Printed Circuit Design & Fab Online Magazine

Board Buying

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?

Ways to avoid redesign due to discontinued parts.

Electronics found inside infrastructure items such as buses, trains, signage, control units – anything that requires a printed circuit board assembly – are usually expected to have a long lifespan of continuous operation.

Each of those electronic systems and their corresponding subsystems can be affected by component obsolescence, however, especially when the components placed into them today have a purchase availability of only about 10 years.

This is because changes in design, improved component speed and efficiency, a drop in demand, etc. lead to component replacement and can make older components obsolete.

That’s why component obsolescence management is so important for OEMs.

Read more: Component Obsolescence Management

Supply chains are stronger when spurred by private investment.

Both the Trump and Biden administrations have taken measures aimed at bringing manufacturing back to the US. But realistically, when will that happen?

And how much longer will we ask domestic PCB buyers who must rely on Asia for product to pay a tax for boards they cannot get made in a reasonable amount of time in the US?

In late May the US trade representative announced one more year of reprieve from the 25% tariff for two- and four-layer rigid printed circuit boards.

While two- and four-layer boards represent only a narrow portion of the PCBs manufactured in China, an exemption continuance is good news and will provide some relief to many OEMs and EMS companies struggling with supply chain challenges.

Read more: PCB Tariffs are All the Rage. They Aren't the Answer.

Take proactive steps to minimize the impact of growing material prices.

Overseas board manufacturers have received formal notifications from major laminate suppliers about upcoming double-digit price increases for the raw materials required to produce printed circuit boards.

Compared to this time last year, gold and copper prices have risen significantly due to inflation, the push for green energy, and speculative demand and capacity limitations for these precious metals in the coming years.

While most notifications were heavy on apologies but light on details, one was specific about the increases:

Read more: Navigating Rising Material Costs