Further decline in global electronic machine market demand in 2022, PC, cell phone and TV markets, as well as continued decline in demand from the automotive industry. End customers adjust their inventories and reduce the supply chain, which has an impact on the PCB industry, PCB market growth is almost entirely driven by packaging substrates.

From the application side of the market, in 2022, PCB demand for PCs, TVs, games and consumer electronics generally declined. High inventories and declining demand hurt most market segments, especially in the second half of the year. Although the opening year of 2022 continued the high growth in 2021, but since the end of 2Q, a rapid deceleration. 2022, servers, new energy vehicles and the Apple supply chain PCB performance is brighter. In addition, the market for packaging substrates (especially FCBGA) was very strong in the first half of 2022, and demand began to slow down in the second half.

From a product category perspective, in 2022, the packaging substrate market growth of about 23%: advanced FCBGA substrates and other products to drive continued market growth, SiP and module substrates for further expansion of applications. HDI growth of about 2%: non-consumer applications to drive HDI demand, such as automotive, high-performance computers, high-speed networks and satellite communications demand rise. Multilayer market decline of about 4%: data centers and infrastructure need more advanced low-loss multilayer boards to achieve faster data rates; the automotive market needs more reliable high-current and high-heat circuit boards. fpc market growth of about 3%, mainly driven by automotive and professional applications.

For the PCB industry, 2023 will be a tough year. Economists predict a recession in 2023, inflation, war, energy crisis is likely to continue, weak demand and high inventory will continue to affect the global economy at least in the first half of 2023. In the electronics market, NBs and PCs are expected to decline a further 5% or more; the server market will grow in the low single digits at about 3%; and the cell phone market is likely to be flat. Shipments from Chinese smartphone suppliers are likely to grow slightly. Apple smartphone sales range is likely to remain at ±3%.

The PCB market will decline by 2% in 2023. Specifically, the packaging substrate market is likely to grow flat; single and double panels down 5%; MLB and FPC growth rate of -2% to 3%; HDI down 1%. If there is a recession in the second half of 2023, the PCB market could be worse, with a growth rate of -5% or less.

Circuit board manufacturing regional trends, some multinational PCB / packaging substrate companies have announced that they will invest in new factories in Malaysia, Vietnam or Thailand. These investments will change the future pattern of PCB production, especially after 2025. This is the issue that needs to be noticed.

So far, from a comprehensive and effective PCB industry infrastructure investment facilities, competitive (low) production costs, per capita output, labor and talent pool, experienced operators and engineers, and other elements, China is still the most cost-competitive PCB production base. Southeast Asia may have a substitution and absorption role in some products, but most circuit boards may still be manufactured in China.