PCB Industry Research Report (2025)
1. Industry Overview and Global Position
PCB (Printed Circuit Board), as the support and electrical connection carrier for electronic components, is a core foundational component of the electronic information industry, often referred to as the “heart of electronic systems.” The global PCB industry is characterized by an “Asian dominance, with China at its core.” In 2024, China’s PCB output value is expected to account for 56.1% of the global total, and it is projected to remain above half in 2029. China is not only the largest production base globally but also a significant driver of technological upgrades, achieving breakthroughs in high-end products in fields such as 5G communication, AI computing power, and new energy vehicles.
Industry Chain Structure
• Upstream: Copper foil, substrates, chemical materials, etc., with the domestic production process accelerating, although high-frequency materials and high thermal conductivity materials still rely on imports.
• Midstream: The manufacturing segment shows significant differentiation, with medium and large-scale enterprises dominating the consumer electronics market, while prototyping/small-batch enterprises focus on high value-added niche areas.
• Downstream: Application scenarios are expanding into emerging fields such as AI servers, low-orbit satellites, and the industrial internet, with a continuously optimizing demand structure.
2. Market Size and Growth Drivers
1. Continuous Expansion of Market Size
• Global: The market size reached $89.2 billion in 2023, expected to exceed $90.4 billion by 2028, with a CAGR of 5.4%.
• China: The market size is projected to reach 415.6 billion yuan in 2024, a year-on-year increase of 8.3%; expected to reach 554.5 billion yuan by 2029, with a CAGR of 6.5%.
2. Core Growth Drivers
• Explosion in AI Computing Power Demand: The demand for high-layer boards and HDI boards for AI servers has surged, with a single unit value exceeding 2000 yuan. By 2024, the global HDI output value is expected to reach $12.5 billion, with China accounting for 62.7%.
• Intelligentization of New Energy Vehicles: In 2023, China’s new energy vehicle sales reached 9.5 million units, driving the demand for automotive PCBs. The usage of FPC per vehicle reached 100 pieces, and the demand for BMS system PCBs reached 4㎡/vehicle.
• Expansion of 5G and Data Centers: The construction of 5G base stations is accelerating, with a compound annual growth rate of 11.6% for high-frequency PCBs; the upgrade of data center servers is driving the demand for multilayer boards.
3. Technological Trends and Product Upgrades
1. High Density and Miniaturization
• HDI Technology: Line width/spacing is evolving to below 20μm to meet the packaging requirements of AI chips. The CAGR for HDI output value from 2023 to 2028 is 6.2%.
• 3D Packaging Technology: Achieving higher integration through vertical stacking, applied in advanced packaging fields.
2. High Frequency and High Speed
• Material Innovation: The market size for low dielectric loss (Df≤0.0015) materials is expected to grow at a CAGR of 11.6%, with PTFE substrates applied in 5G millimeter-wave scenarios.
• Design Optimization: High-speed signal transmission requires PCBs to have lower signal delay and better integrity, driving the development of embedded capacitors and resistors.
3. Green Manufacturing and Sustainable Development
• Environmental Regulation Drive: Lead-free and low-VOC materials have become mainstream, with companies enhancing competitiveness through ISO 14001 certification.
• Circular Economy Model: Waste liquid recovery and copper foil regeneration technologies reduce resource consumption, aligning with the “dual carbon” goals.
4. Competitive Landscape and Corporate Strategies
1. Global Competitive Hierarchy
• First Tier: Companies like Japan’s Ibiden, Taiwan’s Zhen Ding, and the USA’s TTM dominate the IC substrate and high-end HDI markets.
• Second Tier: Mainland China’s Shennan Circuits, Unimicron Technology, and Dongshan Precision focus on the communication and automotive electronics sectors.
• Third Tier: Small and medium-sized manufacturers focus on the low-end consumer electronics market, facing integration pressure.
2. Breakthrough Paths for Chinese Enterprises
• Technological Positioning: Shennan Circuits has partnered with Huawei and ZTE to achieve domestic substitution in the 5G high-frequency PCB sector.
• Customer Binding: Unimicron Technology has entered Tesla’s supply chain, and Jingwang Electronics collaborates with BYD to expand into the new energy vehicle market.
• Capacity Expansion: Pegatron is investing in Southeast Asia to build factories, avoiding trade barriers and getting closer to global customers.
5. Challenges and Response Strategies
1. Core Challenges
• Raw Material Cost Fluctuations: In 2023, copper prices rose by 15%, leading copper-clad laminate manufacturers to raise prices multiple times, squeezing profit margins.
• Increased Environmental Pressure: Rising wastewater treatment costs put pressure on small and medium-sized manufacturers for technological upgrades.
• International Trade Friction: The USA has imposed tariffs on PCBs from China, prompting companies to establish operations in Southeast Asia.
2. Response Strategies
• Supply Chain Integration: Achieving vertical integration through mergers and collaborations, such as Shengyi Technology’s acquisition of copper-clad laminate companies.
• Technological Innovation: Increasing R&D investment to develop biodegradable materials, 3D printed PCBs, and other new technologies.
• Policy Utilization: Leveraging support from the “14th Five-Year Plan” to apply for R&D subsidies and tax incentives.
6. Future Outlook (2025-2030)
1. Market Size Forecast
• China: Expected to exceed $50 billion by 2025, with a CAGR of 6.2% from 2023 to 2028.
• Increasing Proportion of High-End Products: The growth rate of IC substrates and HDI boards exceeds 10%, while traditional low-end boards see a slowdown in growth.
2. Technological Development Directions
• AI-Driven: The number of layers in high-layer boards is increasing, and the tier of HDI is rising to meet the iterative demands of AI computing power.
• Automotive Electronics as a Second Growth Pole: The automotive PCB market size is expected to reach $12 billion by 2025, accounting for 24% of the total.
• Opportunities in the Low-Altitude Economy: The demand for lightweight and highly reliable PCBs is growing for drones and eVTOL (electric vertical takeoff and landing aircraft).
3. Investment Recommendations
• Focus on High-End Leaders: Shennan Circuits (communication PCBs) and Xingsen Technology (IC substrates).
• Layout in the New Energy Vehicle Supply Chain: Unimicron Technology (Tesla) and Jingwang Electronics (BYD).
• Beware of Low-End Capacity Overcapacity: Profit margins for traditional consumer electronics PCBs continue to be under pressure.
7. Conclusion
The Chinese PCB industry has shifted from “scale expansion” to “quality improvement,” with high-end, intelligent, and green development becoming the main theme. Leading enterprises, leveraging technological accumulation and customer resources, are expected to further expand their market share; small and medium-sized manufacturers need to accelerate transformation, focusing on niche markets or achieving breakthroughs through mergers. Driven by incremental markets such as AI, new energy vehicles, and the low-altitude economy, the Chinese PCB industry will continue to lead global innovation, providing core support for the full-chain upgrade of the electronic information industry.