Analysis Of The Development Status Of China's Copper Clad Laminate Industry: A Stable Competition Pattern Has Been Basically Formed, And The Market Concentration Is Relatively High

  With the development of my country’s electronics industry, my country’s copper clad laminate industry has basically formed a relatively stable competition pattern. The industry’s market concentration is relatively high. The most representative leading companies in the industry are Kingboard Laminate and Shengyi. Technology, the market share, product output and product quality of these two companies far exceed those of other non-leading companies.

1. The level of competition in China's copper clad laminate industry

  The full name of copper clad laminate is copper clad laminate, or CCL in English. It is a plate-like material made of wood pulp paper or fr4 sheet as a reinforcing material impregnated with resin glue, covered with copper foil, and hot pressed. Copper clad laminate is the basic material of the electronics industry and the main material for the processing and manufacturing of printed circuit boards (PCB). It is widely used in the fields of electronic products such as televisions, radios, computers, computers, and mobile communications.

  Currently, domestic listed companies in the copper clad laminate industry include: Kingboard Laminate (01888.HK), Shengyi Technology (600183), Jinan Guoji (2636), Nanya New Materials (688519), Huazheng New Materials (603186) , Ultrasonic Electronics (823), Chaohua Technology (2288), Zhongying Technology (300936), Hongchang Electronics (603002), Foster (603002), Gospel (2848), Fangbang shares (688020), Dekai shares (871640), the NEEQ listed companies include Yufeng Weihe (838109.OC) and Jinbao Technology (832728.OC), and non-listed companies include Nanya Plastics and Lianmao Electronics.

  At present, my country's high-end CCL manufacturers are still dominated by foreign investors, such as Rogers, Panasonic Electric Works, etc. The domestic companies with the ability to produce the world's leading high-end CCL are mainly companies such as Kingboard Group and Shengyi Technology.

  However, the current domestic competitive copper clad laminate companies have also begun to get involved in the production and manufacturing of high-end copper clad laminates, such as Nanya New Materials, Gospel, etc., while the remaining small and medium copper clad laminates are mainly produced in low-end copper clad laminates.

2. Market share of China's copper clad laminate industry

  According to the overall industry data disclosed by the Copper Clad Laminate Materials Branch of the China Electronic Materials Industry Association (CCLA) in July 2020, Kingboard Laminate is currently the largest copper clad laminate company in my country, and its main business income accounts for 34.35 of the total industry income. %; Next is Shengyi Technology, accounting for 15.31%; Nanya Electronic Materials (Kunshan) Co., Ltd. accounts for 7.80%, ranking third.

3. Market concentration of China's copper clad laminate industry

  From the perspective of the concentration of competition in the copper clad laminate industry in my country, the concentration of the copper clad laminate industry in my country is relatively high. The total operating income of the top five companies between 2018 and 2019 has basically remained unchanged at about 69%; the business of the top ten companies The total revenue accounted for a significant increase. The CR10 of China's copper clad laminate industry in 2019 was 95.03%, an increase of 9.45 percentage points from 2018.

4. Enterprise layout and competitiveness evaluation of China's copper clad laminate industry

  Judging from the performance of my country’s CCL companies, the leading companies in the industry, led by Kingboard Laminates and Shengyi Technology, have much higher CCL business capabilities than other CCL companies. In 2020, Kingboard Laminates and Shengyi The output of CCL of Science and Technology was 138 million square meters and 103.8 million square meters respectively.

  From the perspective of the types of corporate copper clad laminate products, the copper clad laminate products of leading companies are also more inclined to high-end copper clad laminates, that is, high-frequency and high-speed copper clad laminates, halogen-free copper clad laminates, and so on.

5. Summary of the competition status of China's copper clad laminate industry

  From the perspective of the five-force competition model, the main components of PCB copper clad laminates include basic materials such as copper, resin, and glass fiber, and copper clad laminate companies often face the risk of fluctuations in raw material prices, so the upstream suppliers of the industry have weak bargaining power.

  Copper clad laminate is a basic material in the electronics industry, mainly used in the processing and manufacturing of printed circuit boards (PCB), and is a core material. Therefore, downstream customers in the copper clad laminate industry have strong bargaining power.

There are a large number of copper clad laminate manufacturing enterprises in my country, and the existing competition is fierce.

  In terms of substitution threats, low-end products are more threatening than high-end products.

  In addition, currently, high-end CCL multinational companies have also turned to the Chinese market. The rapid development of China's electronics industry has a strong attraction to new entrants, and the threat of potential entrants in the CCL industry is strong.