On May 28th, GDDL Electronic Connection Technology Group, China’s leading provider of electrical connection technology for micro-electronic connectors and interconnection systems, stated in an institutional survey that the precision and yield rate of smart phone-to-board-to-board connector (BTB) products The requirements are very high and the technical difficulty is relatively high. The market is currently dominated by leading Japanese and European and American connector manufacturers.
GDDL's BTB products are divided into ordinary BTB products and radio frequency BTB products. Due to the difference in process design between the two products, the unit cost of radio frequency BTB products is higher than that of ordinary BTB products. In terms of ordinary BTB products and radio frequency BTB products, the company has produced qualified products and used them in batches for core customers, which has achieved a good market response. It is expected that in the future, as the miniaturization and high-frequency characteristics of BTB products become more and more obvious, the requirements for precision and automation will be higher and higher, and a large amount of technical reserve foundation will be needed. The company will gradually deepen it according to the market and customer needs. .
According to GDDL, in the future 5G millimeter wave era, the technical difficulty and complexity of products will increase exponentially. Based on the prospects for the promotion of 5G, especially the competitive landscape of the millimeter wave market in the future, the company's radio frequency connections and related products based on 5G materials will further meet the requirements of customer testing and small batch use, and continue to accumulate experience in the delivery process. Toward an industrial chain that is conducive to market value and expand in line with the company's needs.
In terms of FPC, GDDL stated that due to the large demand for soft boards by leading companies in the mobile phone industry, they have higher requirements for large-scale mass production capabilities of the supply companies, and business expansion is in progress. On the other hand, the company's soft board business is mainly to coordinate the research and development of LCP products and make corresponding technical reserves for the future 5G millimeter wave era. There is no large-scale application. The overall utilization rate of such products is low, which in turn leads to a low gross profit margin of soft board products. The company will further expand customers in response to market demand, increase utilization rates, and increase profitability. As for LCP connector products, the electrical connection technology is already in the small-scale supply stage, and the subsequent progress of this product depends on market demand.
Regarding the direction of capital expenditure and the way to expand production capacity, GDDL stated that on the one hand, the company's capital expenditure direction will focus on product chain running-in layout formation and research and development upgrades, and continue to promote the performance requirements and product forms of 5G-oriented radio frequency technology and interconnect products. Influencing research and development and achievement transformation, improve the company's product precision, production automation and process design level, and consolidate the existing market position in the mobile phone industry. On the other hand, the company will increase its expansion in the non-mobile phone industry, and closely track opportunities in the pan-5G field, mainly IoT smart mobile terminals and industrial connectors. The company will continue to increase its investment in automation equipment R&D and assembly for capacity expansion.