IPC International Community magazine an association member publication
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IPC COMMUNITY 10 SUMMER 2024 INDUSTRY INTELLIGENCE By Shawn DuBravac, IPC Chief Economist Building a resilient electronics manufacturing base in the EU Electronics are ubiquitous, underpinning everything from personal devices and electric vehicles to wind turbines and industrial sys- tems. These technologies are essential to nearly every aspect of modern life, making a thriving electronics manufacturing sector crucial for the EU's industrial resilience, regional security, and technological advancement. As industries increasingly depend on electronics for innova- tion, the role of electron- ics manufacturers as key facilitators of Europe's digital and environmen- tal transitions increases significantly. The EU's Chips Act sig- nifies a strategic com- mitment to bolstering a key segment of the elec- tronics sector. While semiconductors are cru- cial, that narrow focus neglects the other essen- tial parts of the broader electronics ecosystem, such as printed circuit board (PCB) fabrication, electronics manufacturing services, and semi- conductor packaging. Enhancing these industry segments is vital for developing a robust Euro- pean electronics manufacturing ecosystem that supports industrial resilience, advances the dual green and digital transitions, and fosters Euro- pean innovation. Over the past two decades, the EU's share of global PCB production has fallen dramatically. In 2000, Europe accounted for 13.8% of global PCB manufacturing; by 2023, this share had dropped to just 2.2%. This decline is set against the back- drop of global PCB production that has more than doubled, indicating a significant erosion of the EU's competitive position in this critical area. The EU's dependency on non-EU PCBs across From Chips to Systems