The movement of industries toward the east has become one of the most significant trends in mainland China. The global center of gravity for the PCB industry continues to shift toward Asia, with production capacity gradually moving into the mainland, reshaping the industry's structure. As this transfer progresses, China has solidified its position as the world’s largest PCB producer. According to Prismark, in 2017, China's PCB output value reached $28.972 billion, making up more than half of the global total.
With the rise of data centers, demand for HDI boards is expected to grow significantly. Data centers are evolving to meet higher speed, larger capacity, and cloud computing demands, which increases the need for high-density interconnect (HDI) technology. Additionally, the popularity of mobile electronics like smartphones is boosting the demand for flexible printed circuits (FPCs). Their lightweight, thin, and bendable characteristics make them ideal for modern smart devices. FPCs are increasingly used in display modules, touch panels, fingerprint sensors, side keys, and power buttons, driving further growth in the sector.
Rising raw material costs combined with stricter environmental regulations have intensified competition within the PCB industry. Prices for copper foil, epoxy resin, and inks have pushed up manufacturing costs, while government-led environmental inspections have forced small-scale manufacturers to comply or shut down. This has led to a consolidation phase, where smaller companies struggle to survive due to narrowed profit margins. In contrast, leading firms with advanced technology and strong financial backing are expanding through production capacity growth, mergers, and product innovation. These companies benefit from efficient processes and better cost control, positioning themselves to thrive in a more concentrated and healthier industry.
New applications are also fueling growth, especially with the arrival of the 5G era. 5G base stations will require a large number of high-frequency circuit boards—far exceeding the millions needed in the 4G era. These high-speed, high-frequency boards come with greater technical challenges and offer higher profit margins compared to traditional PCBs.
Moreover, the growing trend of automotive electronics is driving rapid expansion in automotive PCBs. As vehicles become more electronic, the demand for PCBs in cars is increasing. New energy vehicles, in particular, rely heavily on electronics, with electronic components accounting for up to 65% of their cost, compared to about 25% in traditional vehicles. Battery management systems (BMS) and high-frequency PCBs used in millimeter-wave radar are becoming key drivers of growth in this sector.
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