5G Drives High Growth in PCB Demand | HDI, SLP & Packaging Substrates Usher in New Development Era

5G Drives High Growth in PCB Demand | HDI, SLP & Packaging Substrates Usher in New Development Era

The commercial rollout of 5G is driving high growth in PCB demand, with the future focus shifting toward high-end HDI (High-Density Interconnect) boards, SLP (Substrate-like PCB), and IC packaging substrates. The vigorous development of 5G communications, combined with the high growth of the server industry, is significantly expanding demand for advanced communication boards.

This article analyzes the 5G-driven PCB market across four major downstream segments — communication infrastructure, automotive electronics, consumer electronics, and high-end domestic substitution — and highlights the technology capabilities that manufacturers such as **ONESEINE TECHNOLOGY CO.LTD** are deploying to capture these growth opportunities.

## 1. 5G Commercial Rollout Drives High Growth in Communication PCB Demand

The vigorous development of 5G communication and the high growth of the server industry are driving strong demand for communication boards. According to Prismark statistics, the PCB market size of the downstream communication industry was USD 11.692 billion in 2018, and is projected to reach USD 13.747 billion by 2022, representing a compound annual growth rate (CAGR) of 6.2% from 2017 to 2022.

### 1.1 5G Wireless Base Station PCB Market

Estimating the wireless base station segment specifically: in 2019, the global PCB market for 5G wireless base station construction was approximately RMB 13.365 billion, and is expected to reach a peak of RMB 45.163 billion in 2022 — more than a threefold increase in just three years. This explosive growth is driven by:

- **Increased base station density**: 5G operates at higher frequency bands (sub-6GHz and mmWave), requiring 1.1–1.5× more macro base stations than 4G, plus millions of small cells.

- **Higher PCB value per station**: 5G AAU (Active Antenna Unit) integration with Massive MIMO antenna arrays, high-frequency RF front-ends, and high-speed digital processing increases PCB value per macro station to approximately 3× that of 4G.

- **High-layer-count and high-frequency materials**: 5G base station boards routinely use 16–32+ layer constructions with controlled impedance, low-Dk/low-Df high-frequency laminates, and high-Tg halogen-free materials.

Manufacturers with advanced high-layer-count and high-frequency board capabilities — including **ONESEINE TECHNOLOGY CO.LTD**, which produces up to 32-layer boards with high-precision impedance control and mixed-dielectric (high-frequency + FR-4) constructions — are well-positioned to serve the 5G communication board market.

### 1.2 Server PCB Market Expansion

The explosive growth of the server market in 2018 drove strong demand for high-layer-count boards. In the future, 5G construction will further expand server demand — as 5G networks generate exponentially more data traffic, requiring more data center processing and storage capacity — and promote server product upgrades toward higher-speed interfaces (PCIe Gen 4/5, 100G/400G Ethernet) and higher-density architectures.

The server PCB market is expected to continue expanding, with key requirements including:

- High-layer-count backplanes (20–40+ layers) with controlled impedance

- High-speed low-loss materials supporting 25G–112G SerDes

- Large-format boards (up to 24×36 inches or larger) for server motherboards and switch line cards

- High-density interconnect (HDI) for advanced processor and GPU boards

Communication board manufacturers are expected to see considerable revenue growth over the next 2–5 years. Key companies to watch in the 5G base station and terminal segment include Shennan Circuits, Shengyi Technology, WUS Printed Circuit (Hudian), and Chongda Technology.

## 2. Automotive Electrification and Intelligence Bring New Growth to Automotive PCB Market

The output value of automotive PCBs was USD 7.6 billion in 2018. It is expected that the global automotive PCB output value will reach USD 10.171 billion by 2023, with a CAGR of 6%.

Breaking down by vehicle type:

- **Traditional internal combustion engine (ICE) vehicles**: PCB output value is expected to decline to USD 4.149 billion by 2023, with a CAGR of −5%, as the global auto fleet shifts toward electrification.

- **New energy vehicles (NEVs / electrification)**: The incremental PCB output value from vehicle electrification is expected to reach USD 5.437 billion by 2023, with a CAGR as high as 23.61% — the fastest-growing segment in automotive PCB.

- **Intelligent driving / ADAS**: The PCB market for advanced driver assistance systems and intelligent driving electronics is expected to grow at a CAGR of approximately 10.54%, driven by radar (77GHz mmWave), camera, LiDAR, sensor fusion, and domain controller electronics.

### 2.1 Why NEVs Need More PCB

New energy vehicles require significantly more PCB content than traditional ICE vehicles, including:

- **Battery Management System (BMS)**: Multi-layer PCBs with precise current sensing and high-voltage isolation

- **Motor Drive / Inverter**: Thick-copper PCBs (2oz–6oz) or metal-core PCBs for high-current power stages

- **On-Board Charger (OBC)**: High-power, high-efficiency PCB with thick copper and thermal management

- **DC-DC Converters**: High-frequency switching power supply PCBs

- **High-Voltage Distribution Units**: Heavy copper busbar-style PCBs

The production threshold for safety-related automotive PCBs (AEC-Q200 qualified components, IATF 16949 certified manufacturing, PPAP qualification) is higher, and the domestic market has fewer qualified competitors — meaning manufacturers with automotive-grade capabilities have substantial future profitability potential. Key companies to watch include WUS Printed Circuit (Hudian), a leader in traditional automotive safety control electronics, and Shennan Circuits, which already supplies motor control system PCBs for new energy vehicles.

## 3. Consumer Electronics Innovation Creates New Growth for HDI and FPC

In recent years, consumer electronics has continued to innovate, creating new growth space for consumer electronics PCBs. According to Prismark statistics, the PCB output value for consumer electronics was USD 24.171 billion in 2018, and is expected to reach USD 28.87 billion by 2022, with a CAGR of 4.2%.

### 3.1 Smart Wearable Devices Drive FPC Demand

In the segmented field of smart wearable devices, the market is experiencing explosive growth. Shipments reached 135 million units in 2018 and are expected to reach 205 million units by 2023, with a CAGR of 23% from 2018 to 2023. Smartwatches, fitness bands, wireless earbuds, and AR/VR devices all rely heavily on **flexible printed circuits (FPC)** and **rigid-flex boards** to fit compact, curved, and dynamically moving form factors.

### 3.2 5G Smartphones Drive SLP and High-End HDI Demand

5G is also becoming a major new growth point for smartphones. It is expected that 5G phone shipments will reach 725 million units by 2023, driving demand for high-end PCBs — particularly **SLP (Substrate-like PCB)** and **high-end HDI** boards.

The shift to 5G increases PCB content and complexity in smartphones because:

- **5G RF front-end modules**: More antennas, more PA/LNA/switch components, and mmWave antenna-in-package (AiP) structures require higher-density interconnect.

- **LCP and MPI FPCs**: 5G mmWave antennas use LCP (liquid crystal polymer) or modified polyimide (MPI) flexible substrates for low loss at high frequencies.

- **SLP adoption**: High-end smartphones use SLP — a finer-line HDI technology with line/space down to 30/30μm or finer — to accommodate more components in the same board area, replacing traditional any-layer HDI in flagship models.

- **Higher layer count**: 5G phone mainboards have increased from 8–10 layers to 10–14 layers, using any-layer HDI or SLP constructions.

Manufacturers with FPC as their main business, combined with SLP and high-end HDI production capacity, will usher in new revenue growth. Key companies to watch include domestic FPC leader and SLP mass-production-capable Zhen Ding Holdings (Pengding), domestic FPC major manufacturer Dongshan Precision, and Zhongjing Electronics, which has potential small-batch high-end HDI mass-production capability.

In the HDI manufacturing space, **ONESEINE TECHNOLOGY CO.LTD** has mature production technology for second-order and third-order HDI boards, as well as multi-layer any-layer interconnect (any-layer HDI) — positioning it to serve the growing demand for high-density consumer electronics and communication module boards.

## 4. China's High-End PCB Domestic Substitution Opportunity

China currently focuses on low-end and mid-end PCB products, but is expected to achieve domestic substitution in the high-end product market. High-end PCB product manufacturers have good prospects for future development.

The global high-end PCB product market — including high-layer-count communication boards, high-frequency RF boards, SLP, advanced HDI, and IC packaging substrates — is currently dominated by overseas companies (particularly Japanese, Taiwanese, and US manufacturers). However, due to trade frictions and the strong demand from Chinese independent electronic brands (Huawei, Xiaomi, OPPO, vivo, BYD, etc.), the market prospects for high-end PCB manufacturers in China are promising.

By broadening financing channels, increasing production R&D investment, and continuously expanding production capacity, domestic leading PCB companies will continue to increase their market share in global high-end PCB products. Domestic manufacturers including **ONESEINE TECHNOLOGY CO.LTD** are investing in advanced capabilities — 32-layer board production, high aspect ratio drilling (26:1), thick copper (up to 15oz), high-frequency mixed-dielectric constructions, and advanced HDI — to compete in the high-end market.

Key companies to watch in the high-end substitution theme include Zhen Ding Holdings (FPC and SLP), Zhongjing Electronics (high-end HDI), and companies with packaging substrate mass-production capability including Shennan Circuits, Chongda Technology, and Xingsen Technology.

## 5. ONESEINE TECHNOLOGY CO.LTD: Capabilities and Product Portfolio

**ONESEINE TECHNOLOGY CO.LTD** is a PCB manufacturer with a broad product portfolio covering multilayer boards, impedance-controlled boards, high-frequency boards, high-Tg thick-copper boards, buried/blind via boards, aluminum substrates, mixed-dielectric boards, HDI, rigid-flex boards, special substrates, and customized printed circuit boards for specific requirements.

The company's key manufacturing capabilities include:

- **Maximum layer count**: 32-layer board production technology

- **Aspect ratio**: Board thickness-to-hole-diameter ratio up to 26:1

- **Maximum board thickness**: 7.0mm

- **Maximum copper thickness**: 15oz (heavy copper for power electronics)

- **Minimum mechanical drilling**: 0.10mm

- **Minimum laser drilling**: 3mil (for HDI microvias)

- **Minimum line width / spacing**: 2.0 / 2.0mil (50/50μm)

- **HDI technology**: Mature second-order / third-order HDI and multi-layer any-layer interconnect production technology

- **Special process experience**: Thick boards, thick-copper boards, mixed-pressure / mixed-dielectric boards, high-frequency boards, high-Tg boards, high-precision impedance control boards, backplanes, and embedded capacitance / embedded resistance boards

With these capabilities, ONESEINE TECHNOLOGY CO.LTD is well-positioned to serve the 5G communication, server, automotive electronics, consumer electronics, and industrial control markets — particularly as the industry shifts toward higher layer counts, higher density, higher frequency, and greater manufacturing complexity.

## 6. Conclusion

The 5G era is driving high growth in PCB demand across multiple downstream segments. Communication infrastructure (5G base stations and servers) is the primary growth engine, with the 5G base station PCB market expected to peak at RMB 45.163 billion in 2022. Automotive electrification and intelligence are creating a fast-growing automotive PCB market — with NEV PCB growing at 23.61% CAGR. Consumer electronics — particularly 5G smartphones and smart wearables — is driving demand for SLP, high-end HDI, and FPC. And China's high-end PCB domestic substitution trend creates long-term opportunities for domestic manufacturers with advanced technology capabilities.

For PCB manufacturers, the key to capturing these growth opportunities lies in advanced technology investment: high-layer-count board capability, high-frequency and high-speed material processing, HDI and any-layer interconnect, thick copper for power electronics, rigid-flex and FPC capability, and automotive-grade / high-reliability manufacturing. Companies such as **ONESEINE TECHNOLOGY CO.LTD**, with their broad technology portfolio and investment in high-end processes, are well-positioned to benefit from the multi-year 5G-driven PCB growth cycle.

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