Rising pressure on raw material and energy prices.
The main raw materials required for the production of printed circuit boards include copper clad laminates, copper foils, prepregs, chemical solutions, anode copper/tin/nickel, dry film, ink, etc. In addition, the production of printed circuit boards also requires electricity and energy. In recent years, the sharp rise in the prices of precious metals and basic energy such as petroleum and coal has also caused the prices of major raw materials and energy such as copper clad laminates and copper foils in the printed circuit board industry to rise substantially, which has brought a huge increase to printed circuit board manufacturers and brought certain cost pressures.
Price pressure on downstream industries.
At present, the market competition in my country’s printed circuit board industry is relatively high, the scale of a single manufacturer is not large, and its pricing power is limited. With the expansion of production capacity and the intensification of competition in the downstream industry, the price competition in the downstream industry has become increasingly fierce, and controlling product costs is the focus of many manufacturers. In this case, the cost pressure of downstream industries may be partially passed on to the printed circuit board industry, and there is a greater obstacle to increasing the price of printed circuit boards.
Risk of RMB appreciation: Affecting exports and companies that focus on foreign orders.
Excessive supply in the industry requires further consolidation of risks.
Solve environmental problems and ROHS standards.
3G license has not been issued.
The price of raw materials rises, and the price of PCB cannot be raised, but when it falls in stages, it immediately attracts a demand for price reduction in the downstream industry. PCB structural supply and demand imbalance. There are three levels of enterprises: high, medium and low. The middle and high end are dominated by foreign, Hong Kong, Taiwan and a few state-owned enterprises, while domestic enterprises are at a disadvantage in capital and technology. Low-end refers to small factories with irregular operation. Due to the low investment in equipment and environmental protection, they form a cost advantage. At the mid-end level, there is a dense situation of manufacturers, and the competition is more intense. Since 2006, some manufacturers have renovated and expanded, the market is difficult to digest quickly, and the price war is becoming more and more fierce.
The Chinese government strictly formulates and implements regulations on pollution control, involving the PCB industry, and it is not allowed to build and expand PCB factories, and the regulations for electroplating factories are very strict.
Worker wages are rising rapidly.
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