Why the 5G Era Is a Golden Age for PCB Industry | High-Frequency, High-Speed & FPC Market Growth

Why the 5G Era Is a Golden Age for PCB Industry | High-Frequency, High-Speed & FPC Market Growth

 

The arrival of 5G marks the beginning of true Internet of Things (IoT) connectivity — 5G will ultimately interconnect everything in the world. With the advent of the 5G era, communication PCBs are also entering a period of unprecedented growth and opportunity.

 

The PCB (printed circuit board), known as the "mother of electronic products," is an essential component in virtually all electronic equipment and products. This creates continuous and stable downstream demand, and the development level of the PCB industry reflects, to a certain extent, the speed and technological sophistication of a country or region's electronic information industry.

 

This article analyzes the global PCB industry landscape, the upstream and downstream supply chain, and the four major growth drivers that make the 5G era a golden age for PCB manufacturers — base station upgrades, FPC demand from 5G mobile devices, automotive electronics growth, and cloud computing data center expansion.

 

## 1. Global PCB Industry Overview and Market Data

 

According to Prismark data, the global PCB industry has maintained a compound annual growth rate (CAGR) of approximately 4% over the past decade. In 2017, global PCB output value reached USD 58.8 billion, representing a year-on-year growth of 8.60%. China's PCB output value reached USD 29.7 billion, with a year-on-year growth of 9.70% — outpacing the global growth rate.

 

From a regional distribution perspective, the center of gravity of the PCB industry continues to shift toward Asia, and China has become the most important player in the global PCB industry, accounting for more than 50% of global PCB output value. This trend has been driven by China's strong electronics manufacturing ecosystem, favorable infrastructure, and the continuous migration of electronics production from North America, Europe, and Japan to the Asia-Pacific region.

 

### 1.1 PCB Industry Chain Position

 

The PCB industry sits in the middle of the overall electronics manufacturing supply chain:

 

**Upstream — Raw Materials**: PCB production relies on various raw materials, mainly including copper clad laminates (CCL), copper foils, copper balls (for electroplating), prepregs (bonding sheets / B-stage resin), gold salts (for ENIG / electrolytic gold), solder mask inks, dry films, and other chemical materials. For flexible circuit boards (FPC), additional raw materials include coverlay films and electromagnetic shielding films.

 

**Downstream — Applications**: PCBs are used across computers, communication equipment, industrial control, automotive electronics, consumer electronics, and aerospace — an extremely wide coverage. Among these, communications, computers, and consumer electronics are the three most important application segments for the PCB industry, with demand accounting for approximately 27%, 27%, and 14% respectively. These three segments directly drive the development of the upstream PCB industry.

 

### 1.2 Upstream Raw Material Cost Structure

 

Copper clad laminate (CCL) is typically the largest single raw material cost in PCB manufacturing, followed by copper foil, prepreg, and chemical consumables (solder mask, dry film, plating chemicals). For high-frequency and high-speed PCBs, the cost of specialty laminates (such as Rogers, Arlon, Panasonic Megtron, or low-Dk/low-Df materials) represents an even larger proportion of total material cost — making material selection a critical factor in both performance and pricing.

 

## 2. The Big Winner in the 5G Era: PCB

 

The 5G technology cycle drives PCB demand growth through four major channels: base station infrastructure, 5G mobile devices (FPC), automotive electronics, and cloud computing data centers.

 

### 2.1 Base Station PCBs: Increased Quantity and Higher Value per Station

 

The 5G era brings both a significant increase in the number of base stations and a substantial increase in the PCB value per base station.

 

#### Base Station Quantity Growth

 

First, the number of 5G base stations will increase compared to 4G. According to public data from China's three major telecom operators, China Mobile, China Telecom, and China Unicom added 400,000, 380,000, and 340,000 4G base stations respectively in 2016, bringing their cumulative totals to approximately 1.51 million, 0.89 million, and 0.74 million — for a total of about 3.14 million 4G base stations.

 

In the 5G era, due to higher frequency bands (especially millimeter-wave and sub-6GHz mid-band spectrum) and shorter signal propagation range, the density of base stations must increase. According to industry estimates, the number of small cells (micro base stations, pico cells, and femto cells) deployed in the future will be more than 10 times the current macro base station market — creating an enormous incremental PCB demand.

 

#### Higher PCB Value per 5G Base Station

 

Second, due to the characteristics of 5G — high speed and high frequency — the value of communication boards in a single base station will also increase significantly.

 

On one hand, with the increase of 5G frequency bands, the higher frequency greatly increases the number of RF front-end components. Massive MIMO (Multiple-Input Multiple-Output) antenna arrays are integrated into the AAU (Active Antenna Unit). The PCB area on the AAU has greatly increased, the number of layers has increased, and the added value has risen — with a shift toward high-frequency, high-speed materials and specialty copper clad laminates (such as low-Dk PTFE composites, hydrocarbon ceramics, and high-speed epoxy laminates). The antenna array itself requires precisely controlled impedance, low insertion loss, and consistent dielectric properties across large-format PCBs.

 

On the other hand, with the substantial increase in 5G transmission data rates, there is a higher requirement for the data processing capability of the base station BBU (Baseband Bandwidth Unit). The BBU will use larger-area, higher-layer-count PCBs, and the substrate requires high-speed, high-frequency materials to support 100G/200G/400G optical transport interfaces and high-speed SerDes signals. High-layer-count backplanes (16–32 layers or more) with controlled impedance and low-loss materials are essential.

 

According to conservative estimates, the PCB value of a single 5G macro base station is more than double that of a 4G base station — driven by higher layer counts, larger board sizes, specialty high-frequency materials, and more complex RF and digital board architectures.

 

### 2.2 5G Mobile Devices: Thin, Light Design Drives FPC Market Growth

 

The demand for thinner and lighter 5G smartphones, tablets, and wearable devices drives significant growth in the FPC (Flexible Printed Circuit) market.

 

IDC predicted that the first batch of 5G smartphones would launch in the second half of 2019. By 2020, 5G mobile phone shipments were expected to reach 7% of total smartphone shipments (approximately 212 million units), and account for 18% by 2022. In reality, 5G smartphone adoption has accelerated even faster than these early projections, with 5G now the dominant specification in mid-range and flagship smartphones globally.

 

According to industry research, newer Apple iPhones contain at least 20 FPC part numbers, with a total FPC value of more than USD 20 per device. Tablet products are also expected to become further thin and light, using a large number of FPC components. At the same time, leading domestic brands such as Huawei, OPPO, and vivo have also increased their FPC usage to 10–12 pieces per device.

 

In 2016, the global FPC market scale reached RMB 85.2 billion, and China's FPC market reached RMB 31.6 billion. It was expected that by 2021, China's FPC market would reach RMB 51.6 billion, with a compound growth rate of 10%. The 5G era has further accelerated this growth, as 5G devices require additional FPCs for 5G antenna modules, mmWave antenna-in-package (AiP) structures, multiple camera modules, flexible display interconnects, and 5G RF front-end modules.

 

### 2.3 Automotive Electronics: Electrification and Intelligence Bring Incremental PCB Demand

 

Automotive electronics — driven by electrification (EV / HEV) and intelligent driving (ADAS / autonomous driving) — represents another major incremental market for the PCB industry.

 

#### Intelligent Driving and Automotive Electronics

 

The electronification of automobiles increases the amount of PCB used per vehicle. In 2010, automotive electronics accounted for approximately 30% of the vehicle bill of materials (BOM). It is expected that this proportion will increase to 50% by 2030.

 

Currently, the PCB area of mid-range vehicle models is approximately 0.5–0.7 square meters, and economy cars use 0.3–0.4 square meters. Assuming an average PCB price of RMB 1,000 per square meter, the average per-vehicle PCB value is approximately RMB 800. For high-end and luxury vehicles, the PCB usage area reaches approximately 2.5–3 square meters, with a per-vehicle value exceeding RMB 2,500. As the level of automotive electronification deepens, the PCB demand area per vehicle will gradually increase.

 

In addition, Advanced Driver Assistance Systems (ADAS) for intelligent driving require a large number of PCBs — including radar sensor boards (77GHz millimeter-wave radar), camera module boards, ultrasonic sensor boards, LiDAR processing boards, and domain controller boards. These boards often require high-frequency materials (for radar), high-speed digital processing (for sensor fusion), and automotive-grade reliability (AEC-Q200 qualified components, IATF 16949 certified manufacturing).

 

#### New Energy Vehicles (NEVs)

 

The amount of PCB used in new energy vehicles (battery electric vehicles and plug-in hybrids) is much higher than in traditional internal combustion engine vehicles. If the per-vehicle PCB usage is initially estimated at 3 square meters, and assuming an average PCB price of RMB 1,000 per square meter, the incremental PCB market size corresponding to new energy vehicles from 2018 to 2020 was estimated at RMB 2.85 billion, RMB 3.96 billion, and RMB 5.43 billion respectively.

 

Key NEV PCB applications include:

 

- **Battery Management System (BMS)**: Multi-layer PCBs with precise current sensing and high-voltage isolation

- **Motor Drive / Inverter**: Thick-copper PCBs (2oz–6oz) or metal-core PCBs for high-current power stages

- **On-Board Charger (OBC)**: High-power, high-efficiency PCB with thick copper and thermal management

- **DC-DC Converters**: High-frequency switching power supply PCBs

- **High-Voltage Distribution Units**: Heavy copper busbar-style PCBs

 

### 2.4 Cloud Computing and Data Centers: High-End High-Speed PCB Demand

 

Data centers are driving demand for high-end, high-speed PCB products — including high-frequency, high-speed, and high-layer-count boards. Currently, global data centers are developing toward high-speed transmission and large-capacity storage features.

 

According to IDC statistics, the global data center market size reached USD 45.2 billion in 2016, with a growth rate of 17%. The growth of China's data centers has been significantly faster than the global pace — reaching RMB 71.5 billion in 2016, with a growth rate of 37%.

 

In the 5G and cloud computing era, data center PCBs require:

 

- **High-layer-count backplanes and midplanes**: 20–40+ layers for server and switch chassis

- **High-speed materials**: Low-Dk, low-Df laminates (such as Panasonic Megtron 6/7, Rogers RO4000 series, Shengyi S1000-2M) to support 25G, 56G, 112G SerDes signals

- **Large-format boards**: Up to 24×36 inches or larger for server motherboards and switch line cards

- **High-density interconnect (HDI)**: Any-layer HDI for advanced processor packages and GPU boards

- **Controlled impedance**: Tight impedance tolerance (±5–7%) for high-speed differential pairs (PCIe Gen 4/5, 100G/400G Ethernet)

 

The explosion of AI training and inference workloads has further amplified data center PCB demand, as GPU/AI accelerator boards require extremely high layer counts (20–30+ layers), ultra-high-speed signaling, and advanced power delivery architectures.

 

## 3. Key Technology Trends in 5G-Era PCBs

 

The 5G era is not just about more PCBs — it is about more technologically advanced PCBs. Key technology trends include:

 

### 3.1 High-Frequency Materials

 

5G FR2 (millimeter-wave) and FR1 (sub-6GHz) RF front-ends require low-Dk, low-Df materials such as PTFE composites (Rogers RO3000/RO4000 series, Arlon AD series), hydrocarbon ceramics, and liquid crystal polymer (LCP) for antenna modules. These materials ensure low insertion loss, stable impedance, and consistent performance across temperature and frequency.

 

### 3.2 High-Speed Digital Materials

 

BBU, data center, and 5G core network equipment require high-speed laminates with low Df (≤0.005 at 10GHz) to support 25G–112G SerDes channels. Materials such as Panasonic Megtron, Shengyi S7439G, and I-Speed are increasingly replacing standard FR-4 in these applications.

 

### 3.3 High-Density Interconnect (HDI) and Any-Layer HDI

 

5G smartphones and compact base station modules require fine-line HDI technology — with line/space down to 50/50μm or finer, laser-drilled microvias, and any-layer interconnect for maximum routing density.

 

### 3.4 Thick Copper and Metal-Core PCBs

 

Power electronics in 5G base stations, EV chargers, and data center power supplies require thick copper PCBs (2oz–10oz) and metal-core (aluminum / copper) substrates for high-current carrying and efficient thermal dissipation.

 

3.5 Flexible PCBs and Rigid-Flex PCBs

 

5G mobile devices, wearable electronics, and automotive display interconnects drive demand for high-performance FPCs and rigid-flex PCBs — including LCP-based FPCs for 5G mmWave antennas and multi-layer FPCs for compact device internals.

 

4. Conclusion

The 5G era represents a golden age for the PCB industry, driven by four powerful growth engines: the massive deployment of 5G base stations (with both higher station count and doubled value per station), the proliferation of FPCs in 5G mobile devices, the rapid electronification and electrification of automobiles, and the exponential growth of cloud computing data centers.

Beyond pure volume growth, 5G is driving a technology upgrade across the PCB industry — shifting demand from standard FR-4 boards toward high-frequency materials, high-speed digital laminates, HDI and any-layer interconnect, thick copper and metal-core boards, and advanced flexible and rigid-flex constructions. PCB manufacturers that invest in these advanced capabilities — and that can meet the stringent quality, reliability, and certification requirements of telecom, automotive, and data center customers — are best positioned to capture the significant growth opportunities of the 5G era.

 

For China, which already accounts for more than 50% of global PCB output value, the 5G era represents both an opportunity to consolidate its manufacturing leadership and a challenge to move up the technology value chain — from low-cost, high-volume commodity boards toward high-value, high-technology advanced PCBs that power the global 5G infrastructure.

 

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