The world’s second-largest copper foil substrate (CCL) plant, Continental Biotech, has risen 5% for different materials since September, opening the first shot of the key parts price increase in the electronics industry.
CCL is a key raw material for printed circuit boards (PCBs), and can not be replaced by other materials. Leading the price increase, revealing strong market demand, Taiwan CCL Sanxiongtai Optoelectronics, Lianmao, Taiwan Yaowang season effect can be expected, and affect the PCB market conditions.
This year, the global electronics industry is very cautious in pulling goods. The key components such as panels, memory, and semiconductor silicon wafers that were sought after last year have not been popular, and prices have been adjusted back. It is understood that the price increase of Shengyi is mainly due to the fact that China’s 5G infrastructure has driven Netcom’s demand for CCL, which is the key component of the recent price increase in the electronics industry. The industry confirmed that Shengyi will increase its price in South China in September. The first wave is for the second-tier land-based PCB factory. The East China region is also planning to increase the price for some customers. This shows that in response to strong market demand, the company began to “sell and ship”. If the company is not big enough, it must increase the price to take the materials, so as to focus on serving long-term cooperation and reduce the risk of collection.
Taiwan CCL plant pays close attention to market price dynamics. Taiwan Optoelectronics revealed that the demand for the traditional peak season is indeed good; Lianmao said that the scale of the products in the middle and high-end products is gradually improving, and the orders in the whole industry are very good this year.
The industry pointed out that Jianye and Shengyi are the world’s top two CCL manufacturers, while Taiwan’s South Asia shipments rank third. Jianye’s output value in 2017 is still the highest in the world, but from the 2018 performance, the gap between Jianye and Shengyi has already converged by about 1 percentage point.
According to professional organization Prismark, by the end of 2017, Jianye CCL has a global market share of 14%, Shengyi City accounting for 12%, South Asia 12%, Panasonic 8%, Taiwan 6%, and Lianmao 6%; as for Jinan International About 4% of the market share with Tai Yao, Doosan and Hitachi.
Among them, the supply of raw materials is relatively high in the medium and high-end materials of Netcom. Recently, due to the acceleration of the 5G infrastructure construction in the mainland, and the changes in the industry, it began to screen orders and increase the price of some materials.
The price increase of CCL has affected the cost of PCB factory and the supply of raw materials, which has caused great concern in the PCB industry. The world’s leading PCB leader, Ding-KY, said that it is actively striving to expand the supply of raw materials. The current analysis has little impact.
Jian Ding said that the company’s purchase volume is large, compared with other small factories, it should not be affected by the price increase of the raw material, coupled with the recent good demand for HDI market, Jianding capacity utilization is full, customers queue up for goods, and the RMB trend This will help the company increase its gross profit margin.
Another PCB manufacturer mentioned that the price of some products of Shengyi was lower than that of some of its peers. The price increase mainly reflects the market mechanism. However, there are many variables in the current market. The price increase is still determined by the coordination between buyers and sellers.
Copper foil substrate (CCL) is a key raw material for printed circuit boards (PCBs) and cannot be replaced by other materials, accounting for more than 30% of PCB production costs.
PCB has the reputation of “the mother of industry”, and CCL, which plays a key role in PCB, has become the key to the circuit connection design of 3C electronic products. With the wide application of PCBs in automotive electronics, Netcom base stations, notebooks, information equipment, mobile devices and mobile phones, and the major countries in the world to actively promote 5G infrastructure, the first to drive the growth of medium and high-end CCL materials.
Post time: Aug-30-2019