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In 2017, the LED industry experienced significant transformations, with a growing concentration of market power and an increasingly prominent "Chinese business card" in the global LED landscape. The trend of vertical integration within the industrial chain, especially the bottom-up approach, became more evident than ever before.
From a supply chain perspective, rising raw material costs and supply shortages affected many PCB manufacturers and downstream application companies. In particular, the prices of copper clad laminates (CCL) and other key materials for the PCB industry fluctuated significantly during the year.
At the end of 2016, nationwide environmental protection measures triggered a wave of disruptions across the manufacturing sector, including the PCB industry. This led to a period of instability marked by supply chain challenges. However, in the first half of 2017, the industry faced seasonal slowdowns and price corrections, which helped CCL prices decline. By the third quarter, with both raw material costs and demand from downstream sectors on the rise, CCL prices began to climb again.
Zhang Xiaokui, General Manager of Zeyou Electronics, explained that the recent increase in CCL prices was mainly driven by higher upstream material costs and increased downstream demand. This combination of factors intensified pressure on PCB manufacturers, especially as stricter environmental regulations targeted small-scale producers, further tightening the industry landscape.
As a long-standing supplier in high-tech fields such as LED lighting, consumer electronics, automotive electronics, and medical devices, Zeyou Electronics closely monitored the dynamics of its upstream materials. By maintaining strong relationships with major suppliers, the company managed to secure stable pricing and supply for its main raw materials, even amid market fluctuations.
In addition, Zeyou focused on cost reduction and efficiency improvement throughout the year. Zhang emphasized that operational efficiency remains crucial for traditional manufacturing industries. With per capita productivity 1.5 times that of similar-sized companies, the firm managed to maintain profitability despite rising material costs without passing on price hikes to customers.
Thanks to improved efficiency and stable supplier and customer relationships, Zeyou Electronics projected nearly 70 million yuan in annual sales for 2017. Over the past four years, the company has consistently prioritized customer satisfaction and product quality, earning a solid reputation in the domestic LED industry. With a steady growth rate of 20–25% annually, the company attributes its success to both customer support and internal efforts.
Looking ahead to 2018, Zhang warned that material supply issues and environmental regulations would continue to affect the CCL market. He advised downstream customers to plan ahead and place orders early to mitigate risks.
Moreover, the PCB industry is seeing new growth opportunities in fields like automotive electronics, wearable devices, and medical equipment. These emerging applications are expected to drive demand in 2018.
Zhang also noted that the PCB industry is becoming more concentrated, with larger manufacturers gaining a stronger market position. According to data, the top five global PCB manufacturers saw their market share double from 10.8% in 2006 to 21.84% in 2016. This trend is driven by the need for advanced technology, large capital investment, and efficient production capabilities.
As consumer demand shifts toward high-quality, high-tech products, PCB manufacturers must adapt to meet these evolving needs. Large firms with strong R&D, production, and supply chain management capabilities are better positioned to serve major brand customers.
Meanwhile, smaller manufacturers face increasing challenges, leading to a widening gap between them and industry leaders. As the market continues to consolidate, only those who can innovate and scale will thrive.
For 2018, Zeyou Electronics plans to enhance its competitiveness through four key areas: product quality, market expansion, talent development, and corporate image building. The company aims to achieve 100 million yuan in annual sales by focusing on these strategies and continuously improving its operations.
September 10, 2025