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Talking about the current situation of PCB industry

2021-10-18   

PCB is one of the most important components of electronic products and equipment, we often need to use it in our daily life. Its application scope is wide, covering consumer electronics, medical industry, automotive electronics industry, security industry, light industry and aerospace fields. As we all know, since the beginning of 2020, the spread of the COVID-19 has brought a huge impact on the global economic development, all industries face significant headwinds. So what is the current situation of the PCB industry under such circumstances?

In early 2020, the COVID-19 outbreak suddenly occurred, and many manufacturers responded to the call of the state by suspending production in order to control the epidemic and prevent its spread. In March of the same year, with the steady progress of China's epidemic prevention work and policies, the impact of the epidemic on PCB factory production began to gradually improve after the resumption of work and production. However, the ensuing problems have made it more difficult for many PCB manufacturers.

The first problem is the price increase, copper foil, copper clad laminate, epoxy resin, copper, gold, electronic components, etc, have been increasing in price one by one, the validity period of the quotation has been shortened sharply, make be caught off guard. The second problem is the shortage of raw materials, compared with the price increase, the worst thing is to spend money without being able to purchase materials. Copper cladding and epoxy are in short supply as supplies plummet. In addition, many electronic components and chips are severely out of stock and their prices have skyrocketed.

This year, vigorously promote the policy of conserving energy and reducing emissions, the government has issued a policy of "limiting electricity use". Some energy-intensive provinces, such as northeast China, Zhejiang and Guangdong, have started Limit electricity consumption and reduce production capacity. The implementation of "limit power consumption" policy has made the PCB industry worse. At this stage, it seems that the impact is not very big and can be dealt with by restocking and other ways. But if this is the case for a long time, there may be delays in delivery or even default. Many factories began to "work four days and rest three days" production schedule, which to some extent reduced employees' salary and their quality of life was forced to decline. Factories may have trouble hiring workers if things go on like this.

Chip shortages, rising raw material prices and shipping rates, the impact of COVID-19, "limit electricity use" policies and other factors, which has brought some negative influence to many PCB enterprises. But all difficulties will be solved one day, and everything will be better.