High demand: Is ordering printed circuit boards more expensive?

Productronica 2019 took place in Munich in mid-November. The world's leading trade fair is internationally recognized, and the development and production of modern electronics is presented there. The central themes of productronica 2019 in the Bavarian capital were the opportunities offered by the expansion of the new 5G mobile communications standard in Germany as well as the topics of EMS and PCB.

The dominant topic of the fair is the cost development, in addition to the technical development and increasing functionality of the products. In Asia, the price of printed circuit boards has risen noticeably this year. China - the cheapest supplier for a long time - is struggling with current shortages in the face of various political activities.

Small companies dominate

There are around 2,500 printed circuit board manufacturers worldwide, and most companies have only one location. That can be concluded from the worldwide number of just over 3,000 plants. They are often small companies, most of them operate in China. Europe and North America are responsible for five percent of global production. Just one percent of global production came from Germany in 2018, and the United States produces four percent. After China with a share of 54 percent, South Korea is represented with a market share of 23 percent. China wants to get away from the image of a cheap country for products. This also affects the circuit board industry. Small companies are closed, workers are trained and used in other areas. Since 2016, environmental laws have also been implemented more consistently in the Middle Kingdom. This led to a wave of plant closings in China.

China remains the world market leader

The closure of smaller plants and the increasing demand for printed circuit boards will not lead to a permanent shortage of goods. Small factories are closing, but more and more large factories are being built in China. Companies are required to make a minimum investment and achieve a minimum turnover. With printed circuit boards, this will only be achievable with gigantic production. In the Middle Kingdom, companies are also required to continue developing simple products. Inexpensive printed circuit boards from China will soon be a thing of the past. Customers who order electronics and printed circuit boards on the Internet will receive higher quality products in the future. In view of the growing demand for printed circuit boards, this is urgently necessary. Above all, the expansion of the 5G mobile communications standard in Germany is leading to huge demand.

  

More than just fast internet

5G will trigger a real boom in printed circuit boards in Germany. German companies that manufacture printed circuit boards can also benefit from this. The new standard for mobile communications not only ensures a much faster Internet. 5G is of considerable importance for the industry. All communication, the Internet of Things and logistics are just as dependent on the new standard as the areas of security and media. The entire technological development and the changed situation in China lead to a lower number of printed circuit board manufacturers in the long term. However, there are larger capacities. Companies will have to look for new suppliers and delivery channels. It is unclear how the price of printed circuit boards will change in Germany. The previously low price for products from the Far East will probably increase. In this context, consumers in Germany should consider whether they should switch to high-quality printed circuit boards from home.