Chinese PCB enterprises have gained growth opportunities by relying on cost advantages

Chinese PCB enterprises have gained growth opportunities by relying on cost advantages in the early stage. Chinese enterprises have low labor costs, land costs and manufacturing costs. In the early stage of industrial development, they relied on price advantages to enter the low-end PCB market, established a large number of small and medium-sized enterprises, and attracted enterprises from Japan, Taiwan, Europe and the United States to invest and build factories in China.

With the development of the industry, Chinese PCB domestic enterprises gradually accumulate their own capital, talents and technical resources through self-development or joint venture construction, build their own industrial moat, and continue to grow. In terms of technology, continuously increase investment in research and development and accumulate high-end PCB technology; In terms of production capacity, continue to invest and build factories to form scale advantages; In the industrial chain, gradually improve the upstream raw material channel and application market, and form a complete upstream and downstream industrial chain system.

The rise of downstream local brands has driven the process of PCB localization. PCB is closely related to the development of the electronics industry. At present, many enterprises in China have developed into the leader of segmentation, such as Huawei, ZTE, Haikang, Lenovo and other excellent enterprises. These local enterprises have both the demand to reduce the cost of raw materials and the demand for suppliers to be close to the place of production. With the increase of the market share of downstream local enterprises in the international market, the raw materials and manufacturing industries in the upstream of the industrial chain have gradually risen, and the localization process of Chinese PCB enterprises has also accelerated.