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HKPCA: South China Market Summary
December 17, 2006 |Estimated reading time: 3 minutes
Excerpts from HKPCA Presentation, By Ivy Wong, HKPCA Executive Committee Member CLICK HERE to watch the video presentation
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Past & Present <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />China
Today, South China is not only an ideal manufacturing hub which attracts many of the world's leading electronics manufacturers, but it is also the gateway to a huge potential electronics market in China. PCB production in China is expected to show a compound annual growth rate of 14% between 2005 - 2010. South China makes up the largest share of the total PCB production in China.
China's International Trade Picture (in U.S.D. $Billions) Yr Yr Yr YR
2000 2001 2002 2003
Impts 249.2 266.1 325.6 438.2
Expts 225.1 243.6 295.2 412.8
Yr Yr Jan-Sept 2004 2005 2006
Impts 593.3 762 691.2
Expts 561.2 660.1 581.4
Closing the Gap between Chinese & Foreign Invested Companies
(Currency in thousands of Chinese Yuan, 1000 Yuan = $127.61 USD)) 2001 2003 2004
Foreign Invested >500 >400 430
Chinese >200 325 450
Note: Companies with US 1.28 Billion or more in annual revenue
Regional Distribution of PCB Manufacturing
Americas
2002 $10.9b USD
2005 $5.0b USD
Europe
2002 $6.7b USD
2005 $3.9b USD
Asia
2002 $12.1b USD
2005 $22.1b USD
Japan
2002 $22.3b USD
2005 $9.7b USD
Distribution of PCB Manufacturing in Asia Pacific (Excl. Japan)* 2000 2005 % Change '05 WW Share
China 3368 9553 183.6% 23.5%
Taiwan 4510 5446 29.8% 13.4%
S. Korea 2053 4304 109.6% 10.6%
India NA 4304 NA 0.6%
ROA 2303 1561 11.2% 6.3%
Asia Total 12092 22089 82.7% 54.4%WorldWd 40920 40638 100.0%
* in billions of USD shipped
ROA = Rest of Asia
Global PCB Production by Broad Area (% of World Wide Share)
4L 6L 8-16L 18+L Mvia Flex
Americas 1.9 1.3 1.2 0.2 0.2 1.2
Europe 1.7 0.8 0.4 0.1 0.4 4.8
Japan 2.1 1.4 0.9 0.1 2.2 4.8
Asia 34.2 12.3 4.7 0.2 6.5 4.7
World 39,9 15.8 7.3 0.5 9.3 21.2
Top 20 PCB Makers
2000 Country
1 Sanmina-SCI U.S.
2 Viasystems U.S.
3 CMK Japan
4 Ibiden Japan
5 Hitachi Group Japan
6 Nippon Mektron Japan
7 Compeq Taiwan
8 Multek U.S.
9 Fujitsu Japan
10 Tyco PCB U.S.
11 Shinko Electric Japan
12 Daeduck S. Korea
13 DDI U.S.
14 IBM U.S.
15 Panasonic Japan
16 Nanya PCB Taiwan
17 Photocircuits U.S.
18 Unimicron Taiwan
19 SEMCO S. Korea
20 WUS Taiwan
2005 Country
1 Ibiden Japan
2 Nippon Mektron Japan
3 CMK Japan
4 Shinko Electric Taiwan
5 SEMCO S. Korea
6 Unimicron Taiwan
7 Nanya PCB Taiwan
8 Young Poong Grp S. Korea
9 Kingboard PCB Hong Kong
10 Daeduck Grp S. Korea
11 Fujikara Japan
12 Multek U.S.
13 Compeq Taiwan
14 Hitachi Chemical Japan
15 LG Electronics S. Korea
16 Tripod Taiwan
17 Viasystems U.S.
18 Sanmina-SCI U.S.
19 WUS Taiwan
20 AT&S Austria
The top 20 PCB makers in China are all foreign investors, as opposed to organic Chinese companies. They account for 51% of the total PCB value in all of China.
Percentage of Production by Application in 2005
Communication Electronics 27.0%
Automotive 15.0%
Other Data Processing 14.0%
Mobile Phones 12.0%
Consumer Electronics 9.0%
Industrial/Instruments 7.0%
NB 8.0%
LCD 2.0%
MB 3.0%
Military 0.3%
Others 3.0%
Common Technology Levels Mode Best
LW/Spacing - I/L 4/4 3/3
LW/Spacing - O/L 3/3 3/3
Min Via Size 4 3
(B4 electroplate)
A/R Blind Via 0.8:1 1:1
A/R Through Via 8:1 16:1
SMT Panel-dist mil to mil 3/3 1.5/1.5
Layer Count 8 40
Internal Lyr/Thin Capacity 2 mil 2 mil
Panel Size/Lrg Brd 24 x 24 27 x 40
HDI Build Up Structure 1+N+1 3+N+3
Challenges in South China
* Environmental Health & Safety Issues
* High Labor Turnover
The growing Chinese economy creates more job opportunities for Chinese workers. It has also created a competitive environment where it is difficult to keep trained workers for any length of time. High labor turnover has an especially big impact on South China enterprises, where the economies are more established than in other areas of China. Additionally, the scarcity of skilled, technical labor at intermediate and higher levels of skill negatively impacts production efficiencies.
* For information on current wage labor rates through the regions of Southern China, please view the full presentation.
* Power Shortage
The Chinese government is speeding up their development of nuclear power generation, wind power and hydro power generation, as well as other renewable engery sources to ease the acute power shortage problem. At present, PCB and other manufacturers struggle with imposed down time by the government with mandatory power cuts during peak time power consumption.
* Tax Policy
Conclusion
The economic conditions continue to be strong in China.
In the global landscape, business continues to be shifted from the West to the East.
Growing demands for Chinese electronics products encourage growth of the PCB market in China.
- More than 60% of PCB manufacturers in China are located in the South part of China.CLICK HERE to watch the video