PCB industry boosts supplier, technology pools

China’s PCB industry is leveraging market recovery to develop its supplier and technology bases further in a bid to become the world’s most-advanced hub for the line. The country is the largest production center, displacing Japan in 2007 or 17 years after entering the sector. At present, its core competitiveness lies in low cost. This advantage, however, is increasingly being eroded by the appreciating yuan and the rising material and labor outlay. The last has grown nearly 100 percent from decades ago.

This year, the industry is forecast to expand by more than 5 percent after slumping in 2009. The telecom, industrial and automotive electronics sectors are expected to drive demand in export and local markets.

The China Printed Circuit Association is urging the government and domestic industries to help local PCB makers, especially private ones, compete with foreign-invested rivals. CPCA secretary general Wang Longji said homegrown enterprises have the potential to become large operations in two or three years and drive the line’s development so they should be supported.

For its part, CPCA has established the Environmental Clean Innovation Alliance and the Digital Inkjet Printing Technology Innovation Alliance to push for the adoption of environment friendly practices and methods. The second group has among its members 11 companies representative of the industry chain, and two universities.

Inkjet printing eliminates traditional PCB tooling and time-consuming procedures and the use of certain raw materials. It has no wastewater output, making it a cost-effective and “green” solution. At present, the technology is also applied in thin-film solar cells and RFID products.

Wang is confident local companies will achieve much in these twin objectives and reduce the gap with major competitors in the next three to five years.