Why does carbide drill market grow even in the COVID-19 era?（2/2）

Demand for semiconductors and 5G boosts PCB drills

Production volume of cemented carbide drill has been growing in Japan. The production value of cemented carbide drills decreased, but the production volume continued to increase in 2020 during COVID-19 spreading. why? The editorial department of News Digest Publishing, which publishes SEISANZAI Japan, researched what happened in the market. As a result, it became clear that the printed circuit board (PCB) drills are likely to have boosted the production volume of cemented carbide drills.

The first part of this article is here.

PCB drill in China to maintain a strong

PCB drills are special tools used to drill and cut printed circuit boards (PCBs). Compared to cemented carbide drills for metal machining, the diameter is smaller and the unit price is lower.

PCBs are installed in many electronic devices and communication devices such as smartphones and data servers, and are closely related to semiconductor trends.

The semiconductor industry was strong in 2020, driven by demand from China and 5G-related needs, and demand for PCBs was also high. According to Lucintel, a US research firm, the average growth rate of the PCB market over the five years from 2020 to 2025 will be 3 to 5%, and will reach $ 85 billion by 2025.

A spokesperson of Union Tool, which has a high market share of PCB drills, said, “In China, the cemented carbide drill maintained its strong performance due to increased demand of 5G, data servers, smartphones, etc. In Japan, it has gradually recovered since the summer of 2020.”

In other words, it is highly possible that PCB drills have boosted the production volume of cemented carbide drills, driven by growing demand for semiconductors and 5G. As long as there is the high demand for semiconductors, carbide drills are expected to keep higher production volume.