Why Chinese PCB/FPC Enterprises Are Competitive
Sep 19, 2022
At present, the main global printed circuit board (PCB) players include Zhending (and its wholly-owned subsidiary Pengding Holdings), Xinxing Group, Dongshan Precision, Nippon Mektron, a major FPC manufacturer under NOK, Japan, Huatong, Jianding, TTM Schindler Technology, etc. According to the revenue of each company in 2021, Japan's Qisheng, Pengding Holdings and Dongshan Precision ranked the top three in terms of market share, with a market share of more than 5.5%; followed by Xinxing Group, Ibiden, and TTM Schindler Technology , the market share is above 2.5%. On the whole, the distribution of global PCB industry participants is relatively scattered, and the competition is very fierce.
Global market players are highly competitive
In terms of concentration, in 2021, the CR3 concentration of the global printed circuit board (PCB) industry will exceed 15%, the CR5 concentration will be about 25%, and the CR10 concentration will be close to 40%. On the whole, the overall concentration of the global PCB market is low, the number of companies in the market is large and the competition is very fierce, and the head scale effect is not obvious.
According to CINNO Research data, from 2016 to 2021, the top 100 global PCB companies are mainly concentrated in Asia, such as mainland China, Taiwan, Japan, and South Korea. The overall revenue of the companies listed in the above regions fluctuates around 90% every year. To a certain extent, it can be explained that the focus of the global printed circuit board market has shifted to Asia.
The market share of Chinese companies on the list in 2021 is about 63%, an increase of about 2.7 percentage points from the previous year, showing a growth trend. Among them, the market size of the listed companies in mainland China accounted for nearly 30%, an increase of about 2 percentage points from the previous year; while the market size of the listed companies in Taiwan, China accounted for nearly 35%, an increase of 0.7% year-on-year; in addition, Japan, The market share of South Korean companies on the list is about 18% and 12%, respectively.
On the whole, the overall revenue of Chinese companies on the list is the largest, and the total scale of Chinese companies belonging to the top 100 companies has increased in the proportion of the total scale of the top 100 companies. Has become the global PCB industry center.
According to CINNO Research data, there are 62 Chinese companies on the list in 2021, accounting for more than 60% of the top 100 companies. Chinese companies occupy an important position in the global PCB industry. Among them, the number of enterprises in mainland China accounted for nearly 40%, the number of enterprises in Taiwan, China accounted for more than 20%; the number of Japanese enterprises accounted for about 20% of the total; South Korean enterprises accounted for about 10% of the total; the total proportion of enterprises in other countries and regions was not more than 10%.
Therefore, Chinese enterprises have outstanding performance in the global printed circuit board industry, and their competitive strength has been affirmed by the global PCB market.
According to Prismark's information, Chinese companies in the top 20 global PCB manufacturers in 2021 will occupy a larger share, of which 9 are Taiwanese companies (Zhending, Xinsen Group, Huatong, Jianding, HannStar, Nanya Circuit Board, Hushi, Jingshuo, Taijun), 3 in mainland China (Dongshan Precision, Shennan Circuit, Jingwang Electronics).
From the perspective of output value, Taiwan Zhending has the largest output value, exceeding 5.5 billion US dollars; followed by Taiwan Xinsen Group, China, with an output value of nearly 4 billion US dollars; Mainland China Dongshan Precision has an output value of more than 3 billion US dollars. The output value of the top 20 PCB manufacturers in the world is above 1.2 billion US dollars. Therefore, the global PCB industry is currently developing well.
On the whole, Chinese local PCB manufacturers account for about 60% of the top 20 PCB companies in the world, and more than half of the output value comes from mainland China and Taiwan. Therefore, China's local PCB industry is booming and local companies are more competitive.
