SMIC international or “untie”, PCB industry to meet the Transformation Opportunity

Recently, it has been reported that the US government plans to relax the restrictions on SMIC and lift the ban on purchasing mature technologies. This means that the U.S. and other equipment and material supply chains may resume providing products to SMIC. Although the news has not been confirmed, the market has been optimistic about its business prospects.

PCB supply chain in the first half of 2021 will not appear off-season, and the second half of 2021 peak season situation will be almost stable. PCB factories are preparing to keep up with their shipments and keep growing. CCL and raw material supply chains are also ready to serve customers. Even indirect material factories, such as drills and pads, which provide standard consumables, are expected to explore opportunities for growth and change in these market conditions. A relevant person in the industry pointed out that unless the demand for high-end products is generally strong and there is a major turning point in the market, the overall operation in 2021 will not be weak.

The relevant supply chain industry pointed out that it is normal for the demand for all types of materials to increase sharply when the terminal demand is too high. However, this time, in addition to the booming market situation, the indirect materials industry such as 5g and AI can open up new opportunities for change, which is a new opportunity. In the past, market models with standard products as flagship products and competing with Chinese mainland manufacturers in price were gradually replaced by advanced customized product models.