Analysis of entry barriers of printed circuit board industry in China in 2012
Industry entry barrier
(1) Financial barriers
The capital barrier of printed circuit board industry is mainly reflected in the production line and related supporting equipment investment. It will cost hundreds of millions of yuan to build a new multilayer production line with annual capacity of more than one million square meters. Therefore, the initial investment amount of printed circuit board industry is large, manufacturers must have a certain financial strength.
(2) Technical barriers
Printed circuit board is a complex market segment of the industry, although different printed circuit boards have some common basic processes, but more important is according to the thickness and material of the substrate, the size and accuracy of the required line width and line spacing, the structure of printed circuit boards, production scale, mounting process and other special requirements specified by customers, combined with the characteristics of the production enterprise, Identify different production processes and equipment. Based on the above reasons, the production equipment and processing technology of low-technology printed circuit boards are relatively simple, and the entry barrier is low. However, for medium and high-end printed circuit boards requiring high technical stability, manufacturers must have more advanced production equipment, proficient in relevant processes, and have a higher technical level.
2012-2016 China Printed Circuit Board (PCB) Industry Forecast and Investment Analysis Report, China Business Information Network
(3) Environmental protection barriers
Countries all over the world pay more and more attention to environmental protection in the production and scrap of electronic products. After the EU issued the Directive on the Restriction of the Use of Certain Hazardous Substances in Electronic and Electrical Equipment (RoHS), the Directive on the Scrapping of Electronic and Electrical Equipment (WEEE), and the Directive on the Registration, Evaluation, Licensing and Restriction of Chemicals (REACH), the Chinese government has also issued the Measures for the Prevention and Control of Pollution from Electronic and Information Products (RoHS). It also announced that it would adhere to the scientific outlook on development, take "energy conservation, emission reduction, consumption reduction and efficiency" as the primary goal of development, and spend three years to find out the basic situation of pollution sources in China. For PCB manufacturers, the increase of environmental protection requirements such as water consumption and water reuse ratio will increase the operating costs of enterprises, and pose a new test to the financial strength and technical ability of enterprises.
(4) Customer recognition barrier
Printed circuit board is the basic accessories of electronic products, its quality is directly related to the function and life of electronic products. Therefore, the downstream customers of printed circuit boards, especially high quality large customers, have higher requirements for printed circuit boards. High-quality PCB customers tend to cooperate with large-scale PCB manufacturers. Their inspection cycle of PCB suppliers is about 1-2 years. Once a long-term and stable cooperative relationship is formed, they will not easily change the supplier, resulting in a high barrier of customer recognition.