The key point of the 5G era: new opportunities for PCB factories and the copper-clad sheet industry!

Release time:

2023-04-25


Driven by user needs and national investment, 5G leads a new era of PCB communication development. As early as in the 4G era, global mobile Internet traffic exploded. According to statistics from the Ministry of Industry and Information Technology of China, domestic mobile Internet traffic has doubled year after year, much higher than the global average growth rate of 15%. speed. Application scenarios such as high-definition video, Internet of Things (Internet of Vehicles), and VR/AR are gradually emerging, which brings strong demand for enhanced mobile broadband, massive connections, and low-latency and highly reliable communication technologies. As a breakthrough mobile communication technology, 5G will lead a new era of communication development driven by the two wheels of user demand and national investment.

  Driven by user needs and national investment, 5G leads a new era of PCB communication development. As early as in the 4G era, global mobile Internet traffic exploded. According to statistics from the Ministry of Industry and Information Technology of China, domestic mobile Internet traffic has doubled year after year, much higher than the global average growth rate of 15%. speed. Application scenarios such as high-definition video, Internet of Things (Internet of Vehicles), and VR/AR are gradually emerging, which brings strong demand for enhanced mobile broadband, massive connections, and low-latency and highly reliable communication technologies. As a breakthrough mobile communication technology, 5G will lead a new era of communication development driven by the two wheels of user demand and national investment.

  Mobile communication cycles every ten years. After China has experienced "2G follow-up, 3G breakthrough, and 4G synchronization", the 5G era is expected to lead the world.

  The construction of 1G~4G mobile communication in China lags behind the world, but it continues to make efforts to catch up. In the 4G era, the TDD communication standard dominated by my country will become the mainstream standard of 5G. In the 5G era, my country has taken the initiative to set up the IMT-2020 promotion group, mobilizing the power of the entire industry chain, actively promoting the development of 5G technical standards, and is expected to achieve both technology and market leadership.

  In 2018, China will enter a key inflection point in 5G promotion, and the timing of commercial use is expected to exceed expectations

  The China IMT-2020 promotion group divided the 5G test plan into two steps: technology research and development test (2015~2018) and product research and development test (2018~2020). In 2017, China built the world's largest 5G field test base in Huairou, Beijing. On January 16, 2018, the China IMT-2020 Promotion Group released the "Specification for the Third Phase of 5G Technology R&D Test". , and has completed the outfield construction in Shanghai and Shenzhen. We predict that domestic large-scale 5G pilot projects will be launched in the second half of 2018, and enter the trial commercial period in 2019, and the timing of the issuance of 5G official commercial licenses may exceed expectations.

  Taking history as a mirror, looking forward to the future pattern of the 5G industry chain from 3G/4G

  The upgrade of 5G network and terminal software and hardware will bring about profound changes in the industrial chain and industry structure. Operators: The right to speak is tilted towards China. In the 3G/4G era, the global operator market continues to integrate and concentrate. In the 5G era, mainstream operators such as Vodafone and China Mobile are strong, and Chinese operators will have the right to speak globally. Main equipment manufacturers: Leading the industry chain strongly, upstream devices usher in great opportunities. Huawei, ZTE, Ericsson and the new Nokia are four pillars. In the 5G era, Chinese manufacturers will further squeeze the market share of European counterparts, bringing opportunities for localization of upstream devices. RF devices: There are many 4G participants, and the gross profit margin of the traditional RF device industry is falling. Due to the application of Massive MIMO in 5G, 2/3 of the added value of the antenna will be transferred to the PCB board where the antenna oscillator is installed. According to "Jeddobang", a global PCB proofing brand service provider, the combination of ultra-dense networking technology will bring new opportunities for PCB and high-frequency copper clad laminate materials. Optical device industry: With the fluctuation of 3G/4G cycle, the overall concentration of the industry continues to decrease. In the 5G era, the cycles of operator network investment and Internet data center investment are superimposed, and Chinese manufacturers have sprung up. Optical fiber and cable industry chain: presenting a pyramid-shaped industry structure, manufacturers with integrated production capacity of optical rods, optical fibers and optical cables will continue to maintain their competitive advantages, and the industry concentration will further increase.

  Investment Advice

  We predict that the large-scale construction of 5G may start in 2019~2020. The scale of 5G investment is expected to exceed that of 4G, and the capital expenditure of operators will continue to rise after 2019, and will continue to increase as the demand for 5G market increases. We recommend paying attention to, 1) 5G leader: ZTE; 2) 5G radio frequency leader: Shengyi Technology; 3) 5G optical communication: FiberHome Communications, Zhongji InnoLight, Xinyisheng, pay attention to Accelink Technology, Hengtong Optoelectronics; 4) 5G wireless radio frequency: Shanghai Electric Power Co., Ltd. (PCB), Shennan Circuits (PCB), Dongshan Precision (filter/antenna), Sanan Optoelectronics (PA compound semiconductor), Fei Rongda (antenna oscillator).

  risk warning

  The progress of 5G commercial use is less than expected, and the market is at risk of systemic fluctuations.