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.

Why China remains dominant. Here’s a hard, cold fact about the domestic US supply chain: We are out of our minds if we think we can disengage from China overnight.

Sourcing high-mix, low-to-medium volume production of advanced PCBs outside of China is much easier said than done. Even at an ex-works price – the cost that tariffs are applied to – pricing in other regions is typically 10-20% higher than in China. Furthermore, as companies shift work to countries with less manufacturing capacity, pricing and lead times are likely to climb even higher.

The PCB represents just 8-12% of a product’s costed bill of materials (BoM). Even with a 50% or even 100% tariff on that portion of the BoM, companies might still opt to source from China to get their products on time. Delays caused by sourcing from less capable regions could ultimately result in higher costs and significant disruptions, particularly when time-to-market is critical.

The cost of protectionism. History shows that tariffs often increase domestic prices and hurt businesses and consumers. Protectionist strategies are a double-edged sword, and tariffs tend to cut the wrong way. Adding government-imposed inflation to PCB pricing compounds the challenges already posed by rising material costs and freight surcharges. While it’s important to foster domestic manufacturing, the question remains: at what cost?

Rather than punishing consumers and businesses, a more effective strategy might involve incentivizing private investment. Imagine a three- to five-year tax holiday for companies that invest in domestic PCB production. Coupled with infrastructure improvements, workforce development and streamlined regulations, such initiatives could create a robust and sustainable domestic manufacturing sector.

The push for a “China+1” strategy. Residual issues from the Covid-19 pandemic, coupled with rising geopolitical tensions, have intensified efforts to reduce reliance on China for PCB production. Many OEMs and EMS companies in the automotive, RF and testing industries are now exploring “China+1” or “Out of China” strategies. These shifts are not without challenges, however. For many PCB buyers, China remains the only viable option due to its unmatched capacity and technological expertise.

Concerns about intellectual property protection, supply chain resilience and the optics of sourcing from China have driven this shift. Yet PCB buyers need to clarify their reasoning. If their concerns are geopolitical, alternative manufacturing options can be found domestically or in countries like Malaysia, Taiwan, Thailand or Vietnam. If export controls are at play, however, those manufacturing files cannot legally leave the US without proper licensing.

Buyers must understand and document their customers’ requirements to ensure compliance with export regulations. Clear communication and legal safeguards are essential to navigating this complex landscape.

Learning from history. China’s dominance in PCB manufacturing didn’t happen by accident. The government heavily invested in critical technologies and infrastructure while incentivizing domestic companies through policies that restricted foreign competition. If the US aims to build a competitive domestic industry, it must adopt similarly strategic policies – albeit ones that align with free market principles.

The bigger picture. This issue is about more than just PCBs. It’s about ensuring the resilience of industries that depend on PCBs, from automotive to healthcare to defense. A strong domestic PCB industry could serve as a foundation for broader technological leadership.

China remains the dominant player in PCB manufacturing, and for good reason: Its capacity, technology and pricing are unmatched. While the push for a “China+1” strategy is understandable, it’s not a panacea. Transforming the domestic PCB industry will take time, investment and collaboration.

Rather than relying on punitive tariffs, the US should focus on incentivizing private investment, modernizing infrastructure and developing its workforce.

But monetary incentives (or tariffs) alone will not be the cure. Statements such as “Buy American” or “leveling the playing field” are mere slogans. Simply put, what’s the goal or strategy? Will it be capacity or technology? Will it include the domestic manufacturing of raw materials and equipment required to build that technology?

These measures would not only address current supply-chain challenges but also position the American PCB industry for long-term success. Done right, this approach could lead to a stronger, more resilient domestic manufacturing sector, one capable of competing on the global stage. Otherwise, we will continue to waffle.

Greg Papandrew has more than 25 years’ experience selling PCBs directly for various fabricators and as founder of a leading distributor. He is cofounder of DirectPCB (directpcb.com) and can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it..