PCB board price increase on LED display

On July 1, 2019, Jianye issued a notice to adjust the price of the sheet. On July 3, Willibang Electronics also issued a price notice to adjust the copper. What is the frequent price increase of the upstream PCB as the LED display?

First of all, in recent years, environmental awareness has received more and more attention from people. While people are relying on steady economic development, they have more requirements for environmental protection construction. Building an "environmentally friendly" society has become an urgent need. The country has also adapted to the needs of the times and has intensified efforts to rectify the environment. In 2017, China comprehensively strengthened the environmental protection limit for the manufacturing industry. In this investigation, nearly 100 companies were forced to suspend business for rectification. The “Green Tax” implemented in 2018 also led to an increase in environmental protection costs for PCB manufacturers.

After the rectification of PCB manufacturers, some manufacturers who failed to meet environmental protection requirements were forced to withdraw from the market. Those who were fortunate enough to survive had higher requirements for environmental protection of raw materials on environmental issues. The increase in the cost of environmental protection costs will inevitably lead to an increase in the cost of the upstream industry chain. Some small and medium-sized PCB companies in PCB manufacturers have been forced to withdraw from the PCB market due to environmental failure. The original supply-demand balance relationship in the PCB market has been broken. The supply shortage in the PCB market will inevitably lead to direct price increases.

In the "Environmental Tax" implemented in 2018, the state has legalized environmental protection issues in the form of laws, and environmental monitoring of PCB manufacturers will also become a normalization, which will also promote the continuous increase of material prices of PCB manufacturers.

Secondly, on June 6, 2019, the Ministry of Industry and Information Technology issued 5G commercial licenses to China Telecom, China Mobile, China Unicom and China Radio and Television. The issuance of 5G commercial licenses marks China's entry into 5G commercial year. The arrival of the 5G era has brought a huge market blue ocean to consumer electronics, while huge demand for copper clad laminates has also been detonated. CCL is the basic material for PCBs. The rise of the 5G concept will drive the rise in the value of CCL, which in turn will drive up the price of PCBs.

Thirdly, the micro-spacing of LED displays has become an important trend in the development of the display industry in the future. In recent years, small pitch, COB, Mini LED, and Micro LED technologies have been continuously matured, and smaller pitch displays will be more and more. The development of smaller pitch LED displays will increase the incremental market for the LED display industry. The increase in the incremental market is bound to have a greater demand for PCBs.

With the development of smaller pitch displays, traditional PCB boards have been difficult to adapt to the development of smaller pitch displays, and some package manufacturers are also looking for PCBs that are compatible with smaller pitches. The PCB board that is compatible with the smaller pitch will also be very different from the traditional PCB. The process and raw materials will also have higher requirements than the traditional PCB board, which will also promote the PCB. Prices are rising.

According to industry insiders, the stage price increase of PCB, for high-end display products such as small micro-pitch, because PCB cost is relatively small, the impact is not large; but channel construction and LED cell board manufacturers should pay attention to the follow-up price Change to develop a corresponding coping strategy.