As the pace of generational upgrades in communications continues to accelerate, with 4G entering its later stages, 5G will drive further growth in the PCB industry and boost the PCB market. This article will explore the impact of 5G technology on the PCB industry and explain why we can expect 5G to bring new opportunities to the PCB market.
1. The 4G cycle is coming to an end
With the widespread adoption of 4G networks, nearly universal 4G coverage has been achieved worldwide. However, this also means that telecom operators have entered the post-4G phase. The number of 4G users has reached a staggering 2.36 billion, while the total number of 4G base stations in China has reached 3.41 million. As a result, the 4G market has become saturated, and capital expenditures have begun to decline.
For the PCB industry, the direct impact of the post-4G cycle isChanges in the Order Structure for Telecommunications Equipment Boards: As the number of new base station construction projects declines, orders for capacity expansion and maintenance account for a growing share of the market. Meanwhile, increased product maturity has led to a decline in unit prices, shifting competition among PCB manufacturers from “whether they can produce it” to “whether they can produce it cheaply.” Manufacturers that survive this phase will do so based on yield rates and delivery performance, rather than technological barriers.
2. The Arrival of 5G
As the next-generation standard in the telecommunications sector, 5G technology is set to revolutionize the PCB industry. The advent of 5G will drive large-scale network upgrades, presenting new business opportunities for PCB manufacturers.
The significance of this “revolution” for PCBs lies inUpgrading the Structure of Demand: It’s not just the number of base stations that has increased; there has also been an overall rise in the number of layers, material grades, and manufacturing complexity of the circuit boards used in each station. The main boards of 4G base station BBUs typically consist of 8–12 layers and use standard FR-4 material; in contrast, the AAU and baseband boards of 5G base stations generally feature 12–20 layers and make extensive use of high-frequency materials as well as back-drilled, blind, and buried via processes.
3. 5G Investment Opportunities
We have divided the development of 5G into four stages: the initial momentum phase, the investment phase in key segments of the industry chain, the maturity phase of advanced 5G technologies, and the post-5G phase. Currently, we are in the investment phase in key segments of the industry chain. The development of 5G standards and technological R&D will drive an increase in capital expenditures, creating more opportunities for the PCB industry.
The PCB requirements vary across the four stages:
| Stage | Network-Side Status | Characteristics of PCB Demand | Opportunities in the Plywood Industry |
|---|---|---|---|
| The Topic Heats Up | Standard Development, Test Networks | Frequent prototyping, small batch sizes, and frequent specification changes | Express Delivery Capacity, Coordination with Construction Projects |
| Investments in Key Areas | Large-Scale Website Development | Large production volumes, stable specifications, and high delivery pressure | Production Capacity, Yield Rate, Cost Control |
| Advanced Technology Maturity | Millimeter Wave, Network Optimization | High-Frequency Materials, HDI, Precision Manufacturing | Process Capabilities, Material Certifications |
| Post-5G | Expansion, Maintenance, and Upgrades | Cost-Driven Approach, Substitution, and Cost Reduction | Cost Optimization, Rapid Response |
4. Industry Catalysts
In 2017, China’s three major telecom operators successively released white papers on 5G transmission networks, and 3GPP also approved the 5G standards. These developments catalyzed the advancement of 5G technology and laid the foundation for the growth of the PCB industry.
The standard freeze is considered a watershed moment in the PCB industry becauseOnly once the standards are established can the equipment specifications be determined and the production process at the panel factory be finalized.. Before the standards are finalized, panel manufacturers conduct parallel prototyping across multiple design options; only after the standards are finalized are they in a position to discuss mass production and cost reduction. This also explains why, in the telecommunications equipment supply chain, material certification—particularly the certification cycle for high-frequency panels—is often more critical than capacity expansion.
5. Optical Transport Network Carrying Solutions
In the 5G era, optical transport networks will play a crucial role. Demand for optical equipment, optical modules, and optical fiber cables will increase significantly, presenting more opportunities for the PCB industry. The optical module market is expected to reach tens of billions of dollars, while demand for optical fiber cables will also grow exponentially.
The requirements for PCBs in optical modules can be summarized in three points:Low Loss in High-Speed Materials(The PCB for 100G/400G optical modules must use a material with a Df ≤ 0.005),Back Drilling Process(Removing via stubs to reduce reflections, which is virtually mandatory at data rates of 25 Gbps or higher),Tightening of Impedance Tolerances(Differential impedance tolerances have been tightened from ±10% to ±7% or even ±5%.) All three of these are process barriers that can keep ordinary PCB manufacturers out of the market.
6. New Opportunities in RF Front-End Technology
5GRadio FrequencyThe front end includes core components such as antenna elements, 5G circuit boards, filters, and power amplifiers. Due to the widespread adoption of massive MIMO and active antenna technologies, the RF front-end market is expected to reach four times the size of the 4G market. Among these, domestic manufacturers in the PCB and upstream CCL sectors will play a significant role in the global market.
"Antenna elements" deserve a separate discussion: While the antenna elements in 4G base stations are mostly die-cast metal parts, 5G Massive MIMO increases the number of antennas from just a few to 64, 128, or even more. Metal elements are no longer suitable in terms of weight and consistency,PCB resonators (resonators mounted on a PCB) have become the mainstream solution. A single AAU may contain dozens or even hundreds of PCB resonators, representing a brand-new, high-growth product category that 5G has brought to the PCB industry.
In summary, 5G technology presents tremendous opportunities for the PCB industry. As 5G networks are built out and become more widespread, PCB manufacturers will see an increase in orders and will need to continuously innovate to meet the demands of 5G devices. This momentum is expected to continue for several years, injecting new vitality into the PCB industry.
7. Specific Changes in PCB Technology Requirements Due to 5G
| Technical Indicators | The 4G Era | The 5G Era | The Meaning of "Board Factory" |
|---|---|---|---|
| Sheet Material Df | 0.015–0.020 | 0.002–0.008 | Must pass high-frequency material certification |
| Number of Floors | Floors 8–12 | Floors 12–20 | Upgrades to Pressing and Alignment Capabilities |
| Back Drill | A small amount | General Requirements | Back-drilling Equipment and Depth Control Required |
| Impedance Tolerance | ±10% | ±5%~±7% | Control of Line Width and Medium Thickness Tightening |
| Pore size | 0.2–0.3 mm | 0.1–0.2 mm (laser holes) | Laser drilling capability required |
| Heat Dissipation | Generally | High Power Density | Thick Copper, Heat-Dissipating Vias, Metal Substrates |
| Dimensions | Intermediate | Increase in Large Backplanes | Large-Scale Equipment and Warpage Control |
8. Base station side: The PCB needs to be split into four sections
The demand for PCBs for 5G base stations can be broken down by equipment unit as follows:
- AAU (Active Antenna Unit): The antenna element board, RF power amplifier board, and filter board are the components that use the most high-frequency materials and PCB elements, and they represent the highest value per station.
- BBU (Baseband Unit): High-layer-count backplane and main control board, with 16–24 layers, carrying high-speed signals, and extensive use of back drilling.
- Power Supply and Cooling: Thick copper plates and metal substrates designed to handle high currents and provide heat dissipation.
- Transmission and Optical Modules: High-speed optical module PCBs, with data rates ranging from 25G to 400G, have the most stringent material and tolerance requirements.
Of the four boards, the BBU backplane and high-speed optical module board present the highest technical barriers, while the AAU antenna element board is used in the largest quantities. When entering this market, board manufacturers typically start with the segments that have lower barriers to entry and then gradually move toward higher-value segments. For 5G board management standards, seeManagement Guidelines for 5G PCBs。
To assess whether a 5G project is worth investing in, consider these four points:
- Frequency Band: Whether it's Sub-6G or millimeter wave determines the material grade and manufacturing complexity.
- Rate: Determine whether back drilling is necessary and to what extent the impedance tolerance should be tightened.
- Batches and Lifecycle: Whether it's prototyping or mass production, the length of a product's life cycle determines the return on investment.
- Certification Requirements: Has the customer specified the materials and the panel manufacturer? Is the certification timeline feasible?
9. On the Device Side: Three Changes Brought About by 5G Phones
In addition to base stations, 5G devices are also driving significant demand for PCBs:
- Motherboards Have Evolved from Through-Hole Boards to HDI Boards: 5G smartphone components are more densely packed, and motherboards generally use second- or third-order HDI, or even any-layer interconnects. With each increase in order, the unit price rises significantly.
- Antennas Have Evolved from Individual Components to Arrays: Sub-6G uses 4–8 antennas, while millimeter-wave uses antenna-in-package (AiP) modules, in which the antenna and RF front-end are integrated into a single package, placing extremely high demands on the substrate material and manufacturing precision.
- Increased Use of Flexible Circuit Boards and Rigid-Flex Boards: Foldable screens, multi-camera modules, and under-display components are driving increased demand for FPCs and rigid-flex boards.
For technical details on millimeter-wave technology, seeUnderstanding 5G High-Frequency Boards, Millimeter Wave, and Their Impact on the Communications Industry, For high-frequency sheet material selection, seeHigh-Frequency Microwave Board Selection Guide。
10. From 5G to 5G-A and 6G: Where Are the Next Opportunities?
As 5G deployment enters its mid-to-late stages, the industry’s focus is shifting to three areas:
- 5G-Advanced (5G-A): Building on 5G, improvements in uplink speeds, positioning accuracy, and integrated communication and sensing capabilities place higher demands on the number of antennas and bandwidth, while the number of PCB layers and material grades continue to increase.
- Commercial Use of Millimeter-Wave Technology: With Sub-6G leading the way and millimeter-wave technology gradually being rolled out in high-traffic areas and industrial settings, this will create new demand for high-frequency laminates, AiP substrates, and precision machining.
- 6G Preliminary Research: Preliminary research has already begun in areas such as the terahertz frequency band, integrated sensing and communication, and integrated space-ground systems. For PCBs, this means higher frequency bands, lower loss requirements, and potentially new substrate materials.
Another parallel storyline isComputing Power: The demand for high-layer-count, low-loss, back-drilled, and thick-copper boards driven by AI servers and high-speed switches shares a high degree of overlap with the technical requirements for 5G base station boards. Board manufacturers with high-frequency, high-speed capabilities can leverage their expertise across both the communications and computing markets.
A timeline of how 5G is driving demand in the PCB industry:
- Before the standard was frozen: Parallel prototyping of multiple solutions tests the responsiveness of the express delivery and engineering teams.
- Large-Scale Website Development Phase: The simultaneous release of bulk orders puts production capacity and delivery capabilities to the test.
- Optimization and Expansion Phase: The implementation of millimeter-wave and advanced technologies puts high-frequency manufacturing capabilities to the test.
- The Post-5G Era: The focus is on cost reduction and substitution, which will test cost control capabilities.
11. Four Hurdles Plywood Mills Must Overcome
To land 5G orders, production capacity alone isn’t enough—you have to clear four hurdles:
- Material Certification: The certification process for telecommunications equipment and materials manufacturers is lengthy (typically ranging from several months to a year), and once certification is obtained, there is a strong tendency for customers to remain loyal to those suppliers. Without certification, a company isn’t even eligible to submit a quote.
- Process Equipment: Laser drilling, back drilling, LDI, vacuum lamination, and plasma residue removal—if even one of these steps is missing, the corresponding specifications cannot be met.
- Testing Capabilities: Impedance testing, TDR, cross-section analysis, X-ray inspection, and reliability testing are the only ways to demonstrate compliance with performance requirements.
- Delivery and Costs: Equipment manufacturers handle large, high-volume orders with tight deadlines, so their requirements for on-time delivery rates and cost control are far higher than those for small, sporadic orders.
For a complete list of process capabilities, seePCB Manufacturing Capabilities。
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Conclusion
The rise of 5G technology will drive further development in the PCB industry, presenting unprecedented opportunities for manufacturers and suppliers. As the rollout of 5G networks continues to advance, the PCB industry will continue to thrive and play a key role in this new era of communications.
The price of 5G-related PCBs is primarily determined by these six factors:
| Cost Items | Degree of Impact | Note |
|---|---|---|
| High-Frequency Materials | 高 | Accounting for 40–60% of material costs, it is the largest variable. |
| Number of Layers and Number of Pressing Cycles | 高 | Repeated pressing significantly increases labor hours and the risk of yield loss. |
| Back Drill | Upper-middle | Pricing is based on the number of holes; the higher the depth control requirements, the higher the cost. |
| Impedance and Tolerance Requirements | 中 | For every notch the tolerance is tightened, testing and scrap costs increase. |
| Surface Treatment | 中 | Electroplated gold, ENEPIG, and others are superior to tin plating |
| Inspection and Reporting | 中 | Full examinations, biopsies, and impedance reports are billed on a per-item basis |
Frequently Asked Questions
1. How is 5G technology related to the PCB industry?
The high-speed transmission and low-latency requirements of 5G technology call for more advanced PCB technology; therefore, the PCB industry will benefit from the development of 5G.
2. How will 5G affect the PCB market?
The advent of 5G will stimulate demand in the PCB market, particularly in the optical transport network and RF front-end sectors.
3. What are the stages of 5G technology development?
The development of 5G technology is divided into different phases, and we are currently in the investment phase for key segments of the industry chain.
4. Which PCB manufacturers will benefit from 5G technology?
Among PCB manufacturers, companies with advanced technology and innovative capabilities will hold a dominant position in the 5G era.
5. What are the other impacts of 5G technology on the telecommunications industry?
In addition to the PCB industry, 5G technology will also impact sectors such as smartphones, the Internet of Things, and cloud computing, driving a comprehensive upgrade of the telecommunications industry.
6. How do the PCBs used in 5G base stations differ from those used in cell phones?
Base station boards tend to be “large, thick, and multilayer”: they are large in size, have a high number of layers (12–24 layers), and make extensive use of high-frequency materials and back-drilling; the area of a single AAU antenna board can reach several hundred square centimeters. Mobile phone boards tend to be “small, thin, and dense”: they prioritize HDI (High-Density Interconnect), fine trace widths and spacing, and thin profiles. The capability requirements for these two types of boards are almost entirely distinct.
7. Why is it necessary to use high-frequency panels for 5G?
This is because loss increases with frequency. Conventional FR-4 performs acceptably below 1 GHz, but insertion loss deteriorates significantly at 3–5 GHz and becomes completely unusable above 28 GHz. For the Sub-6 GHz and millimeter-wave bands in 5G, laminates with Df ≤ 0.005 must be used; otherwise, the link budget simply cannot be met.
8. Why are back-side drills so common in 5G boards?
Stubs in high-speed signal vias act as open-circuit branches, causing reflections and creating resonance notches at specific frequencies. At speeds of 10 Gbps and above, the impact of stubs can no longer be ignored; at 25 Gbps and above, they must be eliminated. Back drilling to limit stub length to within 10 mil is a standard process for high-speed boards.
9. Why are PCB resonators replacing metal resonators?
Massive MIMO increases the number of antennas from single digits to tens or even hundreds, making die-cast metal dipoles no longer suitable in terms of weight, consistency, and assembly efficiency. By integrating the dipoles onto a PCB, dozens can be manufactured in a single process; consistency is ensured by etching precision; weight is significantly reduced; and costs are lower. This is an entirely new product category created for PCBs by 5G.
10. What can small and medium-sized board manufacturers gain from 5G?
The barriers to entry for manufacturing AAU or BBU mainboards are quite high, but there are plenty of opportunities in supporting components: mid-to-low-end power supply boards, structural boards, and antenna element boards; flexible circuits and connector boards inside the equipment; as well as jig boards for testing and manufacturing fixtures. A more realistic path is to first establish a track record of successful deliveries in the supporting segments and then gradually move up the supply chain.
Further Reading：The Widespread Use of Ceramic Substrates in the New Energy Automotive Sector · Three Common Drilling Methods for 5G PCBs · PCB Applications in the Telecommunications Industry
