PCB Industry Will Continue to Transfer to China Mainland
PCB Industry in China
At present, there are about 2,500 PCB manufacturers in the China mainland, PCB industry in china is mainly distributed in the Pearl River Delta, the Yangtze River Delta, and the Bohai Rim, where there centralize the large component markets, good transportation conditions, and water and electricity conditions.
Why the PCB industry will continue to transfer to China mainland?
1.Lower overall cost and higher management efficiency
First, although China's demographic dividend is coming to an end, the labor cost is still lower than that of Japan, South Korea, Taiwan, and even lower than that of Europe and the United States.
Second, China's environmental protection, trade unions, and welfare sectors are relatively low in cost.
Finally, in the case of more market competition, the leaders in China PCB industry are exploring the much better management models. After the listing, the management and core employees share the shareholding ratio far beyond overseas counterparts.
2. Sound upstream and downstream industry chain and ambitious government
As the world's largest manufacturing country, China PCB industry has a complete industrial chain from copper foil, glass fiber, resin, copper-clad laminates, and finally PCBs. PCB is close to the final products, a great number of electronics also get finished in China.
Surely, the government has also seen this and has introduced a series of policies to support it. Especially in recent years, after the release of "Made in China 2025", it put forward higher requirements for the PCB industry and promoted the development of the whole industry to the high-end.
What are China PCB industry trends?
HDI means high density interconnect, these boards have high trace distribution density, which are mainly required by the smaller and smaller products. Blind/buried vias are one of the key technologies in HDI PCBs manufacturing. For a few PCB factories in China like PS Electronics, now are able to finish the builds of 3+N+3 with "any layer via".
What means the PCB with a copper thickness (out/inner) over 3oz, this type of PCBs is mainly used in high power products, like high voltage power suppliers, some automotive accessories. Some suppliers promise over 20oz in their capacity but not trustable, we promise a thick copper PCB' capacity of 20oz because we had ever got such projects finished.
Mainly used in high-frequency communication areas, such as Aerospace, detection, IoT (which is frequently mentioned in recent years), etc. High-frequency PCB requires high-frequency copper-clad laminates, like Rogers, Arlon, PTFE...
Flex and rigid-flex PCBs are rapidly growing thanks to the development of smartphone and high-end digitals. Chinese PCB manufacturers are now exploring the more options of flex materials, as an expectation, the amount of flex PCBs will share about 30% of Chinese PCB market in 2020.
Although China Mainland PCB manufacturing industry is facing their best opportunity, which is also the challenge for Chinese manufacturers. Now Competition driven by the globalization of the component supply chain is placing more pressure on PCB manufacturers. In such a market, the manufacturers must streamline, control costs, and operate efficiently to meet increasing requirements.
The Chinese manufacturers should do more than ever
Such as automating recurring tasks in the purchase order and rfq process. This automation results in greater efficiency, faster process cycles, fewer errors, and better management of time.
Electronics manufacturers can use historical process data, and through advanced data, analytics identify new patterns and relationships to improve processes, yield, and even logistics along the supply chain of PCB industry.
Build Strategic Partnerships
Exploring the benefits of gaining a technology partner to help automate regular business processes to control costs, reduce errors, improve speed and efficiency, and better direct employee resources to higher-level activities. Automation solutions are readily available for business processes including purchase orders, RFP, RFQ, and data interchange activities.
Focusing on Logistics
An efficient supply chain has a direct impact on sales performance and a company’s bottom line. Maximizing efficiencies along the supply chain can not only help you to control costs, but it also allows you to strengthen relationships with suppliers and with customers, and improve speed and reliability of deliveries while reducing errors and overall complexity of the supply chain.