October 19, 2020
The overall situation of the IC substrate industry
The PCB industry can be divided into three categories: Rigid PCB, FPCB, and Substrate. The IC carrier board industry has experienced two consecutive declines in 2012 and 2013. The root causes are in two aspects: one is the decline in PC shipments, and CPU carrier boards are the main type of IC carrier boards and are the carrier boards with the highest unit price (ASP). ; Second, South Korean companies have drastically cut prices in order to suppress the development of IC substrate manufacturers in Japan and Taiwan. In particular, Samsung's Samsung Electro-Mechanics (SEMCO) has drastically cut prices by nearly 30%. This caused the global IC substrate industry market size to drop by 10.3% in 2013 to US$7.568 billion. However, all the hardships come and the IC substrate industry is expected to usher in growth in 2014 and 2015.
There are several driving forces for growth in 2014:
One is that MediaTek’s 8-core chip MT6592 is packaged in FC-CSP. The chip was launched in October 2013, and shipments are expected to increase significantly in 2014. As MediaTek enters the 28nm era, MediaTek will fully adopt FC-CSP packaging, followed by Spreadtrum in Mainland China. Secondly, the construction of LTE 4G network has begun, and the BASESTATION chip needs an IC carrier board.
Second, wearable devices have entered the market in large numbers, which will stimulate SiP module packaging and also require IC carrier boards. Fourth, the pursuit of ultra-thin mobile phones requires the chips to have good heat dissipation. The FC-CSP package has obvious advantages in heat dissipation and thickness. In the future, the main chips of mobile phones will be FC-CSP package or SiP module package, including power management and memory.
Third, the PC industry recovered in 2014. The high growth rate of tablet PCs in 2014 will no longer come, and will even decline. Consumers realize that tablet PCs can only be used as toys and cannot compare performance with PCs. The PC industry will recover. Finally, Samsung Electro-Mechanics (SEMCO) will no longer bargain price competition, because Apple's next-generation processor A8 will definitely be manufactured by Taiwan TSMC instead of Samsung Electronics. Even if Samsung Electro-Mechanics (SEMCO) cuts prices, it is impossible for Taiwan TSMC to give its orders.
The IC substrate industry can be divided into three camps: Japan, South Korea and Taiwan. Japanese companies are the pioneers of IC substrates, with the strongest technical strength and the most profitable CPU substrates. South Korean and Taiwanese companies rely on the cooperation of the industrial chain. South Korea has about 70% of the world's memory capacity. Samsung has always been Apple's foundry processors, and Samsung can also produce some mobile phone chips.
Taiwanese companies are stronger in the industrial chain. Taiwan has 65% of the world’s foundry capacity, and 80% of the advanced chips for mobile phones are manufactured by Taiwan’s TSMC or UMC. The profit margin of these foundries is much higher than that of traditional electronic products The gross profit margin is above 50%. Take MediaTek’s MT6592 as an example. The foundry is done by TSMC or UMC, the packaging is done by ASE and SPIL, the carrier board is provided by Kingsus, and the test is done by KYEC. These manufacturers are all located in the same factory area with extremely high efficiency.
Nowadays, mainland IC substrate companies are booming, and they are sprouting and developing like bamboo shoots after a rain. For example, HOREXS is one of the chip substrate manufacturers in mainland China. Since its establishment, it has focused on the production and R&D of chip substrates. It is currently developing in great strides. Its second factory is already under construction and is expected to be put into production in the next 1-2 years.
Boluo HongRuiXing Electronics Limited/HOREXS
The company was registered and established in 2009 and is a national high-tech enterprise. Mainly engaged in the development and production of high-end packaging substrates (IC carrier boards) (0.1-0.4mm FR4 pcb). The market covers Mainland China, Southeast Asia, North America, Europe and other countries and regions. Harmonicare uses scientific development strategies to continuously innovate and improve the production level and scale of packaging substrates. The company adheres to customer-oriented, customer requirements as the company's quality standards, and actively participates in customer product design, production, after-sales and other links, and works with customers to create the most suitable products for the market, and ultimately achieve common progress and common development. Product is the foundation and quality is the key. The company has passed ISO9001 quality system certification, ISO14001 environmental system certification, and UL material safety system certification.