Application Watch: FR-4 PCBs for security products

Single-, double-sided, multilayer and HDI boards for video surveillance, access control and intruder alarms make up the range in China's FR-4 PCB line.

China manufacturers of FR-4 PCBs are maximizing opportunities in security products, and continue to target uses in video surveillance, intruder alarms and access control. The market remains relatively small with about 10 percent share of the board's production value locally and worldwide, but is broadening at a steady rate. Besides greater penetration in the transport, retail, health and education sectors, there is the Internet of Things that is driving the security segment. Sales of equipment are forecast to total $42 billion by 2020, according to Memoori, from $27.25 billion in 2015.

Video surveillance products are still the biggest demand driver, accounting for about 54 percent of the market, followed by intruder alarms with 23.5 percent and access control 22.5 percent. For these applications, domestic suppliers offer single-, double-sided, multilayer and HDI FR-4 PCBs with 1.6mil minimum line width and spacing. In the multilayer category, the highest count that they can achieve surpasses 60 layers. Such specifications can meet the requirements of security devices and equipment.

Shenzhen X-Mulong Circuit Co. Ltd, which allocates roughly 10 percent of yield for the security sector, can provide FR-4 PCBs with up to 16 layers, 3mil minimum line width and spacing, and as small as 0.2mm holes. At Global Success Circuits Co. Ltd, the maximum is 30 layers, and the minimum 4mil line width and spacing, and 0.2mm holes. Output for the application is 15 percent of total production. As for Cheng Yi Electronics (Jiaxing) Co. Ltd, the highest layer count is eight, the tightest line width and spacing 3mil and the smallest holes 0.15mm. About 20 percent of the volume is for the security market.

FR-4 boards make up the largest PCB category in China and the world. These are widely used in the computer, communications, consumer electronics, automotive electronics, industrial, medical, security and military sectors. The first three collectively account for more than 70 percent of the line's local and global production value.

As requirement in these industries climbs, companies anticipate an annual revenue increase of about 10 percent, which is higher than the projection made in 2014. Some have responded with expanded production capacity.

Shenzhen X-Mulong can handle up to 80,000sqm monthly from 20,000sqm after acquiring Shenzhen Victory in 2015. Global Success will have raised capacity by 50 percent with the opening of its new factory in Jiangsu province. As for Cheng Yi, the target level is 70,000sqm monthly in 2017 from 60,000sqm. The maker will boost efforts for the automotive electronics market.

About 1,500 suppliers make up the FR-4 PCB production pool in China, and all can offer models for security products. They include a number of major international players such as Unimicron, Tripod, Nanya, Compeq, Kingboard and HannStar. Their combined output represents about half of the global volume.

The Pearl River and Yangtze River Delta regions and the Bohai Bay Rim Economic Region remain the key hubs for the line in China. In recent years, there has been migration to the provinces of Jiangxi, Sichuan, Hubei, Hunan and Anhui, and the Chongqing municipality.

Double-sided, multilayer FR-4 PCBs

For security devices and equipment, China companies turn out mainly double-sided and multilayer types, which constitute more than 70 percent of production value. In the latter segment, units with four, six and eight layers dominate.

Double-sided FR-4 PCBs have the largest share of the production value of Shenzhen X-Mulong and Cheng Yi for this application, followed by 4-layer kinds. The former supplier also offers circuit boards with six and eight layers.

Makers can provide models with line width and spacing of 2, 2.5, 3, 4 or 5mil, hole size of 0.1, 0.15, 0.2, 0.25 or 0.3mm, surface finish of ENIG, HASL, OSP, immersion silver or tin, flash gold, or gold finger or hard gold plating. In general, companies can match customers' requirements.

Manufacturers use FR-4 CCLs from Shengyi, GDM, Kingboard, Nanya, Iteq, TUC and EMC, and solder mask from Taiyo, Tamura, Goo and GreenCure. They also source the latter from local providers, including Kuangshun, Rongda, 3Q and ABQ.

Copper foil, prepreg, copper granules, tin lead bars, gold salt and chemical materials are from domestic companies.

From January to October 2016, the cost of FR-4 CCLs increased more than 40 percent due to the tight supply of copper foil. This resulted in about 10 percent rise in PCB prices in the same period.

In 2017, CCL rates are expected to climb between 5 and 10 percent, but this time, local makers will maintain quotes to win more orders as competition intensifies.