In 2021, PCB margins were suppressed by the rising prices of CCL. But even if the CCL price is trending down in 2022, will PCB profitability improve? Automotive, substrate, high-density interconnect (HDI) and flexible printed circuit (FPC) could be important growth drivers.
According to the electronics industry consulting firm Prismark, global PCB production value increased in 2021. The markets widely expected the business to grow, hitting record-high growth in the past decade. Rising material costs offset this astonishing revenue growth and contributed little earnings growth. PCB sales growth could likely slow in 2022, reverting to a typical historical growth rate. Even if gross margin improves for PCB makers, the elasticity in the whole sector is may be limited.
Prismark forecasts substrate/HDI/FPC to grow. Our work suggests these technologies might outgrow the industry but expect the upside of FPC in the EV battery management system (BMS). Could China's local companies, which may only represent 4%/17%/17% of the global substrate/HDI/FPC market by 2021, gain a larger share in these high-end segments (outgrowing global peers)?
Insights from 25-plus Credit Suisse research teams around the world reveal how the IRA impacts clean energy, utilities, oil & gas, industrials, passenger and commercial transport, metals & mining, buildings, and renewable/battery global supply chain.
To assess the state of US franchise systems, we leverage franchise disclosure documents and other industry data sources to look at quantitative and qualitative factors including unit economics, franchisee to franchisee valuation metrics, interest in growth from franchisees, development incentives, category dynamics, investment costs and US franchise closures. Our focus is on US franchise brands, noting company-owned brands have more control over unit growth outlooks.
