, artificial intelligence, Internet of Things, intelligent terminals, etc., which has led to high-end PCB products The demand for high-frequency PCBs, HDI of any layer, SLP, etc. has increased.

 

For domestic PCB manufacturers, the layout in the field of high-end PCBs will inevitably usher in opportunities; but for the PCB manufacturers mentioned above that are mainly export-oriented, it cannot be generalized.

 

Especially in the HDI market, among the mainland manufacturers, only ultrasonic electronics, Founder Technology, Dongshan Precision Subsidiary, Jingwang Electronics, Zhongjing Electronics, Shenghong Technology, Xingsen Technology, etc., with mass production of Tier 3 and above are currently available. Among them, ultrasonic electronics, Zhongjing Electronics and other financial reports for the first half of 2019 show that the proportion of these two export revenues is significantly higher than the proportion of domestic sales. The export revenue of ultrasonic electronics increased by 11.5%; the export revenue of Zhongjing Electronics increased by 54.23%, etc.

 

Therefore, Ultrasonic Electronics has stated on the interactive platform that the company's exports account for 60%, mainly in the United States, Germany, Japan, Australia and other places. Based on the continuation of foreign epidemics, it will adversely affect the supply and demand of the industrial chain and logistics delivery to a certain extent.

 

Zhongjing Electronics stated on the interactive platform that due to the epidemic situation, the company's production and operation in the first quarter will be affected to some extent. At the same time, Zhongjing Electronics raised funds to build a new PCB factory in Zhuhai, focusing on the development of multiple emerging categories of products related to 5G communications and expanding the domestic market. Jingwang Electronics also said that based on the instability of the overseas epidemic situation, the company has been making efforts to expand the domestic market, investing in the construction of high-end HDI projects with an annual output of 600,000 square meters, increasing the proportion of high value-added products and enhancing core competitiveness. In contrast, Chongda's annual report for the first half of 2019 showed that its domestic sales revenue increased by 28%, while exports decreased by 2%. At the same time, benefiting from ZTE's 5G base station motherboard PCB orders, it will have a substantial blessing on domestic sales performance.

 

Industry insiders said: 5G commercial, automotive electronics and other markets do have a lot of new demand, but there are also many manufacturers that have expanded their production layout since last year. Based on the customer system of the industry chain, the original export manufacturers turned to domestic sales to tap new Customers, etc., are not easy, and there are still many difficulties to overcome.

 

Looking at the overall situation, under the continuous impact of the epidemic, fluctuations in the overseas market will have an inevitable impact on domestic export-oriented PCB manufacturers. Based on the changes in the international trade environment, the PCB industry is still subject to the big test. Small and medium-sized PCB manufacturers that were originally affected by the capital chain break and the high pressure of environmental protection are also accelerating the shuffle. (Proofreading / GY)

Source: JiWei