EMS electronics manufacturing foundry industry(electronics manufacturing expo news)

05 Aug 2019

With the announcement of the issuance of 5G commercial licenses by the Ministry of Industry and Information Technology, China has officially entered the 5G electronics manufacturing expo era. Many industries, including mobile terminals, Internet of Things, smart homes, smart cities, and automotive electronics, will achieve leapfrog growth due to the arrival of 5G.

In the production process of electronic products represented by smart terminals (including smart phones), communication network devices, and automotive electronics, they all undergo three major processes of design, parts procurement, and manufacturing, all of which require PCBA. EMS companies are expected to take advantage of 5G Dongfeng to usher in high growth market opportunities.

5G era smart phone change tide

The 5G network will usher in large-scale commercial use, and the emergence of new terminals and new applications will drive a wave of electronics manufacturing expo exchanges, and smartphone shipments are expected to stabilize. According to I H S forecast, the global smartphone market will maintain a small growth in 2019, and emerging markets such as Southeast Asia and Africa will continue to grow; mature markets such as North America, Europe and China will continue to decline slightly, with demand for replacement. The 5G intelligent machine is expected to have an overall shipment of about 5 million units in 2019, all of which are mainly flagship models, and will enter a rapid growth track in the second half of 2020. At present, global mainstream mobile phone manufacturers such as Samsung, Huawei, OPPO, VIVO, and Xiaomi have released 5G electronics manufacturing expo mobile phones. From the point of view of the value of stand-alone machines, the power consumption of mobile phones in the 5G era has increased, the difficulty of heat dissipation has increased, and the unit price of processing is expected to increase simultaneously.

According to market information, Guanghong Technology's average processing price for the top five models of Dongguan Huabei sales are 18.02 yuan/set, 19.62 yuan/set, 23.11 yuan/set, 23.08 yuan/set, and the unit price is quite different; meanwhile, since 2014 In the first half of 2017, the price of Guanghong's mobile phone electronics manufacturing expo products increased year by year, with 20.78 yuan/set, 22.37 yuan/set, 23.05 yuan/set and 24.68 yuan/set respectively. The volume and price have risen, and the space of the smartphone EMS in the 5G era is considerable.

Smart travel

Benefiting from the 5G technology drive, the automobile industry, which is the “big head” of China's commodity consumption, is expected to emerge from the bottom of the valley after a long period of low valleys, and it will start a strong rebound with the help of 5G Dongfeng.

According to Miao Wei, Minister of the Ministry of Industry and Information Technology, the Internet of Vehicles is expected to become the largest and the earliest application of 5G. Automotive electronics is considered to be the electronics manufacturing expo booster for the future development of the driving electronics industry. With the continuous landing of super-automatic driving technology, the Internet of Vehicles is expected to drive the rapid development of automotive electronics. According to PricewaterhouseCoopers data, from 2000 to 2010, the proportion of automotive electronics in total vehicle costs increased from 20% to 30%; in 2020, it is expected to reach 35%; in 2030, it can reach more than 50%. It is expected that the value of automotive electronic equipment in the low-end, mid-to-high-end vehicles will increase in the future, and the market potential is huge.

Taking Guanghong Technology as an example, the company's automotive electronics products are mainly for driving recorders, T-BOX and some in-vehicle electronic products. Established Jiaxing production base in 2015 and launched the electronics manufacturing expo automotive electronics industry. In 2017, it achieved a major breakthrough. In the same year, automotive electronics revenue reached 105 million yuan, a year-on-year increase of 289%. The automotive electronics products produced were eventually sold to Geely, Beiqi, etc. Terminal brand. In addition, the company has successfully developed Russia's ATOL as a corporate customer, cutting into the North American and European markets, ensuring continued growth in performance.

New opportunities in the EMS industry

During the planning and construction period of 5G development, the demand for antennas and radio frequency, small base stations, PCBs, fiber optic cables, and optical modules has increased dramatically. The upstream demand will drive EMS manufacturing companies to usher in new market opportunities.

1) Base station antenna and radio frequency: The radio frequency is mainly composed of a plurality of radio frequency devices, which are mainly responsible for converting electromagnetic wave electronics manufacturing expo signals and radio frequency signals. The base station antenna is an information energy converter between the base station equipment and the end user. The demand is mainly from operators and equipment vendors. The estimated price and price of the antenna are increased due to the demand and technical structure upgrade.

2) Base station PCB: In the 5G era, the antenna integration requirement is significantly higher. AAU needs to integrate more components in a smaller size, and requires more layers of PCB technology. Therefore, the PCB usage of a single base station will increase significantly. The barriers have been comprehensively improved. Moreover, the transmission power of the 5G base station is greatly expanded compared with the 4G, and the processing difficulty of the PCB electronics manufacturing expo substrate is required to be fully upgraded. It is expected that by 2026, the PCB market space required for building base stations will be approximately $29.2 billion.

3) Small base station: The small base station signal transmission coverage radius is small, suitable for small range accurate coverage, as an effective supplement of the macro base station. According to the SCF forecast, the composite growth rate of small base station construction from 2015 to 2025 is 36% to 70 million electronics manufacturing expo stations. It is conservatively estimated that the market size of 5G small base stations is expected to exceed the market value of 100 billion yuan.

4) Fiber optic cable: A dense network of 5G base stations requires a large number of fiber optic cables to be applied, which places greater demands on optical networks and higher standards. According to the CRU report, global and Chinese electronics manufacturing expo fiber optic cable demand is expected to reach 617 million core kilometers and 355 million core kilometers by 2021. However, the demand for fiber optic cable for 5G construction has grown steadily in the short term.

5) Optical module: The main function of the optical module is to realize the conversion of photoelectric signals in the optical electronics manufacturing expo communication network, which mainly includes two parts of the optical signal transmitting end and the receiving end. In the initial stage of construction, 450,000 base stations will be built each year, and CRAN will be deployed. The new requirements for the pre-transmission network, access layer, convergence layer and core layer are 900,000, 180,000, 70,000 and 33,000 respectively.

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