On April 25th, The European Institute for the PCB Community (EIPC) encouraged PCB industry companies to join EIPC by signing the urgent letter that it wrote to local government leaders. EIPC believes that urgent action is required by European Governments to support domestic PCB production and mitigate the real risk of it shrinking below critical mass.(Letter below)
The printed circuit board (PCB) is the building block for electronics systems providing electrical connection and physical structure to electronic systems with additional optical interconnect and thermal management.
The PCB is ubiquitous and an integral part of nearly all electronic products. The world market for PCBs in 2023 was estimated at US$ 87Bn, with over 90% being produced in Asia.
PCB production has been steadily migrating from Europe and North America to Asia since the dot-com crash in the early 2000s. Europe's domestic PCB production represented 16% of the world total in the year 2000, this declined to 2.3% in 2022. At the same time the number of European PCB manufacturers decreased from 555 to under 180, with the top 20 European manufacturers accounting for 60% of the production value.
The reduction in European PCB production has had a significant effect on the base materials supply chain with the number of full-scale PCB base material manufacturers reducing from over 20 in the1980s to only 2 currently. The supply chain for base material manufacturing has also been critically affected with the loss of the entire electronics glass fabric manufacturing sector, the reduction in copper foil manufacturing plants to a single remaining site, and the loss of all volume epoxy resin manufacturing capacity. The supply chain for all these major raw materials, which are essential for PCB manufacturing, now starts in Asia.
The European PCB manufacturing industry is uniquely disadvantaged relative to its Asian and North American competitors with high energy costs. PCB producers are fearful of the implications of continued high energy prices and believe that without internationally competitive energy costs there is a real risk of further decline in the number of European PCB producers.
European PCB production supplies many end markets, the largest of which is industrial electronics accounting for around 45% of the total, followed by automotive in second place with around 15%. High reliability medical electronics is also strongly represented. Aerospace and defence together account for around 12% of European PCB production with a value of around €200 million per annum, however, it should be emphasised that this provides a vital function in underpinning the strategically important European aerospace and defence industry supporting a total turnover valued at €578 bn and total employment of 3.57 m, including direct, indirect, and induced.
About EIPC
The European Institute for the PCB Community (EIPC), based in The Netherlands, is an international service provider to the European Interconnection and Packaging Industry.
Since 1968, the EIPC is servicing about 120 member companies, including suppliers of machinery and materials to the PCB industry, PCB Manufacturers, contract electronics manufacturers and OEM's. EIPC's Mission Statement: "The EIPC is a network of PCB professionals providing platforms to exchange business and technology information for the success of the European electronics industry."
Editor:King&Lulu
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