Home > News > What is your plan to ... supply interruption?
Back to News List

What is your plan to obtain a better, future-proof pcb supply, or currently what is your plan, breaking down the current supply interruption?

'Considering the current "resource crisis" in the world of electronics and all its derivatives, the choice of supplier is evident and fundamental. We have to be sure about the flexibility and the assurance that it has the necessary resources not only to offer good price / quality, but also to provide an uninterrupted supply of PCBs. '

Market demand

Increasing demand for electronic equipment and telecommunication devices is anticipated to drive the growth of the global printed circuit board market. The global printed circuit board market was valued at $53.21 billion in 2020 and is expected to reach $69.32 Billion by 2027 with a CAGR of 3.85% over the forecast period. During the COVID-19 pandemic, the demand for electronic devices has increased due to social distancing. Online classes and work from home led to the demand for smartphones, laptops & tablets; requirements for new medical equipment, etc. have been increased.

Cost and Supply

What makes a PCB expensive? Factors That Affect PCB Cost.

Three factors :

  • the type of material
  • the size of the board
  • and the number of layers

Other factors that can also impact price include the finish and the size of the holes, including these eight.

Commodity prices continue to rise, with JP Morgan speculating that we are seeing the start of a new cycle, driven by the post-pandemic recovery, combined with massive fiscal stimulus, the reboot of many global economies and a weaker dollar. Copper, iron ore and precious metals recorded increases of 20% to 30%, with copper increasing by approximately 20% due to increased demand and reduced supply.

Increased demand for PCBs and shortages of foils are negatively affecting material delivery times and the continuing shortage of supplies. Both prepregs and copper-coated laminates are scarce. This situation is expected to last until the third quarter and will begin to recover to some extent in the fourth quarter.

Demand remains exceptionally high. It is estimated that such capacity pressures will last until August / September and that such capacity limitations will affect overall production times as well as material delivery times.

While this situation is affecting all types of PCBs, we see a greater impact on PCBs that require base copper foils> 2oz (70µm) and with not-so-standard or specialty materials.

The following are some of the main challenges facing PCB manufacturing:

  • Logistics inefficiencies and infrastructure bottlenecks lead to slower processing times and higher costs.
  • Various levels in the electronics industry, from parts to finished products, are operating with contradictory policies.
  • Inventory prices rise due to an inadequate production chain and the unavailability of many essential raw materials.
  • Quality: You should not only use parts from registered and reputable suppliers, but also look for indicators of consistency in the materials you are using. Is there a quality improvement program in place daily? Have the parts been assembled, packaged, and treated to ensure good friction and moisture control? Are the components properly traceable and registered to meet regulatory standards on printed circuit board assembly manufacturing?

With our manufacturing bases in the UK and around the world, and with our extensive network of carefully selected Asian manufacturer partners, we ensure that much needed continuity. In turn, we strive and organize to be able to meet all delivery times. The continuity we have, coupled with an attractive price and the added value of having a solid inventory management process, allows TCL ELEKTRONIKA to instil some respite in a fluctuating market. It is a market that is becoming increasingly burdened with uncertainty due to the issues raised in this article. This is very much in line with the conversation we are having with new customers.

We have 6 million cards in stock! We ensure the flexibility of a global manufacturing network by providing that level of stability that technology companies need in a market that has not yet indicated that it will establish itself soon.

Date : 08-09-2021