PCB Industry Chain

PCB Industry Chain

Classified according to the upstream and downstream of the industry chain, it can be divided into raw materials-copper clad laminates-printed circuit boards-electronic product applications. The relationship is simply expressed as:

Glass fiber cloth: Fiberglass cloth is one of the raw materials of copper clad laminates. It is woven from glass fiber yarn and accounts for about 40% (thick board) and 25% (thin board) of the cost of the copper clad laminate. The glass fiber yarn is calcined into a liquid state from raw materials such as silica sand in a kiln. It is drawn into a very fine glass fiber through a very small alloy nozzle, and then hundreds of glass fibers are twisted into a glass fiber yarn. The construction investment of the kiln is huge, and generally requires hundreds of millions of funds, and once it is ignited, it must be produced without interruption for 24 hours, and the entry and exit costs are huge. Glass fiber cloth manufacturing is similar to weaving companies. The production capacity and quality can be controlled by controlling the speed, and the specifications are relatively single and stable. There has been almost no major change in specifications since World War II. Unlike CCL, the price of fiberglass cloth is most affected by the relationship between supply and demand. In recent years, the price has fluctuated between US$0.50-1.00/meter. At present, the production capacity of Taiwan and Mainland China accounts for about 70% of the world's total.

Copper foil: Copper foil is the raw material that accounts for the largest proportion of the cost of copper clad laminates, accounting for about 30% (thick plate) and 50% (thin plate) of the cost of copper clad laminates. Therefore, the price increase of copper foil is the main driving force for the price increase of copper clad laminates. The price of copper foil is closely reflected in the price change of copper, but the bargaining power is weak. Recently, with the steadily rising copper price, copper foil manufacturers are in a difficult situation. Many companies are forced to close down or be merged, even if copper clad laminate manufacturers accept copper foil. Prices have risen and various copper foil manufacturers are still in a state of general loss. Due to the appearance of the price gap, another wave of price increases is likely to occur in the first quarter of 2006, which may drive the price of CCL to rise.

Copper clad laminate: The copper clad laminate is a product made by pressing glass fiber cloth and copper foil together with epoxy resin as a fusion agent. It is the direct raw material of PCB and is made into a printed circuit after etching, electroplating, and multi-layer board pressing. board. The demand for funds in the copper clad laminate industry is not high, about 30-40 million yuan, and production can be stopped or changed at any time. In the upstream and downstream industrial chain structure, CCL has the strongest bargaining power. It not only has a strong voice in the procurement of raw materials such as fiberglass cloth and copper foil, but also can pass on the pressure of rising costs as long as the downstream demand is sufficient. Downstream PCB manufacturers. In the third quarter of this year, the price of copper clad laminates began to increase by about 5-8%. The main driving force was to reflect the price increase of copper foil, and the strong downstream demand could digest the price increase pressure passed on by CCL manufacturers. Nanya, the world's second-largest copper clad laminate manufacturer, also raised product prices on December 15, showing that at least the first quarter of 2006 PCB demand has a good pattern.