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

PCB drills continue to support cemented carbide drill production

Production volume of cemented carbide drills has been growing in Japan. While production value declined in 2020 due to the spread of COVID-19, production volume continued to rise. Why?

To understand the market situation, the editorial department of News Digest Publishing, which operates SEISANZAI Japan, conducted a detailed investigation. The findings pointed to printed circuit board (PCB) drills as the likely driver behind the continued increase in cemented carbide drill production.

The first part of this article is here.

PCB drill demand remains strong in China

PCB drills are specialized tools used for drilling and cutting printed circuit boards. Compared to carbide drills for metalworking, PCB drills have smaller diameters and lower unit prices.

PCBs are essential components found in a wide range of electronic and communication devices, including smartphones and data servers, and are closely linked to semiconductor industry trends.

In 2020, the semiconductor sector was strong, buoyed by 5G-related demand and investment in China, which in turn fueled demand for PCBs. According to U.S. research firm Lucintel, the global PCB market is expected to grow at an average annual rate of 3–5% between 2020 and 2025, reaching a market size of $85 billion by 2025.

A spokesperson from Union Tool, a leading manufacturer with a large market share in PCB drills, stated:

“In China, cemented carbide drills performed strongly due to increased demand from 5G, data servers, and smartphones. In Japan, demand began recovering gradually from summer 2020.”

This suggests that PCB drills, driven by growth in semiconductors and 5G applications, have played a key role in supporting carbide drill production volume. As long as semiconductor demand remains high, the production volume of cemented carbide drills is expected to stay at elevated levels.