Board Buying

“Without capacity, there is no growth.”

As I write this column, the duty rate for 2- and 4-layer rigid printed circuit boards manufactured in China stands at 145%, while 6-layer and above along with all other technologies, whether rigid, flex or metal remains at 170%.

The first half of April brought a whirlwind of changes in tariff policies. I couldn't update my customers and LinkedIn followers fast enough; tariffs changed daily.

Read more: The ‘Tariffying’ News about PCBs

Greg Papandrew

A discussion with PCBAA president Shane Whiteside.

I recently sat with Shane Whiteside, president and CEO of Summit Interconnect, in his capacity as chairman of the Printed Circuit Board Association of America (PCBAA), to discuss the state of the PCB industry and the effects of the additional tariffs currently in place.

Whiteside’s PCB manufacturing and leadership career spans several decades, which lends itself well to PCBAA’s mission to advocate for a stronger US PCB industry. The association is working hard to educate and influence those in Washington, DC on the importance of a secure US electronics supply chain.

Read more: Taxes v. Tariffs: Which is Better for PCB Investment?

Naka nailed it: The domestic PCB industry will flounder without a clear direction.

“History is always repeating itself, but each time the price goes up.” – Will Durant

In February 2017, I wrote a column titled “An Afternoon with Naka” in which Hayao Nakahara (or Naka to his friends) – a true PCB veteran embarking on his 60th year in the industry – described the state of the US PCB manufacturing. Naka nailed it then. And eight years and two presidential administrations later, his analysis is just as applicable.

Let’s review some of what I call his “Naka-isms” and how they apply, with the additional element of tariffs, which, for obvious reasons, are top of mind for many in our industry right now.

Read more: US PCB Manufacturing: 8 Years Later, the Same Challenges – Only Bigger

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

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