Issue link: https://iconnect007.uberflip.com/i/1506834
SEPTEMBER 2023 I SMT007 MAGAZINE 37 ity to reinvest in their businesses, their equip- ment, and the latest technology shis. PCB manufacturing in Europe has declined to 2% of the global market. In turn, EMS com- panies, while poised to partner to deliver on Europe's manufacturing needs, also face capacity constraints. e grit and creativity that allowed many companies to survive over the past 20 years simply will not work over the next 20 years. Advancements in semiconductor technology are further placing daunting, stringent, and costly new demands on both PCB and EMS companies. Demand for electronics globally, driven by global megatrends, is growing steadily. But this growth risks largely bypassing Europe, as OEMs seek greater capabilities and capacities from the most sophisticated manufacturing facilities in Asia. Without significant change, the electronics industry in Europe will expe- rience limitations in capacity and innovation capability, increased lead times, and higher prices on allocations for PCBAs in all modules and systems impacting semifinished and final products across all industries. European PCB SWOT PCB Industry Snapshot: PCB fabricators produce the boards that mechanically support and electrically connect components, includ- ing chips, using conductive copper traces, pads, and vias on laminates. Without PCBs, the hardware and soware found in every electron- ics system cannot function. PCBs are becom- ing increasingly sophisticated to accommodate ever smaller, more powerful electronics. Today, the PCB is no longer a passive base where components are placed, but an inte- gral part of the final product. Michael Gasch of Data4PCB estimates annual PCB production in the EU is approximately €2 billion Euros or roughly 2% of global production. is is a steep decline from the 1990s when the EU commanded approximately 20% of global pro- duction. In the past 20 years, according to Dat- a4PCB, the number of EU PCB fabricators has also decreased precipitously, falling two- thirds, to fewer than 180 facilities and employ- ing approximately 15,000 workers. Over this time, the EU has become highly dependent on China, which now accounts for some 65% of total EU PCB requirements. Figure 1.