China's future PCB industry opportunities and challenges coexist

     From 1990 to 2010, this 20 years is the golden period of China's PCB production capacity expansion. In this golden period as long as the money to invest, investment to expand production capacity, expand production capacity will be able to earn money, earn money to invest, for many years to pursue growth and expansion, the continuation of the circular path of investment expansion - - profit ". But after 2010, the loop was gone. Due to excessive investment and insufficient market demand, resulting in excess capacity in the industry, but this excess in the future for a long period of time is difficult to solve.

     Japanese companies experiencing rising operating costs, enterprises are now facing the problem Chinese. We do a weighted average of the world's top ten enterprises gross profit margin and net interest rates, the entire gross profit margin and net interest rates have declined steadily downward trend.

     The problem of as mentioned earlier: the shift of growth, industry overcapacity continued pressure, weak end demand and market structure reform, accelerate operating costs rising rapidly, the impact of the Internet on traditional industries...... These have a great impact on the Chinese PCB industry, believe that these are the problems faced by Japanese counterparts.

In this new normal, we want to continue technological innovation at the same time, but also pay more attention to the Internet era of business model innovation as well as the wisdom of the transition.

     First, adhere to technological innovation, to the high value-added. Now, more and more enterprises have been from the original foundry role, and gradually to the original design manufacturer.

     Second, promote business model innovation. On the one hand, we should pay attention to operational aspects of the upgrade, pay attention to per capita capacity. As a manufacturing enterprise, if the per capita production capacity is insufficient, it will lose market competition opportunities; on the other hand, to promote the innovation of business model, it is essential to the traditional industries.

     The last point, through the integration of emerging technologies, to build the wisdom of the plant. On the one hand, the use of digital applications and big data thinking, to guide the production, improve efficiency, reduce costs; on the other hand, the use of 3D printing, robot technology, the old mode of production change; furthermore, we need to think about how to through the Internet, change the operating process and sale mode, at the same time, to realize the integration and integration of upstream and downstream resources.


 

(Source: Inside information)

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