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I. Industry Status: Steady Growth and Collaborative Development Across the Chain
In 2024, the Chinese PCB industry is expected to achieve significant growth driven by the recovery of the electronic information manufacturing industry. As the “skeleton” of electronic products, the PCB industry benefits from the explosive demand in downstream sectors such as 5G, artificial intelligence, and smart terminals, exhibiting the following characteristics:
1. Breakthrough Growth in Market Size
In 2024, the revenue of China’s PCB manufacturing industry is projected to reach 373.1 billion yuan (approximately 52.4 billion USD), a year-on-year increase of 15.4%, outpacing the global average growth rate (approximately 8%-10%).
The synergy effect across the industry chain is evident: revenue from upstream PCB materials (such as copper-clad laminates and electronic chemicals) is 185.9 billion yuan (+20%), and specialized equipment (such as laser drilling machines and exposure machines) generates revenue of 17.3 billion yuan (+20.4%), reflecting an acceleration in domestic substitution.
2. Diverse Demand Drivers
Recovery in Consumer Electronics: Smartphone production is expected to reach 1.25 billion units (+8.2%), driving demand for high-density interconnect (HDI) boards;
Computing Power and Communication Infrastructure: Over 60% of global 5G base stations are from China, leading to a surge in demand for high-speed PCBs for servers and switches;
Automotive Electrification: The penetration rate of new energy vehicles exceeds 40%, with automotive PCBs (such as millimeter-wave radar boards) growing at over 25%.
3. Clear Trends in Technological Upgrades
Increased Proportion of High-end Products: The localization rate of IC substrates and high-frequency, high-speed boards (used in AI servers) has risen from 15% in 2020 to 35% in 2024;
Transition to Green Manufacturing: Leading companies such as Shenzhen South Circuit and Hubei Electric’s factory unit energy consumption has decreased by 12% year-on-year.
II. Analysis of Core Driving Factors
1. Dual Push from Policy and Market
The national “14th Five-Year Plan” lists PCBs as a key focus in the electronic components industry, with the Yangtze River Delta and Pearl River Delta regions forming a cluster development;
Supply chain localization by terminal manufacturers such as Huawei and BYD has driven domestic PCB order growth by over 30%.
2. Technological Breakthroughs Breaking Foreign Monopolies
The ultra-low loss substrate materials (Dk<3.0) developed by the Chinese Academy of Sciences have achieved mass production, breaking the monopoly of American and Japanese companies;
On the equipment side: The market share of Han’s Laser’s CO₂ laser drilling machine has risen to 50%, replacing imported equipment.
3. Explosive Growth of Emerging Application Scenarios
AI Servers: A single GPU motherboard requires over 20 layers of PCB, with a value five times that of ordinary servers;
Satellite Internet: Demand for high-frequency PCBs for low-orbit satellites is expected to grow by 200% in 2024.
III. Challenges and Pain Points
1. Gaps Remain in High-end Fields: 90% of ABF substrates (used for advanced packaging) rely on Japanese and Korean companies;
2. Environmental Cost Pressures: The EU’s “New Battery Regulation” requires PCB lead content to be below 0.1%, putting upgrade pressure on some small and medium-sized enterprises;
3. Concerns Over Price Wars: There is an oversupply of mid-to-low-end PCB capacity, with companies generally having gross margins below 25%.
IV. Future Outlook (2025-2030)
1. Technological Trends
“Smaller, Faster, Greener”:
Line width/spacing is evolving to below 10μm (currently mainstream is 20μm);
6G communication is driving the development of PCB materials in the terahertz frequency band;
The proportion of bio-based resins and halogen-free materials is expected to exceed 30%.
2. Market Growth Points
AI + Automotive Electronics: The PCB value of L4 autonomous driving vehicles is expected to exceed 500 USD;
Space Economy: Commercial satellite constellations are creating a new track for radiation-resistant PCBs;
Medical Electronics: The compound annual growth rate of flexible PCBs for wearable devices is expected to be 18%.
3. Restructuring of the Industry Landscape
3-5 PCB giants with revenues exceeding 10 billion yuan are expected to emerge domestically (only Hubei Electric is expected to exceed 8 billion in 2024);
Capacity expansion in Southeast Asia may lead to a diversion of mid-to-low-end orders, forcing domestic companies to move upmarket.
V. Recommendations and Strategies
1. At the Enterprise Level:
Increase R&D investment (recommended revenue share ≥5%), focusing on breakthroughs in IC substrates and optoelectronic co-packaged boards (CPO);
Collaborate with universities to establish laboratories (e.g., Huawei-Harbin Institute of Technology PCB joint laboratory model).
2. At the Policy Level:
Establish a special fund for PCBs to support the tackling of “bottleneck” technologies in equipment/materials;
Improve the recycling system for waste circuit boards, aiming to increase the recycling rate of regenerated copper to 60% by 2025.
The Chinese PCB industry has shifted from a phase of “scale expansion” to one of “quality leap”. In the next five years, driven by the overlapping effects of AI, new energy, and aerospace technology, the industry will encounter structural opportunities. However, only by overcoming high-end technologies and building a green supply chain can it achieve the leap from “global factory” to “innovation center.”
End
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Written by: Wang Gang
Edited by: Li Dan
Reviewed by: Wang Gang
Chongqing Electronic Circuit Manufacturing Industry Association
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