IPC International Community magazine an association member publication
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IPC COMMUNITY 12 SUMMER 2024 eight strategic sectors is projected to increase from 82.5% in 2023 to 88.9% by 2035 unless deci- sive strategic responses are implemented. In 2023, the EU produced €1.374 billion worth of PCBs against an estimated demand of €7.871 billion, resulting in a production-to-de- mand ratio of just 17.5%. By 2035, PCB produc- tion is expected to rise to €1,441.3 million, but demand is projected to increase to €12,980.8 million, leading to a production-to-demand ratio of only 11.1%. This growing disparity high- lights the urgent need for strategic intervention to bolster domestic PCB production capabili- ties. The overall share of electronics systems man- ufactured in the EU is also projected to decline. In 2023, the EU accounted for 16.7% of global electronics systems production across key eco- nomic sectors. This share is expected to fall to 15% by 2035, reflecting a slower growth rate com- pared to the rest of the world. This trend poses a threat to the competitiveness and viability of EU OEM and EMS companies as they struggle to keep pace with technological advancements, cost efficiencies, and innovation. To maintain its 2023 global market share of 16.7% in electronics systems manufacturing and assembly, the EU must achieve an additional 16.8% growth over the next 12 years above its currently projected growth. This would result in total electronics systems manufacturing and assembly in 2035, which is 11% higher than the current projection. This ambitious target under- scores the necessity for strategic investments and comprehensive policies to enhance the EU's competitiveness. Advanced packaging and IC substrates are other critical areas where the EU lags behind. As of 2023, the EU's share of the global mar- ket for advanced packaging and IC substrates across eight strategic sectors was 2% and 1.3%, respectively. Without strategic prioritization, these shares are currently projected to drop to 1.4% and 0.7% by 2035. The failure to strengthen European IC substrate and packaging capabili- ties undermines initiatives like the Chips Act and could lengthen supply chains and increase the EU's dependency on external sources. To support the EU's goal of achieving a 20% share of global semiconductor production by