PCB will be phased out—what will China use to embrace the market's new favorite?

Date: 2018 November 17, 08:36

In recent years, mobile electronics such as smartphones and tablets have Equipment Leading consumer electronics Product Market Rapid growth, Equipment The trend toward miniaturization and slimming down is becoming increasingly evident. Consequently, traditional PCBs can no longer meet the demands. Product The requirements have prompted major manufacturers to start exploring entirely new technologies as alternatives to PCBs—and among these, FPC, the most favored technology, is rapidly emerging as the future of electronics. Equipment The main connecting accessories.

Additionally, wearable smart devices Equipment , emerging consumer electronics such as drones Product Market Its rapid rise has also paved the way for FPC Product Bringing new room for growth. Meanwhile, various types of electronic Product The trends toward display and touch integration have also enabled FPC to enter broader application spaces by leveraging small- and medium-sized LCD and touchscreen panels. Market Demand is steadily increasing.

The latest report indicates that, in the future, flexible electronics technology will drive a market worth trillions. Market , this is an opportunity for our country to achieve leapfrog development in the electronics industry, potentially becoming a pillar industry for the nation.

Lightweight, flexible, and versatile—FPC is becoming the dominant trend in the PCB industry.

Advantages and Classification

PCB (printed circuit board) is used in nearly all electronic devices. Product Upward, it is considered the "electronic system" Product "The mother of all." FPC (Flexible Printed Circuit) is a type of PCB, also known as a "flexible board."

FPC uses polyimide or polyester Thin film Made from flexible substrates, these products boast high wiring density, lightweight design, ultra-thin profile, bendability, and exceptional flexibility. They can endure millions of dynamic bending cycles without damaging the conductors, allowing for effortless movement and expansion according to spatial layout requirements—enabling true three-dimensional functionality. Assembly , achieving an integrated effect of component assembly and wire connection, offering advantages unmatched by other types of circuit boards.

FPC Product Technical Features

FPC by substrate Thin film The types can be categorized into PI, PET, and PEN, among others. Among these, the PI-covered FPC is the most common type of flexible circuit board, and it can be further subdivided into single-sided PI-covered FPC, double-sided PI-covered FPC, multilayer PI-covered FPC, and rigid-flex PI-covered FPC.

PI Cover Film FPC Classification

The widespread adoption of smart devices fuels the explosive growth of the FPC industry.

        Circuit boards are typically divided into two categories: rigid circuit boards and flexible circuit boards. Rigid circuit boards are primarily used in household appliances such as refrigerators, while flexible circuit boards, thanks to their lightweight, thin profile, and excellent bendability, have become essential components in consumer electronics like smartphones. Product An indispensable component.

Initially, FPC flexible boards weren’t widely used—until Apple began incorporating them extensively in consumer electronics. Product It is gradually becoming more widespread. Apple firmly supports FPC in addressing the issue. Plan , up to 14–16 FPCs are used in the iPhone, with 70% of them being multi-layered and highly complex; the total FPC area across the device is approximately 120 cm². This also applies to devices like the iPad and Apple Watch. Product The FPC usage in these cases is also over 10 units.

Under Apple's demonstration effect, major smartphone manufacturers such as Samsung, Huawei, and HOV quickly followed suit, steadily increasing the usage of FPCs. Samsung phones currently use around 12 to 13 FPCs, with Interflex and SEMCO—both South Korean flexible circuit board suppliers—serving as the primary vendors.

On the other hand, in the smartphone sector, wireless charging—eliminating cumbersome charging cables—is rapidly becoming a major industry trend. In wireless charging systems, FPC Plan It is gradually becoming the preferred choice, as exemplified by Samsung, which has adopted the integrated three-in-one technology approach of FPC + NFC + MST (Magnetic Simulation Technology).

The Samsung S7 features a three-in-one solution combining FPC, NFC, and MST. Plan

According to research insights from the industry chain, the iPhone 8 will likely introduce wireless charging this year, and it is expected to adopt Samsung's technology approach—integrating FPC, NFC, and MST into a single solution. Plan Meanwhile, spurred by the demonstration effect of the iPhone 8, domestic HOV brands are bound to follow suit, driving wireless charging technology to fully blossom. By 2019, it’s estimated that the wireless charging modules from Apple, Samsung, and HOV alone will contribute nearly 4 billion RMB in incremental FPC demand.

The PCB industry is gradually shifting to mainland China.

Since entering the 21st century, global PCB production capacity has gradually shifted toward Asia due to factors such as industry chain integration, labor costs, and transportation expenses. China's PCB manufacturing capacity has expanded rapidly, becoming the world's largest PCB production base by 2006.

Global PCB Production Capacity Changes in Major Countries, 2015–2020

2014–2020 China Mainland PCBs as a Share of Global Production Value

Meanwhile, in the relatively high-end FPC segment of the PCB industry, capacity shifts are also underway. Currently, the output value of domestic FPCs continues to rise as a share of global production, increasing from 6.74% in 2005 to 47.97% in 2015—and it is expected to maintain nearly half of the global market share in the years ahead.

2008–2015 China Mainland FPC Output Value as a Share of the Global Total

2021 Domestic FPC Manufacturer Revenue Share of Global Revenue Forecast

Local enterprises accelerate their rise.

Chinese mainland FPC companies are also entering a period of accelerated growth: Jingchengda has newly established the Taishan Industrial Park, which officially began production in September 2012, with a monthly capacity reaching 120,000 m²; Jingwang has raised funds Funding 740 million yuan is allocated to the industrialization project for high-density, multi-layer, flexible, and metal-based circuit boards. Following its acquisition of MFLEX, Dongshan Precision has significantly expanded production capacity—and remains the only Tier-1 international FPC manufacturer currently ramping up mass production on a large scale.

Domestic FPC Manufacturers' Expansion Plans

Chinese enterprises global Market Accounting for only 10%

Although, in recent years, flexible circuit boards have become domestic capital. Market A major hotspot in the industry. Last March, Shangda Electronics was listed on the "New Third Board," and by September of the same year, it had advanced to the Strategic Innovation Layer. Meanwhile, Xiamen Hongxin Electronics recently received approval from the China Securities Regulatory Commission to list on the ChiNext board. Recently, Jiangxi Heli Tai announced its intention to acquire Lanpei Technology, aiming to secure internationally leading FPC material technology… However, experts point out that currently, FPC Product Some core raw materials, such as flexible copper-clad laminates, conductive adhesive films, and shielding films, are still controlled by foreign-invested enterprises, while domestic FPC manufacturers with Chinese capital remain involved in the international market. Market Relatively weak competitiveness, Sales Primarily focused domestically Market , The Whole Market Market share remains relatively low. European, American, and Japanese companies entered the FPC industry 10 to 20 years earlier than domestic manufacturers, and currently, their scale is significantly larger than that of their Chinese counterparts. Meanwhile, globally, flexible circuit boards are produced at a rate of… Market The demand exceeds 10 billion U.S. dollars—nearly 100 billion RMB—while domestic enterprises are going global. Market Together, they account for only about 10%.

Domestic enterprises accelerate the enhancement of their technological capabilities.

Although domestic FPC companies still have a noticeable gap compared to their international counterparts, industry insiders believe that with the recent growth of Chinese brands such as Huawei, OPPO, and VIVO in the mobile phone market, this gap is gradually narrowing. Brand Its rapid advancement has enabled domestic FPC manufacturers to achieve breakthroughs through their own technological innovations, Production Process transformation and capacity upgrades, along with advancements in technological levels and Production The gap in scale between domestic and foreign-funded enterprises is steadily narrowing. Currently, Market The technical requirements for FPCs are becoming increasingly demanding, such as an ever-increasing number of layers, narrower line widths and spacings, smaller aperture sizes, and enhanced flexibility. According to Li Xiaohua, Shangda Electronics has already begun independently developing high-end FPCs. Product , at Product There have already been new breakthroughs in this area. Measuring FPC Product The key factor determining technical complexity lies in line width and spacing—currently, Shangda Electronics has pushed the limits to 25 microns while ensuring reliable circuitry. Yield Rate Additionally, regarding high-end FPCs such as multilayer, blind buried vias, and second-order blind vias... Product , and it's already done as well Production Prepare. In addition to meeting domestic Market Moreover, expanding overseas Market Becoming another breakthrough direction for domestic FPC enterprises.

        For the past decade or so, domestic enterprises have primarily relied on domestic customers for their growth. Moving forward, the company's future Sales Growth and development momentum will primarily rely on foreign sources. Market . Abroad Market The order has relatively high technical requirements, starting from Price First of all, the added value of overseas orders is relatively high, resulting in revenues that are slightly better than those from domestic orders. Domestic FPC manufacturers are now looking to expand into international markets. Market First, you need talent; second, you need Production Equipment Finally, there’s management. As Apple celebrates the 10th anniversary of its iconic iPhone, ushering in yet another cycle of innovation, we believe that feature innovations—such as OLED displays, 3D cameras, biometric recognition, and wireless charging—as well as the imminent arrival of the 5G era, will significantly boost FPC penetration in smartphones. The widespread adoption of these new features will lead to a general increase in both the number of components and their individual sub-categories within the bill-of-materials (BOM). Consequently, the overall average selling price (ASP) of finished devices is set to rise sharply, driving up the ASP of FPC as well. This, in turn, will create new growth opportunities for FPC. Meanwhile, local high-quality manufacturers equipped with core FPC technology and actively expanding production capacity to embrace this fresh wave of growth momentum are poised to accelerate ahead of the competition. Semiconductor Industry Watch (Text/Liu Yi)