The emergence of intelligent electric vehicles is a game-changer for the automotive industry, with far-reaching implications for the entire supply chain. One significant shift is the increase in the value of semiconductors onboard a single vehicle. In traditional fuel-powered cars, this figure was around 450, but it has now skyrocketed to over 700 in electric vehicles. For cars with more advanced features, the value of onboard semiconductors can be even higher. This shift is indicative of the major transformation occurring in the automotive industry as vehicles become increasingly connected and reliant on advanced sensing and processing capabilities.
Both automotive chips and components are being designed to have more functionalities packed into smaller unit areas, all while consuming less energy. This trend opens up significant growth opportunities for automotive semiconductors in the current development landscape. As a result, automotive PCBs are now entering a new era of rapid advancement.
PCB: The "Wired Radio" of Cars
PCBs, also known as Printed Circuit Boards, are fundamental elements in electronics that provide essential connectivity and support to a variety of electronic components. From smartwatches to supercomputers, these boards are found everywhere, playing a crucial role in numerous applications.
PCBs play an important role in the automotive industry as they are key components of all electronic systems. Whether it's engine control, electronic control systems, infotainment systems, driver assistance systems, GPS systems or lighting systems, PCBs are essential for ensuring the smooth functioning of these electronic systems. Without PCBs, these systems would not be able to communicate with each other, resulting in reduced efficiency and increased chances of malfunction. Therefore, the use of high-quality PCBs in various automotive electronic systems is crucial for improving performance and overall reliability.
The importance of PCBs in achieving optimal electrical performance cannot be overstated. They serve as carriers for power and signal transmission, making them critical components in various electronic systems. The design of PCBs is particularly crucial in the context of Advanced Driver Assistance Systems (ADAS), as high-reliability electrical connections and signal transmission are necessary for driver and passenger safety. Hence, PCBs play a pivotal role in ensuring the effectiveness of ADAS.
Undoubtedly, the rise in electric vehicles plays a crucial role in the expansion of PCBs.
China's new energy vehicle industry is booming with a significant rise in production and sales in the first half of 2023. The production and sales of new energy vehicles reached 3.788 million and 3.747 million units, respectively, resulting in an impressive year-on-year growth rate of 42.4% and 44.1%. The market share for the industry also increased, reaching 28.3%.
Interestingly, while demand for consumer electronics has slowed down, the automotive sector's demand for PCBs is rising significantly. This trend demonstrates the shift towards green energy and sustainable transportation and highlights the importance of PCBs as a fundamental component in the production of new energy vehicles. With this trend showing no signs of slowing down, it is expected that the demand for PCBs in the automotive industry will continue to grow and drive the growth of the manufacturing sector.
As per TrendForce's projections, the automotive PCB market is poised for rapid growth in the coming years, with a predicted 14% year-on-year increase in value to 10.5 billion by 2023. This will represent 13% of the total PCB industry's output value, up from 11% in the previous year. The potential market for automotive PCBs is expected to expand even further by 2026, with a projected value of 14.5 billion, representing 15% of the entire PCB industry's output value. With a CAGR of around 12% between 2022 and 2026, the growth potential of this sector appears to be considerable.
Electric vehicles have opened up a world of possibilities for society. There are many opportunities that arise from the development of these vehicles, including a reduction in pollution and greenhouse gas emissions. In addition to this, electric vehicles provide a more cost-effective transportation option for consumers, as they often require less maintenance and have lower fuel costs than traditional vehicles. The development of electric vehicles has also led to a surge in job creation, with new opportunities arising in the manufacturing, engineering, and installation of charging stations and other supporting infrastructure. Overall, the advent of electric vehicles has brought a great deal of excitement and potential to various industries, signaling a shift towards a cleaner and more efficient future.
Under the influence of electrification and intelligence, automotive PCBs are undergoing constant upgrades and iterations, reflecting the ongoing development trends.
With the continuous advancement in technology, electronic devices are becoming more complex, resulting in the need for PCBs to evolve towards high integration, high density, and multilayer configurations. Moreover, the widespread use of the 800V high-voltage platform necessitates the use of PCBs with high voltage resistance to ensure safe operation.
As per the recent TrendForce report, the value of printed circuit boards (PCBs) in pure electric vehicles surpasses that of traditional fuel-powered vehicles by approximately 5 to 6 times. Within the PCBs, the electronic control system holds the highest value, constituting around 50% of the total value. This indicates the criticality of the electronic control system as a pivotal component in electric vehicles.
As the industry continues to prioritize lightweight design, it is evident that electric vehicles are increasingly incorporating Flexible Printed Circuit Boards (FPCs). This advancement in technology is set to enhance the value of PCBs in the electronic control system. Additionally, the demand for higher transmission speeds, driven by vehicle intelligence and autonomous driving, is propelling the need for upgraded electronic and electrical architectures. Consequently, there is a widespread adoption of high-frequency, high-speed PCBs in the automotive industry. This intersection of advancements in lightweight design and the push for faster transmission speeds is reshaping the landscape of electronic control systems and propelling innovation in the field of PCB technology.
The demand for different types of printed circuit boards (PCBs) is driven by various technological requirements in different applications. For instance, high-frequency PCBs are necessary for millimeter-wave radar to ensure optimal performance. On the other hand, flexible printed circuits (FPCs) are essential for power batteries and cameras due to their bending capability. Advanced High-Density Interconnect (HDI) PCBs play a crucial role in LIDAR systems, Electronic Control Units (ECUs), and autonomous driving systems, as they enable the integration of fine circuitry. Overall, these technological advancements drive the need for diverse types of PCBs tailored to specific applications and functionalities.