Printed Circuit Design & Fab Online Magazine

Board Buying

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?

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.