European PCB Industry at Risk
Printed circuit boards (PCBs) are fundamental components of electronic systems, providing electrical connections and physical structure. In 2023, the global PCB market was estimated at $87 billion USD, with over 90% of production originating from Asia.
Since 2000, European PCB production has been steadily declining—from 16% of global production to just 2.3% in 2022. The number of European PCB manufacturers has decreased from 555 to approximately 180.
The decline in European PCB production has had a domino effect on the supply chain of basic materials. The number of basic material manufacturers has dropped from over 20 to just two. This reduction in production has left Europe reliant on Asia for critical raw materials.
The European Institute of PCB Communities (EIPC) emphasizes that the European PCB industry faces high energy costs, placing it at a disadvantage compared to Asian and North American competitors. Without a change in this trend, the number of European PCB manufacturers is expected to continue to decline.
European PCB production primarily serves industrial electronics (45%), the automotive industry (15%), and medical electronics. The aerospace and defense sectors constitute approximately 12% of European PCB production. EIPC warns that ongoing production declines could jeopardize Europe's strategic independence and increase dependence on imported PCBs.
Europe has become increasingly dependent on PCB imports from Asia, with 65% of imported PCBs now coming from China. Failure to reverse this trend could lead to further production declines and increased reliance on imported PCBs.
Alun Morgan, President of EIPC, highlighted these concerns as the keynote speaker at the Evertiq Expo in Berlin, stressing the urgent need to support the European PCB industry. While the European Union recently passed the Chip Act, strengthening its position in the global semiconductor industry, support for PCBs remains narrowly defined, leaving the European PCB industry outside efforts towards technological sovereignty. While the European Chip Act and the United Kingdom's National Semiconductor Strategy are steps in the right direction, chips alone cannot ensure Europe's technological sovereignty without support for PCBs.
The Strategic Electronics Manufacturing Act (SEMA) could expand support across the entire electronics manufacturing value chain. EIPC urges European governments to take swift action to support domestic PCB production, preventing further decline and loss of technological independence.