Market Prospects for High-End PCBs (High-Frequency PCBs)

Market Prospects for High-End PCBs (High-Frequency PCBs)

printed circuit boards, known as the "mother of electronic products," are a crucial component of electronic components, and their application value in servers continues to grow. PCBs are used in nearly all electronic products, and their quality directly impacts not only their reliability but also the integrity of signal transmission between chips. In this new wave of hardware innovation, the PCB design industry is poised for growth and boasts a massive market size. Furthermore, the value of new, high-standard high-frequency PCBs, in particular, is nearly 5-6 times that of traditional, standard PCBs. Driven by the market, global PCB manufacturers have been comprehensively improving product quality and core competitiveness in recent years. Coupled with expanding market demand, the PCB industry's upward momentum is accelerating.

1. The boom in smart product innovation will drive continued growth in demand for high-frequency PCB R&D:

With the advent of the 5G era and the rapid development of the artificial intelligence industry, server chip upgrades are driving comprehensive upgrades in the PCB industry, placing higher demands on core performance indicators such as the number of layers, transmission loss, design flexibility, and impedance performance. The network communications and integrated circuit sectors are benefiting positively. 5G's high-speed transmission, massive connectivity, and low latency, coupled with the further development of AI technology, are injecting new momentum into a wider range of hardware innovation areas, including Industry 4.0, medical electronics, the Internet of Things, and automotive electronics. In the future, the application scenarios of smart hardware will gradually expand, and the widespread adoption of smart electronic products will be an inevitable trend, leading to a continued rapid growth in both the variety and quantity of devices. As a crucial component of electronic products, PCB R&D itself forms a fundamental part of hardware development. Therefore, the boom in end-product innovation will drive a continuous expansion in PCB R&D demand.

2. The increasing difficulty of high-frequency PCB R&D and the increasing demand for single hardware devices and high-frequency PCBs are driving exponential growth in demand for high-frequency PCB R&D:

With the exponential growth in the operating speed of integrated circuits, PCBs are increasingly developing towards high density, high precision, high reliability, multi-layer construction, and high-speed transmission (high-frequency PCBs). Their technological content and complexity are continuously increasing, and product structures are shifting towards high-tech products such as package-based, rigid-flex, and high-dissipation circuit boards (HDI). Furthermore, the increasing penetration and diverse functionality of smart hardware electronics are also driving a general increase in the demand for high-frequency PCBs per device. Therefore, alongside the increasing demand for hardware innovation and device-level R&D, the increasing difficulty of high-frequency PCB R&D and the growing volume of high-frequency PCBs used per device are driving exponential growth in demand. Insufficient high-frequency PCB R&D capabilities may further hinder companies' R&D innovation capabilities and efficiency, leading to strong demand for commercial high-frequency PCB R&D services.

3. The Artificial Intelligence Industry is Driving Upgrades and Transformations in the PCB Industry:

Functionally, PCBs serve as a connecting bridge within electronic components. In the server sector, PCBs are particularly trending toward high speed, high frequency, miniaturization, lightweight, and multifunctionality. For the computer and server industries, the high-speed, high-frequency 5G era and the surge in AI technology are placing even higher demands and standards on PCBs. The overall increase in communication frequencies and transmission rates requires greater computing power, and PCBs must ensure high-speed and stable operation, necessarily meeting the technical specifications of low dielectric constant, low dielectric loss factor, and low roughness. Therefore, the process requirements for PCBs in AI servers are far higher than those of traditional PCBs. Large-scale, high-layer count, high-order density, and high-frequency, high-speed PCBs will gradually become mainstream in the market.

4. PCB design is a crucial link in the PCB industry chain, operating in the upstream R&D phase.

The upstream PCB industry is closely linked to the downstream manufacturing phase, and both benefit from the innovation and development of the electronics industry. Consequently, in the manufacturing phase, PCBA (printed circuit board Assembly) is a key component. my country, as the world's largest PCB production base, has seen steady growth in PCB output value in recent years. The expansion of the domestic PCB industry into high-end sectors is driving the PCB design industry to a higher level. Technological innovations in downstream industries and national policy support will create demand for PCB product upgrades. The domestic mid-to-high-end PCB sector offers ample room for development in the future, directly driving the domestic PCB design industry to a higher level.

5. High-frequency PCBs surpass traditional PCBs in terms of material performance requirements and layer count.

Simply looking at the change in PCB layer count, AI models require increased computing power to manage ever-increasing amounts of data. Current mainstream server and storage packages typically have 6-16 layers. As we enter the era of large-scale commercial use of AI, high-end servers with 16 or more layers will become mainstream. Furthermore, as technological demands continue to rise, the number of PCB layers will continue to increase, and products with over 20 layers will gradually increase in market supply. During the AI training phase, servers typically use PCBs with more than 20 layers.

6. The PCB industry is rapidly catching up in China:

From the perspective of the PCB industry's development, developed countries such as Europe, the United States, and Japan started early, have mature industries, and enjoy significant competitive advantages. Data shows that before the 21st century, the United States, Japan, and Europe accounted for over 70% of global PCB production value. Since 2000, the Asian PCB industry has begun to rise comprehensively, with my country in particular leveraging its comprehensive advantages in resources, policies, and industrial clusters to fully develop its PCB industry. As the global industrial center shifts to Asia, my country has become a global PCB manufacturing center. Data shows that since 2006, my country has officially surpassed Japan to become the world's largest PCB production base. In 2022, the total output value of my country's PCB industry reached US$44.2 billion, accounting for 54.1% of the global total. In recent years, as more companies have increased their investment in technological research and development and industry, the cluster advantages of my country's PCB industry have become more pronounced. Many PCB manufacturers have established their own competitive advantages and bargaining power in various segments.

ONESEINE specializes in PCB reverse engineering, PCB copying, and chip decryption. The company also has an investment in a board factory specializing in quick prototypes and small- to medium-volume production of 1-32-layer high-frequency microwave and radio frequency sensing printed circuit boards. We specialize in producing high-frequency, high-precision, high-density, and environmentally friendly PCBs. Our products include high-frequency PCBs, Rogers, Taconic, F4B/Teflon, microwave and radio frequency boards, and specialty circuit boards.