Edy Yu, the Chairman of CPCA, said in the CPCA Show about the changes of mainland China over the past decade: China’s total GDP was only 31 trillion renminbi when the financial crisis broke out in 2008, and the main application industries were 2G function mobile phones and PCs. By 2018, however, China’s total GDP exceeded 90 trillion renminbi, with the main application industries dominated by smart terminals and 4G networks, which are popular throughout the world. Looking back at the industry development over the past decade, we should ponder the road ahead in the coming decade.

The several important changes over the past decade are as follows:
The compound growth rate has reached 2.6% in 10 years: In 2008, the global PCB production value was US$48.3 billion, and in 2018, the output value was estimated to exceed US$60 billion. This is a compound growth rate of 2.6% over the ten years. The industry cycle has two significant characteristics: small cycle fluctuations, and substantial cycle growth. The upward cycle interval has, in recent years, gradually shortened to a five-year cycle.
Market: The market focus is still on 3C, but the computer market has fallen sharply.

Better improved industry concentration: In 2018, the top ten enterprises in the world accounted for 33.2% of the global production capacity, an increase of 5.5% compared with 2008. In the past decade, the gap between the top ten output values has further been widened.

The top ten new companies have entered the top 40 in the world: Five of these come from large local Chinese companies such as SCC, Kinwong, Suntak, Fastprint, Victory Giant, etc. They account for 50% output value of the overall top 40 top. The enterprise’s individualized development has brought in core competitiveness.

The PCB industry’s rapid growth has driven CCL industry development: The rapid development of PCB in China has boosted the development of CCL industry. Although the compound growth rate of CCL in the past decade has reached 8.4%, the import of materials is still higher than that of exports. As high-end materials still rely on imports, so the development of localized materials is still arduous.

PCB equipment has also achieved significant growth: The compound growth rate of equipment reached 13.4%. In 2017. The investment amount of equipment accounted for 12.3% of the PCB output value for the year.

Since 2014, China’s PCB industry has changed from import-oriented to export-oriented: In the most recent 10 years, the export value has accounted for more than 20% of the global PCB production value, and last year’s exports reached US$15.28 billion.

Capital route: To pursue the long-term value of enterprises in the past decade, a total of 35 companies in the mainland PCB industry are listed on the A-share market. Two of them are from Taiwan-funded enterprises. Financing has made the ecology of the Chinese mainland industry more dynamic and competitive.

Enterprises attach great importance to R&D and enhanced technological energy: For example, product technology is continually moving towards high density, high integration, high frequency, and high speed.

Intelligentization: Production in this decade has gradually improved from traditional, manual production to automated production. Although automated production is confined to automated production lines, to enhance the operational capabilities, production still needs to move towards smart manufacturing. 

Growing environmental awareness: China’s PCB industry is gradually raising environmental protection consciousness
Can China replicate the past development model in shaping the next golden decade? The Chairman raised several uncertainties, especially when the PCB growth rate is basically synchronized with the global economy, thus mounting the slowed PCB growth rate during the economic recession. There is a risk of overcapacity when the number of PCB companies increases and the capacity expansion accelerates. So, it is a big challenge to convert production capacity into sales and avoid the competition of product homogenization with the market and reduced-price competition. The industry is changing rapidly, for example, smart terminals are moving towards flexible folding models, and mobile phone cameras are replacing digital cameras. Also, there is the problem of labor force population conversion. Thus, the development of the PCB industry needs to properly handle the relationship with the various stakeholders and find a dynamic balance point. In addition, following the further development and optimization of the industry structure, industrial resources will be more concentrated and the entry threshold will continue to increase.

Finally, the Chairman mentioned five major strategies: 
Strategy 1: Personalization: Adhere to differentiated development strategies, embody the corporate characteristics, create unique products, make breakthrough innovations, and avoid price competition. 
Strategy 2: Smart factories: Following an increase in labor costs and raw materials, enterprises must optimize their cost management and improve production efficiency through the establishment of smart factories. 
Strategy 3: Manufacturing to creation: Following a change in the requirements of terminal electronic products, the technology of PCB products needs to be continuously innovated. Currently, the investment in R&D in PCB enterprises accounts for only 3%~5%. It needs to be further improved. Enterprises can enhance industry-academia collaboration to improve the talent training system. 
Countermeasure 4: Strengthen social responsibility: PCB enterprises must strengthen environmental awareness, create safety awareness and lawful operation.
Countermeasure 5: Association platform: To promote and improve the localization of the industrial chain, the roles of the association platform should be integrated with local governments to encourage foreign investment to develop in mainland China and support local enterprises to grow bigger and stronger.

The Chairman also hopes that the PCB industry will give people a sense of gain, happiness, and security. Our short-term goal is to work hard to ensure our employees’ happiness and prosperity, and our long-term goal is to enhance innovation and creativity. Looking back over the past golden decade, China’s electronic circuit industry has advanced in leaps and bounds. Anticipating the next decade, we will work together to create the next golden decade with the mission of promoting high-quality industrial development. (News source: TPCA on-site consolidation report)