TPCA: China's PCB Market Expected to Grow to US$26.79 Billion in 2024

A recent report, "2024 China Mainland PCB Industry Dynamics Observation," jointly published by the Taiwan Printed Circuit Association (TPCA) and the Industrial Technology Research Institute, reveals that China Mainland's PCB industry secured a global market share of approximately 30.5% in 2023, generating a substantial US$22.98 billion in output value. This positions the region as the world's second-largest PCB producer. 

The report delves into the primary product segments within China Mainland's PCB industry. Multilayer boards emerge as the dominant category, accounting for 39.3% of the total. HDI boards follow closely at 27.8%, and flexible boards claim a 24.2% share. 

In terms of application areas, the communications industry leads the pack with a 28.9% market share. The automotive industry follows closely at 26.9%, while computers and consumer electronics contribute 23.8% and 12.1%, respectively. 

China Mainland, the world's largest PCB production hub, is poised to manufacture 51% of global PCB products in 2023. However, amidst geopolitical shifts and growing global demand for diversified supply chains, mainland PCB manufacturers have initiated plans to establish overseas production facilities since late last year. 

Thailand has emerged as the top choice for these investments, thanks to its well-developed infrastructure, mature PCB supply chain ecosystem, and attractive investment incentives. As of the end of 2024, 27 mainland and Hong Kong-based PCB manufacturers have committed to investing in and setting up factories in Thailand. 

The Chinese government's robust support for the PCB industry, including a series of policies and regulations designed to foster growth, has created a favorable environment for the healthy development of PCB enterprises. As China accelerates its efforts to achieve domestic chip independence, the demand for substrate materials is expected to surge, further boosting the PCB industry. 

The burgeoning new energy vehicle sector, where Chinese-made vehicles account for over 60% of the global market, presents another significant opportunity for PCB manufacturers. Government policies, such as purchase subsidies, tax exemptions, and local supply chain prioritization, are driving increased demand for domestically produced PCB components. 

With the popularization of AI applications and the rapid development of new energy vehicles, the demand for PCBs related to AI servers and automotive electronics has increased significantly, which has become an important driving force for the growth of the industry. 

Looking forward to 2024, TPCA expects that the output value of PCBs in mainland China will grow to US$26.79 billion, with an annual growth rate of 16.6%, and the global market share will increase to 32.8%, which is expected to become the region with the largest PCB output value in the world.