At present, there are so many orders for automotive flexible circuit boards (FPC) that it is difficult to receive. Advanced Institute of Flexible Electrode Materials is accompanying the progress

According to a report by Men Daily on January 13th, Liang Kangdi, Deputy General Manager of Hongxin Electronics R&D Center, stated that there are currently too many orders for automotive flexible circuit boards (FPCs) to handle, and their products have been used in multiple well-known new energy vehicle brands. Chairman Li Qiang revealed that the company's production capacity is continuously expanding and will increase research and development, as well as capacity expansion, for new energy vehicle and consumer electronics soft boards in the future.

FPC is a type of printed circuit board (PCB) widely used in the fields of communication, consumer electronics, and automotive. On traditional fuel vehicles, FPC is required for car lights, dashboard, steering wheel, etc. The electrification and intelligence of cars have opened up a broader market space for FPC, which is needed for power batteries, sensors, and cameras.

Taking batteries as an example, the previous new energy vehicle power battery collection line used a traditional copper wire harness solution. Compared with traditional harnesses, FPC flexible circuit boards have many advantages such as high integration, automated assembly, assembly accuracy, ultra-thin thickness, ultra flexibility, and lightweight. Especially in terms of automation and lightweight, this provides a cheap solution for battery companies to improve production efficiency and save unit production costs.

According to Wang Shaonan, an analyst at Minmetals Securities, with the gradual popularization of new energy vehicles, battery companies need to introduce and apply new materials in power batteries in order to reduce costs, against the backdrop of subsidy reduction and battery price decline. In recent years, through continuous improvement of processes, FPC manufacturers have further reduced the price of FPC for power batteries. With the joint promotion of power batteries and FPC manufacturers, the import environment of FPC in the field of power batteries in China has been greatly improved, and it is gradually being widely adopted by various power battery manufacturers. FPC is expected to be imported in large quantities.

On the other hand, in the raw materials of FPC, the cost of copper-clad laminates accounts for a high proportion. Yan Fan, an analyst at China Merchants Securities, said that the pressure of copper-clad laminate price increases in 2022 is expected to be eliminated.

From an investment perspective, FPC products for new energy vehicle power batteries require a certain verification cycle, and manufacturers who have already entered the supply chain of car and battery factories have a first mover advantage. In addition, FPC manufacturers that proactively layout downstream integrated products CCS can further enhance the value of bicycles, which is worth paying close attention to.

Among the above-mentioned companies, Gaolan Shares has a first mover advantage and is currently in a leading position in terms of business scale; Jingwang Electronics has shifted its strategic focus on the soft board business to the power battery market. In 2021, automotive boards accounted for about 30% of revenue, and downstream mainstream customer orders have initially increased. Starting from 2022, corresponding production capacity will accelerate expansion, and plans to set up a dedicated factory in Zhuhai to vigorously develop this business. Yidong Electronics is about to go public on the Shenzhen Stock Exchange, and Xiaomi has emerged as one of the top ten shareholders.

In addition, material and equipment suppliers are also expected to benefit from it, and Advanced Institute Technology is the first in China to integrateElectromagnetic shielding filmHongxin Electronics and Jingwang Electronics are enterprises that integrate the research and development, production, sales, and service of new materials such as conductive adhesive, ultra-thin flexible copper-clad laminates, and ultra-thin peelable copper foils; Oat Technology has provided customers with FPC testing equipment that is ultimately applied to automotive electronics.