Shenzhen South Circuit: The price of copper clad laminates is currently stabilizing at a high level

Recently, Shenzhen South Circuit said during a research visit that the company's main raw materials include copper clad laminates, prepregs, copper foils, gold salts, inks, etc., involving a wide range of categories. Affected by the international market for copper, gold, oil and other commodities, the prices of the company's main raw materials have shown a relatively obvious upward trend since the Spring Festival, and have been reflected in the company's financial aspects at the end of the first quarter and the second quarter. At present, the overall situation is stable at a high level.

The company's automotive electronics business mainly focuses on ADAS and new energy vehicles, providing various automotive electronic PCB products including those for high-power heat dissipation, high-speed and high-frequency, and integrated miniaturization solutions. It has now completed the certification and introduction of many strategic key customers at home and abroad.

Shenzhen South Circuit said that the company's PCB business revenue is mainly in the communications field, the revenue share of data centers and automotive electronics continues to increase, and the industrial control and medical fields maintain stable development. As the demand in the communications market gradually picks up, and the company vigorously develops markets such as data centers, automotive electronics, industrial control and medical, the company's PCB capacity utilization rate has continued to recover since the beginning of 2021. The current PCB capacity utilization rate has improved compared with the first half of 2021.

Shenzhen South Circuit said that data center, as one of the new areas that the company has entered and focused on in recent years, has made a significant contribution to the company's revenue, and the overall market space needs to be further developed by the company. With the increasing demand for information transmission speed and transmission capacity in the 5G era, data center hardware continues to develop in the direction of high speed and large capacity. It has higher requirements for PCB in terms of high-speed material application, processing density and design layers, which will promote the increase in product value. The company will continue to increase its efforts to expand the data center market with its existing management and technical advantages, and establish and deepen cooperative relationships with more customers.

After mid-to-late August 2020, affected by the external environment, the overall demand in the communications industry has been adjusted in the short term. Recently, the domestic and overseas communications markets have gradually shown a warming trend. In the long run, with the continuous development of 5G applications in enhanced mobile broadband, low-latency and high-reliability communications, and massive machine-type communication scenarios, there is still a wide range of demand in the 5G communications market. The company has been deeply involved in the communications field for many years and remains confident in the prospects of the communications market.

It is reported that the customers of Shenzhen South Circuit's packaging substrate business mainly include three types of customers: integrated device manufacturers, semiconductor designers, and semiconductor packaging and testing companies. The company's Wuxi high-end flip chip packaging substrate project has started the preliminary infrastructure construction. The Guangzhou packaging substrate project has currently completed the establishment of a wholly-owned subsidiary. After completing preliminary matters such as land bidding and auction, the two-phase project construction will be carried out in stages.