Table of Contents
1、 Introduction
Printed circuit board (PCB), as a key component of electronic products, is widely used in various electronic devices. In recent years, with the rapid transformation of the automotive industry towards electrification, intelligence, and networking, the automotive PCB market has experienced explosive growth. Taiwan occupies an important position in the global PCB industry and has numerous PCB companies with strong technical strength and rich experience. Faced with the huge opportunities in the automotive PCB field, many Taiwanese PCB companies have been actively expanding into this emerging market. This report aims to conduct an in-depth investigation into the current situation, strategies, challenges, and future development trends of Taiwanese PCB companies entering the automotive PCB field, providing reference for relevant enterprises and investors.
2、 Current Status of PCB Industry Development in Taiwan
2.1 Industry Scale and Global Status
The PCB industry in Taiwan started early and has held a pivotal position in the global PCB market after years of development. According to the Taiwan Printed Circuit Association (TPCA), the total output value of Taiwan’s PCB industry will reach NT $485 billion in 2023, accounting for about 25% of the global PCB output value. In the global PCB enterprise ranking, Taiwanese companies have performed outstandingly, such as Zhending Technology, Xinxing Electronics, Huatong Computer, etc., which have long been at the forefront.
Taking Zhending Technology as an example, as one of the world’s largest PCB manufacturers, its revenue in 2023 exceeded NT $300 billion. Its products are widely used in various fields such as computers, communications, and consumer electronics, and have a strong influence in the PCB industry.
2.2 Technical advantages and product structure
Taiwanese PCB companies have invested heavily in technology research and development, accumulating a profound technical foundation. In the fields of high-density interconnect (HDI), multilayer boards, flexible boards, etc., Taiwanese enterprises are at the forefront of global technology. For example, Xinxing Electronics continuously innovates in the manufacturing process of HDI boards, and is able to produce ultra fine line HDI boards with a line width/line spacing of 25 μ m/25 μ m, meeting the high-precision requirements of high-end electronic products for PCBs. In terms of product structure, Taiwanese PCB companies have diversified their products, covering various types of products from ordinary multi-layer boards to high-end IC carrier boards. As a traditional advantage product, multi-layer boards lead the world in both production and quality; In terms of IC carrier boards, Taiwanese companies are also constantly improving their technological level and market share, gradually breaking the monopoly of other companies.
3、 Analysis of the Automotive PCB Market
3.1 Market Size and Growth Trends
With the deepening development of electrification, intelligence, and networking of automobiles, the dependence of automobiles on electronic systems continues to increase, and the size of the automotive PCB market is showing a rapid growth trend. It is predicted that the global automotive PCB market size will be 8.84 billion US dollars in 2022, and is expected to grow to 13.39 billion US dollars by 2030, with a compound annual growth rate of 5.6%.
In the field of new energy vehicles, due to their more complex electronic systems, the demand for PCBs is much higher than that of traditional fuel vehicles. The PCB usage of new energy vehicles is about 4-5 times that of traditional fuel vehicles, with a usage of 5-8 square meters per vehicle. Taking the Chinese market as an example, with the continuous increase in the penetration rate of new energy vehicles, the size of the Chinese automotive PCB market will reach 35 billion yuan in 2024, a year-on-year increase of 20%. It is expected to maintain high-speed growth in the coming years.
3.2 Technical Requirements and Product Features
There are significant differences in technical requirements and product features between automotive PCBs and regular PCBs. The working environment of automobiles is complex, and there are extremely high requirements for the reliability, stability, high temperature resistance, and vibration resistance of PCBs. For example, the PCB inside the engine compartment of a car needs to be able to work stably for a long time in a high temperature environment above 150 ℃, while also withstanding severe vibrations during vehicle operation. In terms of technology, automotive PCBs are developing towards high frequency, high speed, high power, and high density. With the upgrading of autonomous driving technology in automobiles, the requirements for signal transmission speed and accuracy of sensors such as millimeter wave radar and cameras have increased, requiring PCBs to have excellent high-frequency and high-speed performance. High power PCBs are used in automotive power drive systems, such as inverters, on-board chargers, etc., requiring them to be able to carry high currents and have good heat dissipation performance. The structure of automotive PCB products is also becoming more diversified. In addition to traditional multi-layer boards, HDI boards, flexible boards, rigid flex bonding boards, and metal substrates are becoming increasingly widely used in automobiles.
4、 The Strategy and Layout of Taiwanese PCB Enterprises Entering the Automotive PCB Field
4.1 Technical R&D investment and innovation
To meet the high requirements of automotive PCBs, Taiwanese PCB companies have increased their investment in technology research and development. Huatong Computer invests about 5% of its annual revenue in research and development, focusing on key technologies such as high-frequency and high-speed material applications, multi-layer board thinning, and high reliability processes. By collaborating with universities and research institutions to establish joint research and development centers, we can accelerate the transformation of technological innovation achievements. For example, Huatong has collaborated with National Chiao Tung University in Taiwan to develop a new type of PCB heat dissipation technology.
By adding special heat dissipation fillers to the board, the heat dissipation efficiency of the PCB has been effectively improved, meeting the heat dissipation needs of high-power electronic modules in automobiles. Xinxing Electronics focuses on the research and development of automotive IC carrier technology, introducing advanced lithography equipment and process technology to improve the packaging density and electrical performance of IC carriers. It has successfully developed high-end IC carrier products for automotive autonomous driving chips.
4.2 Capacity Expansion and Layout Optimization
In terms of production capacity, Taiwanese PCB companies are actively expanding and optimizing their layout. Zhending Technology has production bases in Chinese Mainland, Taiwan, Vietnam and other places. In recent years, it has continuously increased its investment in automobile PCB production capacity. In 2024, Zending Technology added two new production lines in the automotive PCB production base in Chinese Mainland, with the capacity increased by 30%. At the same time, enterprises carry out differentiated layouts based on the resource advantages and market demands of different regions. In areas with lower labor costs, the main focus is on expanding production capacity for mid to low end products; Layout high-end products and research and development centers in areas with high concentration of technical talents and convenient transportation. Xinxing Electronics has established an automotive PCB R&D center in Hsinchu Science Park, Taiwan, utilizing the abundant local technical talent resources to focus on the research and development of high-end automotive PCB products; The production base in Suzhou, Chinese Mainland, is mainly responsible for the large-scale production of high-end automobile PCB products to meet the huge demand of the mainland automobile market.
4.3 Customer Cooperation and Market Expansion
Taiwanese PCB companies actively establish cooperative relationships with global automotive component suppliers and vehicle manufacturers to expand the automotive PCB market. Through years of hard work, Jianding Technology has become a qualified supplier for well-known global automotive parts suppliers such as Bosch and mainland China, providing PCB products for automotive electronic control systems. Through cooperation with these high-quality customers, Jianding Technology has not only improved its product quality and technical level, but also further expanded its market share with the help of customers’ global sales network. Huatong Computer has established deep cooperation with multiple new energy vehicle manufacturers to provide customized PCB solutions according to customer needs. For example, Huatong Computer designed and produced a highly integrated and stable on-board electronic system PCB for a new energy vehicle enterprise’s new electric vehicle. From the design and development stage, Huatong Computer closely communicated with the customer to ensure that the product fully meets their technical requirements and production processes.
5、 Challenges faced by Taiwanese PCB companies entering the automotive PCB field
5.1 Intense Market Competition
The competition in the global automotive PCB market is extremely fierce. In addition to Taiwan enterprises, PCB enterprises from Japan, South Korea and Chinese Mainland have also deployed in this field. Mektec from Japan is a technology leader in the automotive FPC field, providing long-term supply to Japanese automotive giants such as Toyota and Honda, with a strong customer base and brand advantage. Samsung Motors in South Korea is also vigorously expanding its automotive PCB market, leveraging its accumulated technology and scale advantages in the consumer electronics PCB field. Shennan Circuit, Jingwang Electronics and other enterprises in Chinese Mainland have developed rapidly in recent years. While their technical level is constantly improving, they have taken a certain share in the domestic automotive PCB market by virtue of cost advantages and geographical advantages close to the local automotive market. Taiwanese PCB companies are facing enormous pressure when competing with these competitors for market share.
5.2 Strict Quality and Certification Requirements
The automotive industry has extremely strict requirements for product quality and safety, and automotive PCBs need to undergo a series of complex quality certifications. From raw material procurement to production process control, to final product testing, every step has strict standards. For example, automotive PCBs must pass reliability testing standards such as AEC-Q100 to ensure normal operation in various harsh environments. The product certification cycle is long, usually taking 1-2 years, which not only increases the R&D and time costs of the enterprise, but also puts extremely high demands on the quality control system of the enterprise. Some Taiwanese PCB companies miss market opportunities when entering new customer supply chains due to failed quality certifications or long certification cycles.
5.3 Fluctuations in raw material prices and supply chain risks
The frequent fluctuations in PCB raw material prices have a significant impact on the production costs and supply chain stability of Taiwanese PCB companies. Copper clad laminates, as the main raw material for PCBs, are influenced by various factors such as copper prices, resin prices, and market supply and demand. In recent years, copper prices have fluctuated sharply.
During the period of 2023-2024, copper prices rose by 30%, leading to a significant increase in the price of copper-clad laminates. The rise in raw material prices has increased production costs for enterprises and compressed profit margins. Meanwhile, the complexity and uncertainty of the global supply chain also pose risks to Taiwanese PCB companies. During the epidemic, logistics in some areas were disrupted and raw material supply was interrupted, affecting the normal production of enterprises. In addition, factors such as changes in the international political situation and trade frictions may also lead to increased supply chain risks, affecting the global layout and market expansion of enterprises.
6、 Prospects for Taiwanese PCB companies to enter the automotive PCB field
6.1 Market Opportunities and Growth Potential
Despite facing many challenges, Taiwanese PCB companies still have vast market opportunities and growth potential to enter the automotive PCB field. As the global automotive industry accelerates its transformation towards new energy and intelligence, the demand for automotive PCB market will continue to grow. Especially in emerging markets such as China and India, there is still significant room for improvement in car ownership. The rapid development of the new energy vehicle market has provided huge market growth for Taiwanese PCB companies. At the same time, the continuous innovation of automotive electronic technology, such as the application of higher-level autonomous driving technology and the continuous enrichment of intelligent cockpit functions, will drive the development of automotive PCBs towards higher end and more complex directions, and the added value of products will continue to increase. Taiwanese PCB companies, with their technological advantages and industry experience, are expected to occupy a larger market share in the high-end automotive PCB market, achieving rapid growth in revenue and profits.
6.2 Trends in Technological Innovation and Industrial Upgrading
In the future, Taiwanese PCB companies will continue to increase investment in technological innovation and promote the upgrading of the automotive PCB industry. In terms of material technology, we are developing new high-frequency, high-speed, high heat dissipation, and low expansion coefficient PCB materials to meet the higher requirements of automotive electronic systems for signal transmission speed, heat dissipation performance, and reliability. In terms of process technology, we continuously improve circuit accuracy, interlayer alignment, and product integration, and develop more advanced HDI and IC board manufacturing processes. For example, it is expected that in the next few years, Taiwanese companies will further reduce the line width/spacing of HDI boards to below 15 μ m/15 μ m, and increase the packaging density of IC carriers by more than 50%. Through technological innovation, Taiwanese PCB companies will enhance their product competitiveness and consolidate their position in the global automotive PCB market.
6.3 Enterprise Development Strategy Adjustment and Collaborative Cooperation
Faced with market competition and challenges, Taiwanese PCB companies will continuously adjust their development strategies and strengthen collaborative cooperation. Within the enterprise, optimize management processes, improve production efficiency, and reduce costs. By introducing advanced intelligent manufacturing technology, the production process can be automated and intelligent, reducing manual intervention and improving product quality stability. In terms of external cooperation, strengthen collaborative innovation with upstream and downstream enterprises. Establish long-term and stable cooperative relationships with raw material suppliers, jointly develop new materials, and ensure stable supply of raw materials; Deeply cooperate with automotive component suppliers and vehicle manufacturers, participate in the preliminary design of automotive electronic systems, and provide one-stop solutions from PCB design, manufacturing to system integration. In addition, Taiwanese PCB companies may also strengthen cooperation, integrate resources, jointly respond to market competition, and promote the overall development of Taiwan’s automotive PCB industry.
