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In 2017, the global LED industry experienced significant transformations, with a notable increase in industrial concentration and a stronger presence of Chinese companies on the world stage. The trend of vertical integration within the supply chain, particularly bottom-up consolidation, became more pronounced.
From a supply chain perspective, rising raw material costs and shortages affected many PCB manufacturers and downstream application companies. Prices for materials like copper-clad laminates (CCL) fluctuated, creating challenges for the industry. At the end of 2016, nationwide environmental regulations caused disruptions, leading to supply chain issues that impacted the PCB sector.
However, by the first half of 2017, the combination of off-season demand and price corrections led to a decline in CCL prices. This trend reversed in the third quarter, as rising raw material costs and increased demand from downstream sectors pushed prices upward again.
Zhang Xiaokui, General Manager of Zeyou Electronics, explained that the recent rise in CCL prices was driven by higher upstream material costs and increased downstream demand. This situation, combined with stricter environmental regulations, intensified pressure on PCB manufacturers, especially smaller ones. As a result, the industry saw a wave of consolidation, with larger players gaining an advantage.
As a long-standing manufacturer serving high-tech fields such as LED lighting, consumer electronics, automotive, and medical devices, Zeyou Electronics closely monitored upstream material trends and worked with key suppliers to secure stable pricing and supply. This strategy helped maintain stability in their main raw materials throughout 2017.
Additionally, Zeyou focused on cost reduction and efficiency improvements, optimizing its management systems and enhancing productivity. Zhang emphasized that efficiency remains central to manufacturing success. He noted that their per capita output is 1.5 times higher than industry averages, allowing them to maintain profitability despite rising material costs.
Thanks to these efforts, Zeyou Electronics achieved nearly 70 million yuan in annual sales in 2017. The company has consistently prioritized customer satisfaction and product quality, earning strong trust in the domestic LED market. With a steady growth rate of 20–25% annually, Zhang credits the support of customers and suppliers, as well as the hard work of his team.
Looking ahead to 2018, Zhang warned that material supply constraints and environmental regulations could continue to affect the CCL market. He advised downstream customers to plan ahead and place orders early. Meanwhile, emerging applications in automotive electronics, wearables, and medical devices are expected to drive new growth for the PCB industry.
Zhang also observed that the PCB industry is becoming increasingly consolidated, with larger manufacturers gaining market share. According to data, the top five PCB manufacturers globally captured over 21% of the market in 2016, up from 10.8% in 2006. This trend is driven by high capital requirements, technical demands, and the need for large-scale production capabilities.
With consumers placing greater emphasis on product quality and innovation, PCB manufacturers must invest in R&D, scale, and supply chain management. Larger firms are better positioned to meet the demands of big-brand clients, further widening the gap between them and smaller competitors.
For 2018, Zeyou Electronics plans to strengthen four key areas: product quality, market expansion, talent development, and corporate image building. By focusing on these aspects, the company aims to achieve 100 million yuan in annual sales, expand production capacity, and solidify its position in the industry.
September 10, 2025