In this panel, filmed on location at Productronica 2023, we uncover the state of the European printed circuit board (PCB) industry. Joined by our insightful guests Dieter Weiss of in4ma, Dirk Stans of Eurocircuits and Michael Müller of Polytron-Print, we probe the alarming statistics that show Europe’s share of the global PCB manufacturing at a mere 2.2%. Down from over 20% two decades ago. Hear the panel's call to action for Europe to reduce its dependency on far-eastern manufacturing and forge a sustainable ecosystem within its borders. We back the curtain on the pivotal role of supply chains, government-supported institutions, and why sourcing PCBs from European suppliers could be the game-changer the industry needs.
With the guidance of our expert guests, we cut through the noise to underscore the urgent need for a unified voice in the industry, challenging the status quo, advocating for collaboration among different industry associations, all for an impact on government decisions and initiatives. We turn the spotlight on the importance of a joint database for components and the political courage required to bring this to fruition. This panel is a rallying cry for all associations to seize the reins and drive towards a brighter future for the electronics industry in Europe.
PCB@C-Level was generously hosted at productronica 2023 by Adeon technologies - learn more at https://www.adeon.nl
Like every episode of EMS@C-Level, this one was sponsored by global inspection leader Koh Young (https://www.kohyoung.com) and Adaptable Automation Specialist Launchpad.build (https://launchpad.build).
You can see video versions of all of the EMS@C-Level pods on our YouTube playlist.
In this panel, filmed on location at Productronica 2023, we uncover the state of the European printed circuit board (PCB) industry. Joined by our insightful guests Dieter Weiss of in4ma, Dirk Stans of Eurocircuits and Michael Müller of Polytron-Print, we probe the alarming statistics that show Europe’s share of the global PCB manufacturing at a mere 2.2%. Down from over 20% two decades ago. Hear the panel's call to action for Europe to reduce its dependency on far-eastern manufacturing and forge a sustainable ecosystem within its borders. We back the curtain on the pivotal role of supply chains, government-supported institutions, and why sourcing PCBs from European suppliers could be the game-changer the industry needs.
With the guidance of our expert guests, we cut through the noise to underscore the urgent need for a unified voice in the industry, challenging the status quo, advocating for collaboration among different industry associations, all for an impact on government decisions and initiatives. We turn the spotlight on the importance of a joint database for components and the political courage required to bring this to fruition. This panel is a rallying cry for all associations to seize the reins and drive towards a brighter future for the electronics industry in Europe.
PCB@C-Level was generously hosted at productronica 2023 by Adeon technologies - learn more at https://www.adeon.nl
Like every episode of EMS@C-Level, this one was sponsored by global inspection leader Koh Young (https://www.kohyoung.com) and Adaptable Automation Specialist Launchpad.build (https://launchpad.build).
You can see video versions of all of the EMS@C-Level pods on our YouTube playlist.
So, dita, let's start with you. We've talked a lot about the printed circuit board industry, both off-camera and on-camera. Why do you think it's so critical and what is the current state of affairs?
Speaker 2:We just finished the statistics, the global statistics for the PCB industry, and Jörg only has a share of 2.2% of global PCB manufacturing compared, for example, to 3.8% in the United States. Lately we have been talking about the CHIPS Act and how critical it is that we only have 10% of global supply being manufactured in Europe, but in actual fact, the situation in Europe and in the United States regarding printed circuit boards is much worse, and we all know a semiconductor is insufficient if it doesn't have a PCB. So we need to now we have done the second step before we did the first by just looking at the CHIPS Act. Now we need to take the first step and do something about this dependency on far-eastern manufacturing, and the objective is not to bring back 100% of the manufacturing, but we should be able to manufacture printed circuit board for the European critical infrastructure in Europe.
Speaker 1:Okay, and you talk about infrastructure. Dirk, you made some really good points off-camera about the importance of government-supported institutions actually committing to buying as much of their materials, including their printed circuit boards, in Europe. How significant do you think an initiative like that might be?
Speaker 3:I think it's very, very significant because you you tackle the problem at the source, and the sources is our engineers, is our young people learning to become an engineer tomorrow and if they grow up, if they grow up in their studies with European suppliers, at least they know us, and now they don't. And actually the European Commission, they give the good example and in many things they do. If their institutions buy something, they buy European origin. It's a rule already for 30-40 years, so why not do that in all the countries? And that would already help, because then our students grew up, grew up, will grow up, with boards from here, with suppliers from here, unless now they grow up with online suppliers from China.
Speaker 1:Yeah, no, it makes absolute sense. Michael, you made a very good point when we were talking earlier about this level of the industry and not just bringing back but stemming the decline. If the decline continues, there's a kind of a critical mass ecosystem problem, isn't it, where, below a certain size, you end up with an industry that's not well supported.
Speaker 4:Yeah, that's the problem. I think we are already at that point of the critical mass. If our industry gets smaller and smaller, our suppliers here will be no longer interested in supplying machines, chemistry, drive or whatever to us. I see this as a major problem in the future that we as a mid-sized company can source most of our products in Europe because we are already forced to get some materials from Asia. For example, drive home a lot of stuff is coming from Asia, base laminate is coming a lot of stuff from Asia and also. But if you have to go for equipment for machines, it's going to be really, really difficult.
Speaker 1:Yes, and Michael, you're actively trying to select European manufacturers all the way through your supply chain, as your customers do.
Speaker 4:Yes, I mean that's one thing. We just bought a new etching machine from a German supplier. I could have saved 300,000 euros if I would have bought a Chinese machine. But I mean on one side we are telling our customers by German, so we have to do the same. And also, I mean you have to look at the whole package. If you look for equipment or if you look for PCB, you're not only look at the price, look at the whole package, service, quality. You get someone when you need someone and you don't have to wait for two weeks or whatever. So I think that's the critical point also for most of our customers if they need support, they need it now and not in two weeks.
Speaker 1:Yeah, it's walking. That's walking the walk rather than just the talk, dirk, with respect to your business, when you look at your customers, obviously most of them are European, but when you look further down your supply chain, are you able to maintain a strong European presence there?
Speaker 3:Yes, we only do business in Europe and, like Michael, we also buy our stuff in Europe. What machines are concerned, of course, the laminates not all of them we try to buy as much as possible locally, but there is not much left in that respect here in Europe anymore and on many fronts. Also the point that I was making earlier to do something about students and so on. Then also, we support students. We even have student accounts in Euro circuits, and rather than giving $30 to DHL to bring the boards from China to here and pay $5 for the boards, why not give me $35? And then it's a lot more sustainable. You don't have to fly 10,000 km the boards from the other side of the world over here, I mean you can buy them at the same student price.
Speaker 1:Yeah, and it's interesting you talk about that, because the supply chain has a responsibility in terms of sustainability and so forth, and that's something that is not just the Europeans care about, but it's a financial burden on your business and it's something that is perhaps tilting the playing field a little bit against you in terms of Asian competition. Dieter, I wanted to ask you, with your role as an IPC, but also the other trade associations you work with the government activity and lobbying you're involved with. What can associations do? What can government do to try and stem this tide and to try and increase?
Speaker 4:And my co-spire no bureaucracy. I mean that's a total disaster, sorry.
Speaker 2:Yeah, well, at the moment, what we do, we are collecting all the data. It is difficult to convince politicians in Brussels because you have all different kind of people there. You have people who represent the unions and they all have a different target. But we first of all need to bring all of them on a common denominator and make sure this is about making sure we are able in Europe to manufacture critical infrastructure, electronics in Europe, and that goes all the way along the supply chain. And there is a long way to go, and we are at the moment focusing on PCBs and EMS, but that is not sufficient.
Speaker 2:In the next step, we'll have to focus on laminates, and when we talk about laminates, we have to talk about resins, we have to talk about copper foil, we have to talk about glass fabric. All of that is an issue and with some of that we see solutions. But the overall problem is always pricing. Not only European PCBs are more expensive than Chinese, european laminates are more expensive than Chinese laminates, and so it goes down the drain and we need to pull that together and we have a lot of associations in Europe which we try to combine to show up in Brussels as a united force with united strength and Derrick, dirk and Michael are helping on that as well with their input to convince the European Union. And we don't have much time. Next year we are going to have elections in Europe, so the people we talk to in two years might be totally different than the ones we talk to at the moment, and that's why time is off the essence, yeah we need to move on.
Speaker 1:You took a sharp intake of breath as Dieter was talking there. Are you exiled? Do you believe these things can happen?
Speaker 4:I don't know if things can happen. We have to work on it. If we don't work on it, things will not going to happen. But as an example, if we buy laminate from Asia, we have to pay import duty. If our customers buy Finnish boards, they don't pay anything. So that would be a good starting point. To level out, we are already more expensive in Europe, but we shoot ourselves in the foot. It's a little bit difficult, but we have to work and we have to talk to as many people as possible. But the situation will change because bureaucracy will kill us. In Germany I have a new machine since four months in my shop. I'm still waiting for the approval. There's not a single drop of chemistry inside, because I'm not allowed to In this time. China nobody's waiting for four months for an approval.
Speaker 4:Yeah, it's difficult and we have to change this, and we have to change this fast.
Speaker 1:Yeah, and you have to change for legislation and initiatives that add value, not legislation and initiatives that slow you down and create bureaucracy. You talked about a few things when we were having a coffee earlier that are that are just simple, inexpensive things that you know that the government can do and you talked a little bit about, at least in the education system. But it goes beyond that. What do you wish government would do to make it feel like a level playing field for the industry? Is it as simple as a tariff on imported printed circuit boards?
Speaker 3:Well, what the Americans are trying to do is, of course, is a good idea and say, ok, if you buy European, you can deduct 25 percent of the invoice from your taxes. That would be, of course, very good. I think that will level the playing field in one hit. But there are many other things that that politics can do. I mean, we are also assembling prototypes, and one of the biggest worries is always to have a good database of components. So if, if, if, like many things in food if the government would say OK, we make one joint database of components and then and everybody who wants to bring a component into the market needs to deposit the technical specifications of that component in a unified database that everybody can access that would be. That would be an amazing thing, and I think it was not a lot that you need for that, only a little bit of political.
Speaker 1:Yeah Well, political courage is exactly it, isn't it? And you know, I think the point you make about political courage, about the, you know, the people in government, growing some is really, is really significant. But I also think you know we're talking about having a voice. You talk about the critical mass of the industry. Smaller the industry becomes, the smaller our voice becomes. So there is a you know there's an urgency in that in terms of let's make sure the industry doesn't get any smaller, because then it will have less of a voice. Deater, I'm going to give you the final word, not the final thousand words, but the final word. What do you think can be done and what do you think is the most urgent need?
Speaker 2:So most urgent need is that different associations over here in Europe joint forces and work together, and we all know that we need to rush. We are all working heavily on it, with the support of many active players in the industry, and I'm convinced we're going to achieve something. I cannot guarantee whether it's going to be satisfactory to what we're looking for, but it's the first step and we need to all take it together.
Speaker 1:Yeah, and take. Take that initiative with some urgency, but, as you say, with a single voice, because of every association lobby separately, they'll all lobby for something different and they'll end up with a bunch of voices that are not, that are not really understood and don't have clarity. Gentlemen, thanks for your thanks for your input. It's been really interesting today to understand where the industry is now. I started my career in printed circuit boards in the in the eighties and it was a very different world in Europe back then. So I hope we can return to towards some of those housing days.