Analysis of the Movement of FPC Connector

Author：danny / time：2018-07-03 / The number of clicks：374

Most connector manufacturers in Asia grow their businesses through diversification. Except for FPC connectors, they also provide SATA connectors, USB 2.0 connectors, USB 3.0 connectors, MEMORY CARD connectors as well as other electronic connectors to meet customers’ needs.

Among these businesses, there are about 1,000 connector manufacturers in Mainland China, and nearly 300 of these are foreign-owned or joint ventures. Most manufacturers produce a wide variety of connectors. Those specializing in the production of FPC connectors are concentrated in Shenzhen, Dongguan and Yueqing. There are about 10 FPC connector manufacturers in Hong Kong that produce not only FPC connectors but also various types of connectors and electronic components. FPC connectors are less than 10% of the manufacturer's monthly shipments. Taiwanese manufacturers rarely focus on the production of FPC connectors and even sell them with FFC cables. Some suppliers are just distributors of large connector brands.

Most Taiwanese connector manufacturers choose to build their factories in Mainland China, concentrating on Guangdong Province due to low labor and production costs. Some suppliers are also engaged in trading activities for non-core products. Although Mainland China's raw material and labor costs are relatively low, they are not fixed. Recently, materials and labor costs have been increasing and manufacturers have taken corresponding countermeasures such as improving efficiency and reducing waste. Other companies have started assessing their production lines to optimize their automatic production process. Consumption of some materials has been reduced by minimizing on/off operation of injection molding machines. A number of FPC connector manufacturers have purchased equipment from foreign manufacturers and most raw materials were sourced from China.

Although there are significant challenges in the production and sales ofFPC connectors, manufacturers are still optimistic about the rising demand for consumer electronics and automotive electronics, especially GPS equipment.  Hence, they choose to maintain their production lines. In addition, the mobile phone industry has undergone rapid development in recent years, making it a large market base, which has drawn widespread attention from manufacturers. There is a saying that "a dead camel is bigger than a horse." Market researchers of FPC connectors predict that small FPC connectors for consumer electronics and mobile phones will become popular. Moreover, the growing demand for high-speed transmission will stimulate the demand for FPC connectors. Based on these analyses, there is a very large   market for FPC connectors.  Hence, manufacturers can expect positive outlook for the industry.