Since the beginning of 2026, the global FPC industry has experienced the largest expansion wave in history, with leading domestic companies increasing their high-end production capacity layout and overseas manufacturers accelerating their capacity adjustments. The industry competition has entered a white hot stage. According to incomplete statistics, since 2026, leading domestic enterprises such as Pengding Holdings, Shenghong Technology, Shanghai Electric Power Co., Ltd., and Yilian Technology have announced a total investment of over 50 billion yuan in high-end FPC production capacity, mainly focusing on high-end fields such as automotive electronic FPC, advanced HDI soft boards, and AI server FPC. Behind the expansion wave is the continuous outbreak of downstream demand and the urgent need for industry transformation and upgrading.

Leading domestic enterprises are expanding their production and focusing on the high-end track to build competitive advantages. Pengding Holdings, as a global leading FPC enterprise, plans to invest 11 billion yuan to build a high-end PCB/FPC base in Huai'an, and simultaneously promote the expansion of production in the Thai park, focusing on the layout of high-end FPC production capacity for automotive electronics and consumer electronics. It is expected to add 300000 square meters of production capacity per month by the end of 2026; Shenghong Technology announced a capital expenditure of 20 billion yuan in 2026, which will be used for upgrading automation production lines and expanding high-end FPC production capacity. The focus will be on producing high-frequency high-speed FPC and rigid flexible junction boards for automotive electronics, to meet the needs of new energy vehicles and AI terminals; Yilian Technology plans to raise no more than 1.2 billion yuan to build a new energy intelligent manufacturing flexible electrical connection system project, meeting the incremental needs of vehicle manufacturers such as Xiaopeng, Geely, and Volkswagen. In addition, local governments such as Tongling in Anhui Province are actively promoting the construction of FPC projects, accelerating the landing of flexible printed circuit board projects with an annual output of 600000 square meters, and helping to increase the production capacity of high-end electronic manufacturing in the region.

Overseas manufacturers are accelerating their layout, intensifying global competition for high-end production capacity. Faced with the rapid development of the Chinese market and the explosion of downstream demand, leading overseas FPC companies have also adjusted their production capacity layout. Fujitsu and Sumitomo Electric of Japan have increased their investment in the research and production capacity of automotive electronic FPCs, with a focus on improving the mass production capability of high-temperature resistant and high reliability products; LG Innotek in South Korea is accelerating the industrialization of double-sided COF (flip chip coating) technology, improving signal transmission efficiency through micro porous processes, and seizing the high-end consumer electronics FPC market. At the same time, overseas manufacturers actively strengthen cooperation with domestic supply chains, reduce production costs, enhance market competitiveness, and further intensify the global competition for high-end FPC production capacity.

There are hidden concerns behind the expansion of production, and the risk of structural overcapacity is beginning to emerge. Although downstream demand continues to grow, the industry's expansion rate far exceeds the growth rate of demand, and there are signs of structural overcapacity in the high-end FPC field. According to industry analysis, the total production capacity of FPC in China is expected to reach 1.5 billion square meters by 2026, with a rapid increase in the proportion of high-end production capacity. However, the growth rate of FPC demand in the consumer electronics field has declined, and the incremental demand in the automotive electronics, AI and other fields is difficult to fully absorb the new production capacity in the short term. If the growth rate of consumer electronics is lower than 7%, the utilization rate of high-end FPC production capacity may fall below 75% after 2027, entering the overcapacity zone.

The industry reshuffle is accelerating, and the advantages of top enterprises are highlighted. This expansion wave will further promote the concentration of the industry, and the proportion of CR5 and CR10 will continue to rise. Top enterprises rely on their scale advantages, technological advantages, and customer resource advantages to bind with domestic and foreign top end manufacturers, maintaining a high level of capacity utilization; Due to insufficient technological strength and limited customer resources, small and medium-sized manufacturers are gradually being eliminated in the competition for high-end production capacity. The industry presents a pattern of "head concentration and small and medium-sized clearance", with price wars and technology wars coexisting, promoting the continuous transformation of the industry towards high-end intelligent manufacturing.