With the official release of the 5G standard SA solution by 3GPP and the overweight layout of the three major operators in 5G R&D, testing, industry chain and application, 5G commercial has entered a comprehensive sprint period. According to industry insiders, as the 5G commercial period approaches, it will drive the market scale of related industries to expand rapidly. The FPC (flexible circuit board) industry, which is an important component of mobile phones, will also have great opportunities for development, and is expected to usher in a new round of large-scale expansion. upgrade.
According to the “White Paper on Economic and Social Impacts of 5G” issued by China Information and Communication Research Institute, 5G is expected to drive China’s direct economic output by 6.3 trillion yuan and economic value added by 2.9 trillion yuan by 2030.
In the eyes of the industry, the advent of the 5G era is also expected to open a new round of investment boom. FPC is one of them. The data shows that the total global PCB production value in 2014 was 57.437 billion US dollars, of which the total output value of FPC reached 11.746 billion US dollars. With the continued development of applications such as smartphones, tablets, storage services and automotive electronics, FPC’s total output value is expected to reach US$13.832 billion by 2019, with a compound growth rate of approximately 3.8%.
“The rapid development of 5G will also bring about the replacement of new consumer electronics. For example, Huawei and ZTE have started trials of local area networks in major cities, which will inevitably lead to the upgrading of mobile terminals. Experimenting with the next generation of products also puts new demands on the supply of upstream industries. “Li Dahua, chairman of Shangda Electronics, said that at present, Shangda Electronics has made a key layout in 5G related module technology and production capacity. In order to ensure the maximum development and testing of downstream terminal manufacturers at the 5G commercial product level.
Many industry insiders also said that with the accelerated development of 5G, domestic local enterprises represented by Electronics, Dongshan Precision (002384), Helitai (002217), etc. are expected to achieve an accelerated rise.
However, it is worth mentioning that in the FPC field, domestic companies have many shortcomings in terms of technology, research and development capabilities, market share, etc. compared to companies such as Japan and South Korea. Li Xiaohua also admitted that some FPC companies in Japan, South Korea and Taiwan started earlier and accumulated relatively long experience in technology and production. They also have a certain dominant position in the entire industrial chain, as well as in customer and supplier support. . “However, at present, the processing capability indicators of Shangda Electronics have reached 1.33 or higher, and the target for 2018 is 1.67. The LAR value at the client (customer sampling pass rate) is above 98%, and the DPM value (customer inputs) The non-performing rate is less than 200PBM. For example, the line width and line spacing, the latest line of the electronic can be 35 microns, the minimum diameter can be 50 microns. In 2017, Shangda Electronics invested in the first domestic COF in Zhangzhou, Jiangsu. The production line can achieve a line width of about 10 microns after it is put into production. At present, only three companies in the world can achieve a line width of 10 microns. How to make thinner lines on thinner materials, how to improve the softness and durability of the product. In terms of bending, etc., the gap between domestic FPC companies and foreign countries is not very large.”
In addition, since the FPC industry is a heavy asset industry, in order to maintain the technological leadership of the products, it is necessary to invest in more automated equipment based on the expansion of production capacity. According to Li Xiaohua, in 2016 and 2017, the amount of equipment invested by Shangda Electronics is about 100 million yuan per year. “It is expected that in September this year, the COF project invested by Shangda Electronics in Zhangzhou, Jiangsu will cover the entire main plant, and the investment amount of the first test line will be around 200 million. The investment in COF project represents a higher level in the FPC industry. techinque level.”