© PCB | October 05, 2012

Report: PCB industry in China increasing 11.4% annually

Over the five years through 2012, revenue for the Printed Circuit Board Manufacturing industry in China has been increasing at an average annualized rate of 11.4% to total 54.8 billion USD, says IBISWorld.
As printed circuit boards are an intermediate product, the majority of industry revenue is derived from sales to downstream wireless and consumer electronic manufacturing industries. Growing household income in China has led to increasing demand for electronic products, boosting demand for printed circuit boards.

The industry has a low-to-moderate market share concentration level with several mid-sized enterprises and a large number of smaller firms operating in the industry. The industry's top four companies, Flextronics, Celestica, Tripod Technology, and United Microelectronics Corporation, are expected to generate over a quarter of industry revenue.

The acquisition of Solectron by Flextronics in 2007 significantly increased concentration levels within the industry. As the Printed Circuit Board Manufacturing industry in China enters the mature stage of its life cycle and growth slows down, mergers and acquisitions will become more common, increasing industry concentration and competition.

Despite product and technology advances and an improved industry product mix, high industry competition and new government regulations will continue to put downward pressure on product prices. Intense competition and product saturation across low-end markets will result in research and development becoming increasingly important for industry players, says IBISWorld. Also, new regulations and standards will lead to a short period of adaptation in the industry.


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