The gap between supply and demand of high-end circuit boards has expanded.
After the prices of cyclical products such as energy, chemicals, and steel have risen sharply, consumer products have recently begun to increase their prices. With the reappearance of the new crown epidemic under control, price increases in the electronics industry chain may also begin to spread.
PCB industry is expected to usher in prosperity
Recently, the demand for high-end PCBs used in servers and data centers has increased sharply. In particular, the shortage of ABF carrier boards has become more serious. Samsung Electro-Mechanics, Daedeok Electronics, and other companies have increased their investment in high-end PCBs, with a total scale of more than several trillion won. In addition to the ABF carrier board, the entire PCB sector also ushered in business recovery.
Benefit from the alleviation of the industry’s core shortage
It is reported that the PCB industry is expected to usher in a continuous recovery of prosperity. On the one hand, benefiting from the alleviation of the industry’s core shortage, the demand for downstream smart terminal shipments has been effectively released. On the other hand, the shipment growth of base stations and servers is promoted by the new 5G infrastructure.
In terms of raw material prices, the prices of key raw materials such as copper, fiberglass cloth, and epoxy resins are expected to gradually enter a stable or downward channel. Even if the prices of raw materials rise, some large PCB manufacturers still have the bargaining power to pass downstream.