Looking back at China's history, at every major turning point, there are always some places that bravely blaze a trail forward.
To recapture the lost three years, Zhejiang once again performed a magical operation, and many cities were confused! On December 6, a team composed of Zhejiang Provincial Department of Commerce and other provincial department heads were driving to the airport to begin a six-day trip to Europe. This European trip was the first group led by a provincial commerce department to go abroad. In the future, Zhejiang Province will organize more than 10,000 companies to participate in economic and trade activities abroad through charter flights, shared flights, flights and other modes.
Note the keywords: provincial departments, 10,000 companies, 6-day European trip.
Just imagine, in any province, who has the ability to organize 10,000 companies in a short period of time?
Just think about it, when some people are still lying flat or afraid to let go, which provincial department dares to take the lead in going overseas on a large scale to expand the international market?
Thinking about the big picture, when the cake becomes smaller, you only think about how to divide the cake. Who really wants to continue to make the cake bigger?
This is why Zhejiang can win the common prosperity demonstration area.
When it encounters difficulties, it never waits, relies, or wants. I have always thought of my own solutions, looked at the future, and seized every opportunity to make the cake bigger.
Since ancient times, it is no coincidence that talented people and wealthy businessmen have emerged in Zhejiang in large numbers.
Coincidentally, at 1 a.m. on December 9, Suzhou will provide charter flights and organize an investment team to go to Europe to carry out investment work. According to the news, this charter flight is also the first charter flight service for economic and trade cooperation in France and Germany organized by a Chinese prefecture-level municipal government since the outbreak of the epidemic in 2020.
Please note, charter flight.
According to reports, this charter service is led by the main person in charge of the Suzhou Municipal Bureau of Commerce, with a total number of more than 200 people. Among them, county-level cities and districts under Suzhou such as Zhangjiagang, Kunshan, Changshu, Taicang will also send 30 investment teams with more than 100 people. What is
doing?
to actively attract investment, maintain customers, and win orders. Go get back the lost time and opportunities quickly. This is the Suzhou that everyone is familiar with. Don't wait, don't rely, act quickly.
It’s not just Suzhou either. Nanjing, the capital of Jiangsu Province, has previously built an "international business flight" channel, and the commerce, finance, public security, immigration and other departments have worked together to provide one-stop services for local companies to go overseas.
Moreover, depending on the relevant policies, Nanjing’s foreign trade enterprises will be subsidized at a rate of no more than 50% for the transportation expenses and entry quarantine expenses incurred by foreign trade enterprises overseas for exhibitions, negotiations and other business activities. Entry and exit air tickets can be reimbursed up to 8,000 yuan. What is
for?
I am afraid that people will not dare to go out, so we must encourage them and create conditions to actively encourage them.
After all, time waits for no one, the situation waits for no one, and the economy and foreign trade wait for no one.
While many places are still waiting and watching, still hesitating, and still waiting, I have to say that Jiangsu and Zhejiang have already taken urgent action.
The measures taken by Jiangsu and Zhejiang provinces are undoubtedly a boost for business owners across the country, and everyone in the PCB industry is deeply encouraged by them.
Next, efforts will be made in many places. Just recently, Sichuan, Guangdong, Fujian, Hainan and other places have also taken active actions. I believe that the measures will not be smaller than those in Jiangsu and Zhejiang provinces, and there is a high possibility that they will catch up from behind.
After three years of epidemic, consumer electronics terminal demand has been weak for a long time, and many links in the industry chain have also been under pressure for a long time. When will the PCB industry pick up and how far is the inflection point of market demand? These are all issues that have been of great concern to the outside world.
In the past three years, PCB people have witnessed too much history, and we ourselves are also part of history. Now, we have finally entered a new stage, which is full of emotions.
Looking back on the past three years, although PCB companies have gone through a difficult time, it is undoubtedly a very precious three years for .
Why do you say that?
First of all, these three years have given companies time to re-recognize themselves.
Before 2019, and even before 2021, the overall mood of PCB people was optimistic, passionate, ambitious and even somewhat self-aggrandizing. On the one hand, orders are crazy and every order is full; on the other hand, every powerful factory is expanding or building a new factory. But later, orders dropped and prices fell, and many factories could no longer sustain themselves—especially the small businesses in Jiangxi that were no longer stable.
As the epidemic presses the slowdown button for the market, more and more PCB business owners are beginning to calm down. They invest more time to examine the company's true capabilities, carefully assess market risks, reflect on and redefine its development positioning.
Secondly, PCB companies have more rational thinking about how to spend money.
As early as 2021, some business owners said that the current competition in the PCB industry is too fierce. Companies are rushing to expand production and build factories, and investments are getting higher and higher, often worth billions. Spending money is the easiest thing. The problem is that there is only so much market demand. After the money is invested, where will the orders be? Where is the profit?
Until Ren Zhengfei spoke : " Taking survival as the most important program, edge businesses have shrunk and closed across the board, passing the chill to everyone. " These remarks are reasonable, and has verified the inner uneasiness of many business owners, and has also awakened the main business of more PCB companies.
This year, PCB/FPC companies that have expanded production in Jiangxi have generally completed the construction of the second phase of projects. However, there are problems such as lack of orders, slow release of production capacity, , project operations that do not meet expectations, and slowdown in capital return. Most companies have adjusted the progress of project construction accordingly. Many business leaders said that the current main task is to make up for the missing processes of existing projects.
The heads of PCB companies also said: "The company's subsequent development does not pursue output, but quality. The company must race against time to complete internal integration and release more space to produce high-end products."
Thirdly, the epidemic has made the PCB industry supply chain more reliable.
When the epidemic first broke out at the end of 2019, no one would have imagined that it would last so long. For the companies at that time, the main thing they had to face was to ensure the resumption of work, ensure smooth production, and deliver products to customers on time... Of course, this was also the challenge they would continue to face in the next three years. An epidemic has revealed all the congestion and difficulties in the supply chain of the PCB industry. The repeated "warnings" of shutdowns, "scares" of shutdowns, increased costs, delayed shipments and other obstacles have made companies fully realize that the smoothness of the industrial chain is the key to maintaining competitive advantages. At present, powerful enterprises are ensuring the stability and smoothness of the industrial chain and withstanding the impact of unreliable factors by "replenishing external links" in their production bases, improving their own production capabilities, making more "backups" for suppliers, and conducting moderate self-research on core components. In future operations, these are valuable assets that are difficult to take away from the enterprise.
Fourth, enterprises see the considerable returns that lean manufacturing and technology research and development bring to enterprises.
Since this year, due to last year’s high base and the impact of the epidemic on the economy, the shipments of consumer electronics such as mobile phones and IT have declined compared with last year, which has also led to weakened demand for corresponding PCB products. However, according to the list of the top 10 PCB companies in the world in the third quarter of 2022, we can see that even though the demand for in market segments is sluggish, the revenue and profits of leading companies are still strong. Among them, Zhiding Technology continues to be the champion in the Top10 rankings, and the revenue gap with the second place Xinxing Electronics has widened compared with the first half of the year. At the same time, benefiting from the continued advancement of the product portfolio and the effectiveness of the One ZDT strategy, the revenue of various downstream application products of Zhiding Technology has increased to varying degrees. This pattern has also been verified in Dongshan Precision and Shennan Circuit , which ranked third and tenth respectively.
IC carrier board is currently the fastest growing product. We say that “domestic replacement is the time” for . Looking at this Top10 list, Xinxing Electronics, which is second on the list, has an undoubted first-mover advantage in this field and is the company with the fastest year-on-year growth in PCB product revenue on the list. Benefiting from the substantial increase in demand for IC carrier boards, Xinxing Electronics' IC carrier board shipments in the first three quarters of 2022 increased significantly by approximately 74% in local currency compared to in the same period last year. At the same time, Xinxing Electronics is the only PCB company in the world with a gross profit exceeding US$1 billion. Nanya Circuit is the company with the highest gross profit margin of PCB products in the Top 10 list. It is also the only company in the Top 10 list with a gross profit margin of PCB products exceeding 40%.
In addition, the current demand for 's downstream applications, mainly automotive electronics, is growing strongly, driven by the continued advancement of automobile intelligence and the substantial growth in the production and sales of new energy vehicles . Although is a hot spot in the market, it is enviable, but it is a technical job that cannot handle without .
Nowadays, many PCB companies have chosen to base themselves on the present, and they are in urgent need of strength. I believe that many companies will one day stand in an enviable but difficult to surpass position.
Fifth, local governments are crossing the river by feeling the stones, constantly introducing new mechanisms to strengthen support for enterprises, and constantly urging themselves to unite with industrial chain enterprises and coordinate with enterprises within the region to form a strategic cooperative relationship of common advancement and retreat, to establish a mechanism of "unified linkage of large markets" .
Judging from recent news reports, it is not only enterprises in Jiangsu and Zhejiang provinces that are going global, but also government personnel. In the words of the relevant person in charge of the Zhejiang Provincial Department of Commerce, "In this special stage, with government departments accompanying us, companies will feel more confident and have less worries." I believe that in the future, this regional market linkage mechanism will exert greater power.
In summary, it can be said: Although the three-year epidemic has caused PCB companies to miss too many orders and money, it has brought more rational, calm and tenacious qualities to the company, as well as more capital and confidence to meet future challenges. Just like people, they will inevitably experience pain on the way to growth. When they fall, they get up and wash away the dust. We who are stronger must still move forward bravely.
At present, the country has made up its mind to adjust the pace, promote high-level opening up to the outside world, and make greater efforts to attract and utilize foreign investment. It must also persist in working hard to stimulate the entrepreneurial vitality of officials in the whole society, so that cadres dare to dare, local governments dare to venture, enterprises dare to do, and the people dare to pioneer.
There is no time to wait to win the market, so we must seize the business opportunities without delay! PCB companies must also become more aggressive. They must have a stronger sense of crisis, go all out to fight for the economy, and regain the lost three years. We have greater goals.
It is worth noting that in the three years since the epidemic, even if the demand for consumer electronics has declined, the pace of continuous innovation in electronic products has not stopped. As an important part of electronic products, PCB naturally benefits from the growth effect brought by innovation. Currently, multiple innovation directions are nurturing new opportunities for PCB growth, such as: packaging substrate , servers (new platform upgrades require higher-layer PCB boards, higher-grade CCL, lower profile copper foil ), automobiles (high current and high voltage require thick copper plates, domain controllers bring HDI incremental market), etc.
Today, the PCB industry will also undergo a major reshuffle, and the degree of economic vitality depends entirely on the ability to get ahead. Wei Wenxin is willing to work together with all PCB industry companies, roll up our sleeves and work towards the bright future.
Finally, I chose to end with "The True Colors of a Hero":
"I have endured it for three years, just waiting for an opportunity. I want to take a breath, not to prove that I am great, but to prove that I must get back what I have lost!"
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