As the Matthew effect of PCB intensifies, Xusheng Electronics leads the new trend of 5G development by relying on its scale advantage

       Xusheng Electronics leads the new trend of 5G development by relying on its scale advantage

　　At present, PCB industry has a broad development prospect, has become a global industry, the annual output value of more than 50 billion US dollars.

　　In the next 5 years, the global PCB market will maintain moderate growth, and the PCB industry will become the basic force connecting the preceding and the following in the entire electronic industry chain. The global PCB market is expected to reach $68.8 billion by 2022, with a CAGR of about 4%.

　　5G has become the biggest new engine of growth in the PCB industry

　　PCB has a very clear industrial chain structure, upstream for raw materials; The downstream application areas mainly focus on computer, communication, consumer electronics, automotive electronics etc,four fields, accounting for nearly 70% of the downstream application areas.

　　At present, the PCB industry has entered the mature period, the traditional application market has been saturated, its growth depends on the emerging segment of the downstream. Automobiles and communications equipment will take over from consumer electronics as the new engines of industry growth over the next 5 years.

　　Most notably, with the once-in-a-decade intergenerational upgrade, 5G communications will drive both the demand and the added value of PCB/ copper clad panels. It can be said that 5G communication equipment will be the core driving force of PCB industry in the next 3 years, becoming the largest new engine of PCB industry growth.

　　The Mathai effect of PCB industry chain intensifies

　　On the basis of the continuous and stable growth of PCB industry, the "Matthew effect" of the industry is becoming more and more obvious.

　　In recent decades, PCB has experienced the trend of global capacity transfer, from Europe and the United States to Japan and then to Taiwan, and is now concentrated in the Chinese mainland. The trend of "production moving east" is driven on the one hand by the cost considerations of overseas giants and on the other by the stringent environmental policies of developed regions.

　　Distribution comparison of global output value of PCB industry in 2008 and 2017

　　(Data source: compilation of public data)

　　In China, PCB industry also presents a similar Matthew effect, "the stronger the strong, the weaker the weak".

　　1. Rising raw materials lead to higher costs

　　As of July 2018, copper foil prices are up about 20% from the beginning of 2017 and epoxy resin prices are up about 44% from the beginning of 2017. With the price rise of the base material, the price of the core PCB raw material copper-clad plate is also in line with the trend, with an average annual price rise of 10%~20%, resulting in a sharp rise in the cost of PCB raw materials,PCB factories of small and medium-sized enterprises are facing greater cost pressure.

　　2. High pressure policy on environmental protection

　　Local governments strictly implemented pollutant discharge targets to control the total amount of pollution. In 2018, environmental protection taxes were formally implemented, and environmental protection policies became stricter. Influenced by environmental protection policies, many PCB manufacturers in China have been forced to limit production and stop production. A large number of PCB industry related manufacturers have been forced to close their factories due to the lack of emission targets.

　　With the soaring price of PCB raw materials and the high pressure of environmental protection policies, large PCB manufacturers continue to develop, expand production capacity and seize market share by relying on their own advantages, while small manufacturers are in trouble or even eliminated, which leads to the further improvement of the concentration of domestic PCB industry.

　　Xusheng Electronics leads the new trend of 5G development by relying on its scale advantage

　　In the fierce market competition, by virtue of the global leading advantage in the industry scale, Xusheng Electronics adheres to innovation, improves the technical level, and constantly accumulation and expansion of competitive advantages. It is committed to becoming the leader in the circuit design of 5G industry through independent research and development.

　　Xusheng electronics Co., Ltd., with about 3,000 employees, is a joint-stock private enterprise, established in 2017 with a total investment of 2 billion yuan.

　　Company is located in Jiangxi Province Chengxi Industrial Park, Jishui County, Ji 'an City. The first phase of the company covers an area of 267 thousand ㎡, building area of 320 thousand square meters, owns four plants, issue of article 16 of the production of the 460 metre long production lines. With the world advanced PCB dedicated production lines, independent research and development design of special equipment and production process flow, annual production capacity of nearly 13.5 million square meters, become a handful of industry scale PCB manufacturer.

　　With large output, high technology and concentrated production, Xusheng Electronics will gradually become the backbone enterprise of PCB production. With the development of downstream application of 5G communication in PCB, Xusheng Electronics will also play a leading role in the future development of the industry and lead the new trend of 5G development by relying on its scale and capacity advantages