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China PCB manufacturing output amounted to $ 54.8 billion

Date: 2014-09-11
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        Over the five years through 2012, revenue for the printed circuit board manufacturing industry in China has increased at an average annualized rate of 11.4% to $54.8 billion, says IBISWorld.


        As printed circuit boards are an intermediate product, the majority of industry revenue is derived from sales to downstream wireless And consumer electronic manufacturing industries, says the research firm. Growing household income in China has led to increasing demAnd for electronic products, boosting demAnd for printed circuit boards.


         The industry has a low-to-moderate market share concentration level with several mid-sized enterprises And a large number of smaller firms operating in the industry. The industry's top four companies, Flextronics, Celestica, Tripod Technology, And United Microelectronics, are expected to generate over a quarter of industry revenue. The acquisition of Solectron by Flextronics in 2007 significantly increased concentration levels within the industry, says IBISWorld. 


         As the printed circuit board manufacturing industry in China enters the mature stage of its lifecycle And growth slows down, mergers And acquisitions will become more common, increasing industry concentration And competition, according to the firm.


          High industry competition And new government regulations will continue to put downward pressure on product prices. Intense competition And product saturation across low-end markets will result in research And development becoming increasingly important for industry players, says IBISWorld. Also, new regulations And stAndards will lead to a short period of adaptation in the industry.


          IBISWorld's data include assemblies.


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