New energy vehicles with fire FPC have manufacturers' orders full of customers including Ningde Times, Lulai and Xiaopeng.

According to media reports on January 13, Liang Kangdi, deputy general manager of Hongxin Electronic Research and Development Center, said that at present, there are too many orders for flexible board (flexible circuit board FPC), and its products have been used in a number of well-known new energy vehicle brands. Chairman Li Qiang revealed that the company's production capacity is continuing to expand, and will increase the R & D and production capacity expansion of new energy vehicle soft boards and consumer electronics soft boards in the future.

FPC is a kind of printed circuit board (PCB), which is widely used in the fields of communication, consumer electronics and automobile. On traditional fuel vehicles, car lights, dashboards, steering wheels and so on all need to use FPC, which opens up a broader market space for FPC, while power batteries, sensors and cameras all need to use FPC.

Take battery as an example, the traditional copper wire harness scheme was used in the new energy vehicle power battery collection line. Compared with the traditional wire harness, FPC flexible circuit board has many advantages, such as high integration, automatic assembly, assembly accuracy, ultra-thin thickness, ultra-softness, lightweight and so on, especially in automation and lightweight, which provides cheap for battery enterprises to improve production efficiency and save unit production cost.

Wang Shaonan, an analyst at Minmetals Securities, said that with the increasing popularity of new energy vehicles and the decline in subsidies and battery prices, battery companies need to introduce and apply new materials in power batteries in order to reduce costs. In recent years, through the continuous improvement of the process, FPC manufacturers have further reduced the price of FPC for power battery. under the joint promotion of power battery and FPC manufacturers, the introduction environment of domestic FPC in the field of power battery has been greatly improved, and it is gradually being widely adopted by various power battery manufacturers, and FPC is expected to be imported in large quantities.

On the other hand, the cost of copper clad laminate accounts for a high proportion of the raw materials of FPC, and China Merchants Securities analyst Luo Fan said that the upward pressure on copper clad laminate price in 2022 is expected to be eliminated.

From the investment point of view, the new energy vehicle power battery FPC products need a certain verification cycle, and the manufacturers who have entered the supply chain of car factories and battery factories have the advantage of first mover. In addition, FPC manufacturers who preempt the layout of downstream integrated products CCS can further enhance the value of bicycles, which is worth paying attention to.

Among the above-mentioned companies, Gaolan shares have the first-mover advantage and are currently in a leading position in the business scale; Jingwang Electronics has shifted the strategic focus of the flexible board business to the power battery market, with automobile plates accounting for about 30% of the revenue in 2021. Downstream mainstream customer orders have been initially released, and the corresponding capacity expansion will be accelerated from 2022, and plans to set up a special factory in Zhuhai to vigorously develop the business. Yidong Electronics is about to be listed on the Shenzhen Stock Exchange, and Xiaomi appears in the top ten shareholders.

In addition, material and equipment suppliers are also expected to benefit from this. Fangbang is the first enterprise in China to integrate the R & D, production, sales and service of new materials such as electromagnetic shielding film, conductive adhesive, extremely thin flexible copper clad laminate and extremely thin peelable copper foil. Hongxin Electronics and Jingwang Electronics are its customers; Oat Technology has provided customers with FPC testing equipment finally used in automotive electronics.