How Big Is The Potential Of The Soft Board Industry​

FPC has excellent performance, and the demand-driven growth exceeds the industry level. FPC has the advantages of high wiring density, small size, light and thin, consistent installation and connection, foldable bending, three-dimensional wiring, etc., which is in line with the trend of intelligent, portable, and light and thin in the downstream electronics industry.

Demand side: downstream applications are booming, opening up the FPCB market space in many fields. From the industry point of view, smartphones are the largest application field of FPCs, accounting for 29%. From the brand point of view, it is estimated that Apple is currently the largest demander of FPCs. The unit price of FPCs is higher than that of domestic mobile phones, and the corresponding manufacturers are profitable. more capable. From the application side, in the future, we judge that the future 5G + mobile phone innovation, VR/AR, IoT, and automotive electronics will have an upward trend in the corresponding industry, which is expected to open up the soft board market space + increase usage and value.

Supply side: The global FPCB market share is relatively concentrated. Domestic manufacturers mainly enter FPCB through acquisitions, presenting a pattern of two superpowers + many small ones. In addition, domestic manufacturers are actively expanding production and undertaking overseas FPCB manufacturers to withdraw from the market. The global FPCB market is highly concentrated, with CR3=58% in 2018. Domestic FPCB manufacturers mainly include: listed companies Pengding Holdings, Hongxin Electronics, Jingwang Electronics, Chongda Technology, etc., Hong Kong-listed company Anjieli, non-listed companies Jingchengda, Shangda Electronics, Zhuhai Zixiang Electronics, Dingying Electronics, Ganzhou Shenlian Circuit, etc., present a situation of two super + many small; from the perspective of output value changes, Chinese manufacturers in 2015-18 due to their active expansion of production + customers Affected by factors such as the increase in the end market share + the transfer of external PCB industry, the output value shows a relatively high growth rate. Due to the focus on application areas with higher profit margins + weak willingness to expand production + production capacity withdrawal, the average output value of Japanese and Korean manufacturers has decreased. , In the future, domestic manufacturers will expand production in an orderly manner, and continue to undertake overseas FPC manufacturers to withdraw from the market.

There is a lot of room for localization of soft board raw materials, and PTFE is expected to become the trend of soft board substrates. The soft board industry chain includes upstream raw material suppliers: copper foil substrate CCL, cover film CVL, reinforcing sheet, glue, electromagnetic shielding film, as well as SMT process providers and equipment supplies such as laser drilling machines, electroplating machines and exposure machines Manufacturers (the ability of SMT to make parts has a greater impact on the profitability of manufacturers), midstream soft board manufacturers, and downstream manufacturers of electronic product module parts and terminal electronic products. At present, the raw materials of FCCL, copper foil and electromagnetic shielding film are mainly monopolized by Japanese and Korean manufacturers, and there is a large space for localization.