Zhitong Finance APP News: Minsheng Securities released a research report stating that the PCB exposure equipment market has broad prospects, with downstream demand gradually recovering. According to Uresearch data, from 2019 to 2022, the market size of China's PCB circuit layer exposure equipment industry continued to rise, with a compound growth rate of approximately 20%. In 2022, the market size increased to approximately 7.6 billion yuan, a year-on-year increase of 16.9%. During the same period, the market size of China's PCB solder mask exposure equipment industry also grew steadily, rising from 1.3 billion yuan in 2019 to 2.2 billion yuan in 2022, with a compound growth rate of approximately 19%.
As a critical component in PCB production line upgrades and new constructions, exposure equipment—including inner/outer layer circuit and solder mask layer equipment—accounts for a high proportion of equipment expenditure. Downstream PCB demand is now gradually warming up: according to CoreMolding Technologies, since Q2 2024, the utilization rate of leading PCB clients has reached 80%-90% or higher.
AI Applications Drive Mid-to-High-End PCB Capacity Expansion and Precision Requirements
AI applications are strongly driving capacity expansion for mid-to-high-end PCBs, thereby increasing the precision requirements for exposure equipment. According to Prismark's forecast, in the next five years, packaging substrates, multi-layer boards with 18+ layers, and HDI will show strong growth momentum, with projected compound growth rates of 8.8%, 7.8%, and 6.2% from 2023-2028—far exceeding the industry average. Manufacturers are primarily expanding capacity in high-end HDI, SLP, carrier boards, and ABF carrier boards, where direct-write lithography has become the optimal solution for fine circuit processing.
In board-level packaging and high-end PCB manufacturing, direct-write lithography has fully replaced traditional lithography; in high-end display, advanced packaging, and third-generation semiconductor fields, it also shows a trend of replacing mask lithography. According to QYResearch data, global PCB direct imaging equipment sales reached approximately $813 million in 2021 and are expected to reach $916 million by 2023.
Southeast Asian Capacity Shifts Trigger New Equipment Investment Demand
PCB production capacity is accelerating its shift to Southeast Asia, bringing a new round of equipment investment demand. From January to August 2024, there were 110 new international PCB-related investment projects worldwide, with a total disclosed investment of 48.359 billion yuan. Among them, Chinese mainland enterprises initiated 37 new international PCB-related investment projects, with a total disclosed investment of 18.031 billion yuan—concentrated mainly in Thailand (27 projects) and Vietnam (4 projects). Leading domestic PCB manufacturers such as 臻鼎控股 (Kinsus), Dongshan Precision, Huguang Electronics, and Shenghong Technology plan to establish factories in Thailand and Vietnam.
Prismark predicts that by 2028, the PCB market size in Asia (excluding China and Japan) will reach $30.4 billion, with a compound growth rate of 8% from 2023-2028. Given that domestic PCB manufacturers expanding overseas may prioritize cooperating with domestic equipment suppliers, this will help Chinese PCB equipment companies expand into overseas markets.
Outlook and Risks
Overall, against the backdrop of global PCB manufacturers establishing factories in Southeast Asia and continuous technological upgrades, domestic PCB equipment manufacturers are expected to benefit from Southeast Asian capacity expansion and increased domestic market share. However, risks such as macroeconomic and policy fluctuations, technological breakthrough challenges for domestic equipment firms, slower-than-expected overseas progress, and intensified market competition should be noted.