5G propulsion conductive shielding material die-cutting and thermal conductivity data and device requirements are rapidly increasing: 5G smart phone transmission rate, frequency, signal strength, etc. are significantly improved, from the center chip to the RF device, from the machine body to the internal structure, parts will usher in The new innovations have made higher demands on electromagnetic shielding and heat conduction. In the future, electromagnetic shielding and thermal conduction products are expected to further diversify, process advancement, and increase the consumption of single machines, and have a wider growth space. According to third-party forecasts, the global EMI/RFI shielding data market will reach 7.8 billion US dollars in 2021, and the interface thermal conductivity data will reach 1.1 billion US dollars in 2020. The graphite thermal data belonging to emerging industries is in the consumer electronics market. The scope has reached nearly 10 billion yuan. With the rapid development of the downstream market in the 5G period, the increase in the demand for single machines and the increase in the number of terminal devices will bring about huge incremental demands for electromagnetic shielding and thermal conductivity data and devices. Therefore, we believe that electromagnetic shielding and thermal conductivity materials will be available after 2021. The market is expected to achieve faster growth.

New materials and new technology advancement from time to time:

1) At present, the commonly used thermal conductive devices in the industry include graphite sheets and various thermal interface devices. Among them, artificial graphite materials have excellent planar thermal conductivity, low density (light weight), high specific heat capacity (high temperature resistance), and long-term Reliable and other advantages, widely used in the heat dissipation category of consumer electronics, 5G period composite and multi-layer thermal graphite film and other innovative products are expected to usher in more common applications, and advanced calcination process is also expected to become artificial thermal graphite film manufacturing technology With the development direction of the copper tube and heat sink, the heat dissipation plan for the smart phone is also going to be ultra-thin and efficient. A new scene in which heat dissipation products coexist and data technology is innovated from time to time.

2) Currently widely used electromagnetic shielding devices mainly include conductive plastic devices, conductive silicone materials, metal shielding devices, conductive cloth pads, absorbing devices, etc. The technical level of electromagnetic shielding devices is mainly led by the development of their data, and the conductivity of the data. The magnetic permeability and data thickness are the essential elements of shielding effectiveness. The electromagnetic shielding data will be developed in the direction of higher shielding effectiveness, wider shielding frequency and better comprehensive performance. The innovative application of various new materials in electromagnetic shielding will be obtained. More development, so it can be foreseen that the continuous advancement of the process data of electromagnetic shielding devices in the 5G period will be a positive trend.

Multiple factors promote domestic manufacturers to have competitive advantages in the future: the upstream raw materials account for more than 70% of the cost of electromagnetic shielding and thermal conduction products. Most of the original materials have no scarcity in the market, and the main raw materials of thermal graphite films are poly Imide (PI film), high technical barriers, global suppliers are mainly concentrated in the United States and Japan and South Korea, the price of PI film shakes have a greater impact on the gross profit margin of thermal graphite film products, and in the future, new capacity will be added with the supply side. The supply and demand relationship of PI film is expected to stabilize at all. At present, the electromagnetic shielding and heat conduction category has constituted a relatively stable competitive landscape. At the arrival of 5G, the domestic electromagnetic shielding and thermal conduction suppliers mainly adopt differentiated strategies to provide customized products for high-end customers, focusing on technology promotion and application. Innovation, along with the localization trend of the terminal, with rapid service response and capacity expansion, can quickly seize the incremental market share. At the same time, overseas giants are unable to continue to focus on planning, we believe that the electromagnetic shielding and thermal conductivity industry will show a significant localization trend. . At the same time, the current domestic gross profit margin of pre-emptive manufacturers has been the result of abundant competition in the market in recent years, and it is expected to remain stable in the future.

During the 5G period, the promotion of consumer electronic components benefited from two major trends: the increase in stand-alone usage and the advancement of technological processes, which in turn promoted the continued growth of market space. Regarding domestic suppliers, whether they can significantly benefit from the incremental dividends brought about by the 5G period depends mainly on the market space potential and the future competitive landscape. We believe that considering the two major factors, the conductive shielding material die-cutting and thermal conductivity industry is expected to become the first category of domestic suppliers to benefit.

1, 5G propulsion electromagnetic shielding and thermal conductivity data and device demand increased rapidly

1.1 Electromagnetic shielding and thermal conduction products are commonly used in consumer electronics and communication equipment.

The universal use of high-performance communication equipment, computers, smart phones, automobiles and other terminal products has driven the rapid expansion of electromagnetic shielding and thermal conduction devices and related industrial applications, and the application of products has been deepened from time to time. At the same time, electromagnetic shielding and thermal conduction devices are used in electronic products. It can also greatly improve the quality and performance of electronic products.

The 5G period is approaching, the introduction of high frequency, the advancement of hardware components, and the number of connected devices and antennas are multiplied. Electromagnetic interference between equipment and equipment and inside the equipment itself is ubiquitous, electromagnetic interference and electromagnetic radiation to electronic equipment. The harm is also getting worse. At the same time, along with the upgrade of electronic products, the power consumption of the device increases from time to time, and the heat generation also rises rapidly. In the future, the bottleneck of high-frequency and high-power electronic products is the electromagnetic radiation and heat generated by them. To solve this problem, electronic products will participate in more and more electromagnetic shielding and heat-conducting devices during design. Therefore, the role of electromagnetic shielding and heat dissipation data and devices will become more and more important, and future demand will continue to grow.

In the 2G period before the smartphone was upgraded, the mobile phone was less subject to electromagnetic shielding and heat dissipation. With the advent of 3G smartphones, the hardware configuration of mobile phones is getting higher and higher, and the CPU is advancing toward multi-core high-performance from time to time. The large-size and high-resolution screens tend to be obvious, and the communication rate is also improved from time to time. From time to time with the need for heat dissipation, it is advancing the variety and innovation of electromagnetic shielding and thermal conductivity devices.

Figure 2: Smart phone advancement advances electromagnetic shielding and thermal conduction devices are gradually becoming richer

It can be foreseen that 5G smartphones will usher in new innovations due to the significant increase in transmission rate, frequency, signal strength, etc., from the center chip to the RF device, from the body to the internal structure. Innovative promotion has made new requests for electromagnetic shielding and thermal conduction of smart phones. In the future, it is expected to further present trends such as diversification of varieties, advancement of technology, and increase in single-machine usage, which will further increase the value of single-machines. Therefore, electromagnetic shielding and thermal conduction products have more in the 5G period. A wide application space.

1.2 5G period conductive shielding material die-cutting and thermal conductivity industry continues to grow

In recent years, with the advancement of hardware and software technology, the innovation of consumer electronics products and the promotion of communication equipment have promoted the steady growth of the electromagnetic shielding and thermal conductivity data market. According to BCC Research's forecast, the global EMI/RFI shielding data market will increase from 6 billion US dollars in 2016 to 7.8 billion US dollars in 2021, with a compound growth rate of nearly 6%, and the market for global interface thermal conductivity data will be 2015. The $760 million progressed to $1.1 billion in 2020, with a compound growth rate of over 7%.

The graphite heat dissipation materials belonging to the emerging industries have been rapidly developed in recent years since they were widely used in consumer electronics in 2011. According to the unit price of 150-200 yuan/square meter, the current high thermal conductivity graphite data is in the category of consumer electronics. The market scope is nearly 10 billion yuan.

Since the 5G period will come comprehensively after 2020, the above-mentioned short-term market-wide forecast is mainly based on the advancement requirements of existing equipment, and neither considers the incremental factors after 5G large-scale commercial use. It is foreseeable that with the rapid development of the downstream market in the 5G period, there will be a huge incremental demand for electromagnetic shielding and thermal conductivity data and devices. Therefore, we believe that after 2021, the electromagnetic shielding and thermal data market growth rate is expected to be at this bottom. Further significant improvements.

According to Gartner's forecast, with 5G mobile phones going to be listed in 2019, 9% of smartphones will support 5G networks in 2021, so the annual sales of 5G mobile phones will break the 100 million level after 2021. According to the "Three-Year Action Plan for the Serious Project of Information Base Equipment" issued by the National Development and Reform Commission and the Ministry of Industry and Information Technology in early 2017, by 2018, the total number of 4G base stations in China will increase by 2 million in 2015, that is, a total of about 4 million, roughly assuming 5G low frequency. The number of base stations is equivalent to the number of 4G base stations, and the number of high-frequency base stations is roughly equal to the number of low-frequency base stations. The total number of 5G base stations will reach nearly 8 million in the future, and it is expected to double in the existing range.