TPCA: Mainland China's PCB Output Expected to Grow to $26.79 Billion in 2024​​

According to the latest 2024 Mainland China PCB Industry Observation Report jointly released by the Taiwan Printed Circuit Association (TPCA) and the Industrial Technology Research Institute (ITRI), Mainland China's PCB industry accounted for approximately 30.5% of the global market share in 2023, with an output value of $22.98 billion, ranking second worldwide.

The report provides a detailed breakdown of Mainland China's PCB product composition: multilayer boards accounted for the largest share at 39.3%, followed by HDI boards (27.8%) and flexible PCBs (24.2%). In terms of application sectors, the communications industry led with a 28.9% market share, followed by automotive (26.9%), computers (23.8%), and consumer electronics (12.1%).

TPCA's review of the first half of 2024 noted that while revenue growth was widespread among listed PCB manufacturers in Mainland China, many experienced declines in gross and net profit margins, indicating significant profitability pressures amid market expansion. Small and medium-sized enterprises (SMEs) were particularly affected, with gross and net margins dropping by 0.8 and 1.8 percentage points, respectively. However, companies focused on networking, servers, and automotive markets demonstrated relatively stronger profitability.

The report emphasized that Mainland China remains the world's largest PCB production base, manufacturing 51% of global PCB output in 2023. In response to geopolitical shifts and global demand for supply chain diversification, PCB manufacturers have increasingly announced overseas expansion plans since late 2023, marking a new chapter in the industry's globalization. Thailand has emerged as the top investment destination due to its robust infrastructure, mature PCB supply chain, and favorable investment policies. By the end of 2024, 27 Mainland China/Hong Kong-based PCB manufacturers had chosen Thailand for new production facilities.

The Chinese government's strong policy support, including subsidies, tax incentives, and regulatory measures, has provided a solid foundation for the healthy development of the PCB industry. As domestic semiconductor self-sufficiency efforts accelerate, they are expected to further drive growth in substrate manufacturing. In the new energy vehicle (NEV) sector, Chinese-made NEVs already account for over 60% of the global market. Government policies not only include purchase subsidies and tax breaks but also encourage automakers to prioritize local supply chains, boosting market share for domestic PCB suppliers.

The widespread adoption of AI and rapid growth of NEVs have significantly increased demand for PCBs in AI servers and automotive electronics, making them key drivers of industry expansion.

Looking ahead to 2024, TPCA projects Mainland China's PCB output will rise to $26.79 billion, a 16.6% year-on-year increase, with global market share climbing to 32.8%. This positions the region to potentially become the world's largest PCB production hub by output value.