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Chinese PCB Market Declines in 2009; Rebound in 2010
Monday, November 23, 2009 | PR Newswire

In 2008, the sales revenue of PCB products in Chinese market has achieved RMB 118.8 billion, and the single-sided printed board, double-sided printed board, multilayer printed board, and flexible printed board account for the 2.5%, 6.9%, 73.8%, and 16.8% of the total market, respectively.

The global financial crisis exploded in the fourth quarter of 2008 brought serious negative influences to the Chinese PCB industry, but, thanks to the high growth during the prior three quarters, the sales revenue of PCB products in China achieved the increase of 2.2% in 2008. To confront the economic crisis and guarantee the industry's healthy development, the Chinese government constituted the Readjustment and Development Plan of Electronic Information Industry, to prevent the industry's large-scale slide in some extent.

Frost & Sullivan forecasts that the Chinese market demands for PCB products reach RMB 97.2 billion with the decrease of 18.2% in 2009, and the market is expected to rebound in 2010 with the gradual emergence of incentive policies' effects and the recovery of consumers' confidence.

According to Shuguang Zhang, Consultant of Automation & Electronics of Frost & Sullivan, the demands for electronic products directly decide the development of PCB industry, and there are several hot topics in current market:

Firstly, the promotion of 3G. With the popularization of 3G technologies, the enormous market demands for the smartphone, the application terminal of 3G technologies, will be released gradually. At the same time, the appearance of netbook, which is remarkable for its low price and compact size, makes it possible for the notebook to penetrate into the middle/low end market fast.

All of the market evolution processes mentioned above closely relate to the prices adjustment of 3G communications. On the one hand, all of the three mobile communication operators in China wish to get the first-move advantages in the new domain of 3G market; on the other hand, they are unwilling to abandon the 2G market at once with the consideration of the existing stable revenue and previous large investment in it. It is just the ambivalence that makes the ending time of 3G introduction stage unclear. It is anticipated that it is the China Unicom that firstly triggers the large-scale price reduction among the three operators due to its least interests in 2G market.

Secondly, the spread of the digital TV related products. Under the condition that the government plays the leading role in the whole process, the technical upgrading status is the main determinant of its fast market expansion.



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