The CPCA Spring International PCB Technology/Information Forum, a heavy-weight content of the International Electronic Circuit Exhibition, was grandly opened on the afternoon of March 19th at the National Convention and Exhibition Center. At the opening ceremony of the forum, the Chairman of CPCA delivered a keynote speech titled "PCB Industry Review and Prospect in the Past Decade". The Chairman hopes that colleagues in the industry will work together to grasp the development trend of the industry and create the next golden decade of industry development!

           External cyclical changes trigger structural changes in the industry. Only by seizing opportunities and improving their capabilities can enterprises embark on a path of sustainable development.

           Why do we need to start looking back from ten years ago? Because in 2008, the industry faced great challenges. This is the impact of the global financial crisis, especially in the second half of the year, where many companies experienced a cliff like decline in orders, resulting in many layoffs and panic incidents. It can be said that we have walked through the ups and downs of the past decade. Similarly, in 2018, the macro environment also experienced many challenges and uncertainties. So I want to start from 2008, review the path the industry has taken in the past decade and look forward to how it should go in the future.

           At that time, we were experiencing a financial crisis, and national GDP was 31 trillion. And by last year, the GDP had exceeded 90 trillion. In 2008, there were two main channels for us to communicate with the outside world. The phone was through the functional mobile phone, and the Internet was through the PC side. The 2G network was the most used, and the 3G network was the most talked about. In 2018, mobile smart terminals took care of everything. Currently, 4G is the most widely used and 5G is the biggest hotspot. The whole world has undergone earth shattering changes in the past decade.

           Looking back at the past, let's first look at the performance of the industry: the global output of PCBs increased from over 40 billion US dollars in 2008 to over 60 billion US dollars in 2018. In terms of compound growth rate, it reached 2.6%, which is not a particularly high number numerically. But behind this, there are important adjustments. From a trend perspective, the PCB industry has maintained a continuous growth trend since 1988. For the electronic information industry, it is invaluable. The process was not smooth sailing, but showed the characteristics of large cycle growth and small cycle fluctuations. And the upward cycle is shortening, continuously rising from 10 years to 8, 6, and 5 years, which means that our industry is maturing in the process of growth. At the same time, it will also be influenced by external industries and undergo some changes.

           The global output of PCBs increased from over 40 billion US dollars in 2008 to over 60 billion US dollars in 2018.

           The electronic information industry is driving the development of our PCB industry. The 3C market remains the main force, but significant structural changes have occurred: PC has experienced a significant decline, while PCB demand represented by mobile phones has grown significantly. The rise and fall of this trend has also brought profound changes to the industry.

           The concentration of industries has further increased, with the top 10 companies accounting for 33% of the global total, an increase of 5.5 percentage points compared to 2008. It can be seen that in the process of industrial development, top enterprises contribute the most.

           Analyzing the top 10 companies in 2008 and 2018 reveals significant changes. There are a total of 4 new companies entering the top ten globally, especially Company S, which has grown rapidly. In terms of scale, the threshold for the tenth place has increased by $200 million over the past decade, but the first place has increased by $1.9 billion, and the gap is widening. The difference between **** and ****0 has increased from 2 times to 4 times, which is a significant change. Ten companies have newly entered the TOP 40 camp, including five domestic funded enterprises.

           Analyzing the top 10 companies in 2008 and 2018 reveals significant changes.

           There are two main reasons for the changes, one is that the external has seized the pulse of industrial development, and the other is that the internal has actively expanded production capacity and rapidly improved operational and technological capabilities. For example, Company P focuses on the mobile phone market by focusing on soft boards and has become the world's largest PCB manufacturing enterprise; Company D combines software and hardware through mergers and acquisitions; Company U has unique features in packaging substrates and HDI; Company S has formed its own competitiveness in the fields of communication and packaging substrates; Company J has formed an advantage in high efficiency and low cost. In other words, rapid development requires industrial stimulation and seizing opportunities.