In the context of globalization, the division of labor in the internationalization of the industrial chain is becoming more and more clear. With the advantages of labor and capital, China has gradually occupied the dominant position in the low-end links of the industrial chain. Printed circuit board (PCB) industry is the upstream of almost all electronic consumer goods, whether it is mobile phone, computer, flat panel, display screen and so on, circuit board will be used.

China is the largest PCB producer in the world, but its enterprise scale is smaller than that of Japan and South Korea, and its industry concentration is lower.

The production of low-end PCB products in China's PCB enterprises is relatively mature, and the R & D and manufacturing of high-end PCB products are in the initial stage with insufficient competitiveness. Foreign and Taiwan funded enterprises occupy a considerable part of the market, squeezing the living space of local enterprises. This is also due to the small number of local enterprises with sufficient strength, which needs further R & D investment.

Jieduobang, a global PCB proofing service provider, has learned that the upstream materials of PCB enterprises, such as copper foil, are in short supply due to limited raw materials and complex processing technology. It has strong bargaining power on the midstream, and the PCB industry is facing greater price pressure. The upstream high-end technologies and products are monopolized by foreign giants, with high import dependence, and the competitiveness of domestic enterprises is insufficient. The industry is striving to expand its competitiveness At the same time, the bargaining power of PCB industry to the downstream is general, which is affected by the change of downstream demand.

According to jieduobang's analysis, from the perspective of industrial development, high-end products such as packaging substrate and medium and high-end products such as HDI board will become an important direction. In 2016, with the global PCB industry declining, China's PCB industry continued to grow at a rate of 1.43% and developed steadily. India, Thailand and other South and Southeast Asian countries also show their huge development space with high-speed growth. When China's labor, land and other costs rise, a large number of foreign enterprises will transfer from China to these countries.

Therefore: on the one hand, jieduobang is optimistic that China will continue to play the role of a big country in PCB industry; on the other hand, jieduobang believes that in the future market competition of China's PCB industry, there will be features such as high-end products, large-scale enterprises, extension of industrial chain, and uniform geographical distribution. Chinese enterprises will gradually gain advantages by optimizing the concept and realizing advanced technology upgrading, so as to win in the market Besides being a big country in output value, it will become a real electronic power. Based on this, from the perspective of industrial chain, we recommend PCB enterprises with R & D strength and advanced technology, and suggest focusing on Shennan circuit, Jingwang electronics, Shengyi technology, Shenghong technology, etc.

In addition, we can focus on some upstream segments. Although the current high-end products are highly dependent on imports, the listed companies that are expected to make breakthroughs in technology in the future can also be concerned. Fiberglass cloth enterprises: Sinoma technology, Changhai Co., Ltd., China Jushi, Jiuding new material, Huajian group. Synthetic resin: Hongchang electronics, Puyang Huicheng. Copper foil: Tongling Nonferrous Metals Co., Ltd. CCL: Jin'an Guoji, Shenghong technology, Tongling Nonferrous Metals Co., Ltd., Nord Co., Ltd. Risk tips: the company's production capacity does not meet expectations; new technology substitution risk; market systemic risk.