How foldable phones are opening new paths for flexible printed circuits

The rise of a new generation of flexible smartphones is lifting foldable technology, opening new markets in AI glasses and humanoid robots

By CLS Marketwatch

Innovations in consumer electronics have propelled hardware forms into a new phase these last few years. Foldable smartphones are one of the most representative categories, transitioning from niche product to widespread adoption. The trend is also having a big impact on specifications and usage of upstream components. As a key component of such phones, flexible printed circuits (FPCs) have seen strong growth in demand and also value. Among these, ultra-thin FPCs have established especially competitive barriers by virtue of their superior stability and mass-production consistency.

Turning folds into fortune

Recent releases of the Huawei Mate XT 2 and the Apple iPhone Duo have ushered in an intense period of new product rollouts for foldable smartphones. Growing popularity of foldable form designs is notably rewriting usage and specifications for FPCs. As a bendable circuit carrier that connects the display, battery, and motherboard inside a smartphone, FPCs are widely used in modules such as displays, touchscreens, cameras, and communication systems.

FPC usage is soaring with upgrading smartphone designs. Traditional flagship phones typically use between 10 to 15 FPCs per device, while the iPhone Duo is believed to use more than 50. Tri-fold models may use even more. Along with this quantity increase, the combined FPC cost for a single foldable phone has reached several hundred to around 1,000 yuan ($150), at least double that of comparable printed circuits used in non-bending phones.

Apple’s recent entry into foldables has caused the industry to place greater emphasis on value growth. The average price of Chinese domestic foldable phones has dropped significantly over the last few years, with the supply chain focused mostly on lower costs. But after Apple’s entry, hardware requirements have shifted toward higher-density, thinner, and more reliable FPCs, with per-device value replacing shipment volume as the main source of industry growth. Global shipments of foldable phones are expected to grow by 24% year-over-year in 2026. Cumulative global shipments are expected to exceed 100 million units by the end of this year, while the next 100 million units may take only three years to achieve.

Thin FPCs deepen the moat

To minimize a device’s thickness, high-end foldable phones have begun using ultra-thin FPCs. But the thinner the material, the harder it becomes to maintain stability during the manufacturing process due to thermal expansion and contraction, prolonging the yield ramp-up period and driving up costs. The challenges extend beyond manufacturing, as the upstream supply of core substrates is also constrained. Flexible copper clad laminate (FCCL) accounts for roughly 40% to 50% of FPC material costs, and, together with cover films and specialty adhesive films, these materials make up 40% to 60% of total production costs. As a result, FPC manufacturers’ cost control and supply security depend considerably on upstream substrates.

In the domestic market, high-end FPC orders are concentrated among a small group of manufacturers. For instance, Avary Holding (002938.SZ) and Xiamen Hongxin Electronics (300657.SZ) are already supplying FPC products for mainstream foldable screen devices, with gross margins for that business rising year-on-year at both companies in the first half of this year.

By revenue, Avary has ranked first among global PCB companies for many years; Hongxin’s gross profit margin for its FPC business stood at 12.60% in the first half of the year, up 4.79 percentage points year-over-year. Suzhou Dongshan Precision (002384.SZ) disclosed in its semi-annual report that it is the world’s second-largest FPC supplier and is currently focusing on high-end production line construction.

FPC know-how seeds new bets

The advanced FPC manufacturing processes developed for foldable-screen FPCs are now being extended to other emerging hardware. For example, about 70% of the equipment and processes developed for manufacturing ultra-thin substrates, fine circuits, component mounting, and bending test systems, can now be directly reused for new hardware. Moreover, FPC manufacturers need not tear down and rebuild production lines designed for foldables when venturing into other fields. However, compared with traditional phones, emerging fields such as AI glasses place higher demands on circuit fineness and complexity, necessitating a corresponding upgrade in FPC manufacturing processes.

AI glasses are currently one of the most promising emerging sectors, with global shipments expected to exceed 15 million units by 2026. Avary Holding has already begun supplying FPCs for AI glasses to leading clients, and Hongxin has also begun doing research around emerging fields such as AI PCs, AI glasses, and embodied intelligence, focusing on FPC processes and product compatibility with target customers.

At the same time, humanoid robots represent a potential growth area in the medium to longer term. Industry projections for global humanoid robot shipments in 2026 range between 50,000 and 85,000 units. The cost of FPCs per robot can reach about $500, or about five times the cost for a single foldable smartphone. Still, annual robot shipments number only in the tens of thousands, compared to hundreds of millions of smartphones shipped each year.

In sum, the flurry of new foldable smartphone releases is laying the groundwork for a new round of growth opportunities for FPC makers, with unit value per device now replacing shipment volume as the primary driver. AI glasses are also expected to take over as a leading product in the coming year, providing a new catalyst for the development of high-end flexible board processes. Further down the road, humanoid robots, with their higher per-device value, represent a source of longer-term value growth.

CLS Marketwatch provides insights and analysis on China’s industries. You can contact the author at liujingyi@cls.cn

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