Printed Circuit Design & Fab Online Magazine

Board Buying

A top-down strategy is needed to change course.

Both the Trump and Biden administrations have taken significant steps to bring manufacturing back to the United States. But realistically, when will this goal become feasible, and at what cost?

For domestic PCB buyers who currently rely on Asia for production, how much longer will they need to shoulder the burden of tariffs for boards that cannot be produced in the US within a reasonable timeframe?

In late May last year, the US Trade Representative announced another one-year reprieve from the 25% tariff on two- and four-layer rigid printed circuit boards. While this exemption applies to only a narrow portion of PCBs manufactured in China, it provides some relief to OEMs and EMS companies facing severe supply chain challenges. This short-term measure, however, does little to address the broader issues of manufacturing capacity and technological capability in the US.

Read more: Even with Tariffs, China Still the Better PCB Option – For Now

Ask questions now to save heartburn later.

I have been selling PCBs for over 30 years and have numerous longtime customers with whom I’ve developed close friendships.

But as with any relationship, there are ups and downs. Given the dynamics involved in being a buyer under pressure to obtain good quality boards at the best possible price, or in my case, being a supplier expected to ensure those perfect PCBs are delivered on time and with no problems, things can sometimes get testy.

Frustrations can arise, especially when the supplier needs to maintain a profit margin either through raising prices or increasing the quantity of boards purchased, while the buyer is expected to constantly cut costs without hurting production.

Read more: PCB Buyer and Supplier – A Love-Hate Relationship

The industry will face old and new challenges in the new year.

This year’s supply chain issues and looming economic uncertainty have many PCB buyers wondering about 2025.

Here are the top three challenges the PCB industry will face next year. How prepared are you?

Precious metals. The price of gold is up nearly 30% this year, hitting another all-time high last month. As a consequence, PCB buyers should expect a price bump in board pricing for both new and repeat orders.

Heightened concerns about inflation and economic stability continue to make gold an attractive safe haven. Even with hopes of a better economy next year, don’t expect prices to drop to 2023 levels any time soon.

Read more: What’s Your 2025 PCB Buying Strategy?

The country’s growing industry could prove a viable alternative to China.

I have been involved in the electronics manufacturing industry for over 20 years, with much of that time based out of Hong Kong. China is a manufacturing powerhouse, supplying not only the world but its own large population with electronic products ranging from home appliances to ultra-modern electric vehicles. China is well beyond being called a “developing nation.” It is a very mature economy – especially when it comes to any kind of manufacturing.

Recent geopolitical tensions from past and present US administrations, however, as well as supply chain concerns that came about during the Covid pandemic, have forced many OEMs and EMS companies to look elsewhere for their PCB needs – a task that is easier said than done.

In response to industry demands, I have traveled to several countries in southeast Asia over the past 18 months to learn as much as I can about the printed circuit board industry outside of China.

It was during my third and most recent trip to Thailand last July that I attended Thailand Electronics Circuit Asia 2024 (THECA), the electronics circuits and services showcase event in Bangkok.

Read more: Is Thailand the World’s Next PCB Manufacturing Base?