Over the past 20 years of rapid development of China's PCB industry, a large number of Chinese companies have rapidly increased their scale and competitiveness, and have also gained a place in the global market. Among them, there are many outstanding local background leaders, and many foreign capitals based on mainland China, in the company's newly released 2012 Top 100 Electronic Circuit List, most companies are striving to maintain the pattern of stable development in the past. However, with the increasing proportion of China's PCB industry in the world, the growth rate of the PCB industry in the world is converging and the overall global demand is weak, Chinese PCB companies still need to seek further development space, and still maintain a relatively fast and strong. With the development trend, the challenges, difficulties and complexity faced have increased significantly. For the future development, I have some thoughts and practices for my peers to share and reference.
First of all, based on its own advantages, taking a large-scale development path seems to be the most choice for most companies. In the past, many successful cases that show that some companies are familiar with the market segment, through capital investment to continuously expand the manufacturing scale, and strive to obtain scale cost advantages, thereby further enhancing market share and competitive advantage. Many companies have achieved good development in the past by following this path, and they are continuing more firmly. More companies have joined in, hoping to achieve a breakthrough through such a simple model, but with the growth of market size. The slowdown or even stagnation of large amounts of investment and expansion of production will inevitably lead to oversupply. Disorder and fierce competition will lead to the general compression of corporate profits, and investment income has significantly narrowed or even not profitable. This trend in the industry has become more obvious and serious. In the future, we hope to seek qualitative development by expanding the scale, especially the expansion with a higher degree of homogenization. For all Chinese PCB companies, the road will become increasingly difficult.
The cost-leading scale development model is not easy to go, and the differentiated development model has become an inevitable choice. Some successful explorations are reflected in the continuous upgrading of its own technology, promoting product innovation, and entering the newer and more high-end product market. For example, in the ascending IC carrier board in China, the product market itself has a lot of room for growth and is a relatively promising development area. However, to form an effective and competitive global supply capacity, enterprises must not only invest in capital and equipment There is a very big threshold, and the long-term preparation of core key technologies and talents is also the key to success. For some PCB peers with weaker overall strength, it may be difficult to choose this product market temporarily; for most companies, it is formed in a certain The advantages of R & D and production in more subdivided fields, such as high-frequency material products, mid-to-high-end metal-based products, and special application PCBs in some special fields, are greatly improved by their own efforts. For all PCB manufacturing companies, To master the supply capacity of new technologies and new products requires long-term accumulation and unremitting pursuit in technology research and development. Being bigger is not the only option for Chinese PCB companies, but being stronger is an inevitable requirement for our long-term development. At the same time, I firmly believe that only continuous investment and improvement of R & D capabilities is the only way for Chinese companies to become stronger.
From the choice of Hongtai's own development path, we are also practicing a differentiated development model. Since the establishment of the company, it has worked hard to build rapid delivery capabilities in the field of model and small batches, made breakthrough innovations in the management and operation model, and avoided squeezing into a price competition pattern based solely on cost competition. It has been widely recognized in the market and customer base, and has also achieved in recent years, the one-stop technical service emphasized by the company is also leading the company's strategic direction based on the characteristic manufacturing foundation and gradually transforming into a technology service provider, hoping to go out of the development path of creating more value for customers. In the future globalized market structure, we deeply realize that only by accurately and firmly grasping customer needs and market trends, and cultivating and integrating the core capabilities to meet market needs, can we embark on the correct long-term development for the future the way. In this process, Chinese PCB peers should not just achieve how to survive in the competition of life and death, more thinking should be to find the most suitable and most beneficial position in the global competition landscape, and open mind from me Grow and seek a space for joint development and achieve greater success in integration and complementarity.
