PCB News - How can PCBA processing companies survive and develop under the

How canPCBA processing companies survive and develop under the "chip shortage" market?

Affected by the strategic competition between China and the United States and the fluctuations in the chip industry, since the end of 2020, chip prices have soared globally. The prices of conventional ICs from brands such as TI, ST, and ADI have soared several times, or even dozens of times. Supply chain vendors are miserable. Among them, the PCBA processing industry, which performed well in 2020, was once caught in a negative impact.

This price fluctuation has a wide range of effects, a bit similar to the mask and mask machine market when the new crown epidemic arrives. Many people and companies are hoarding goods and making huge profits in the bullish market. The fundamental reason for the surge in IC prices is the scarcity of supply. For example, the capacity of 8-inch wafer fabs has dropped sharply, and production is being suspended. In addition, the US government has also used some decree restricting IC exports to challenge China. Various reasons have superimposed on this market. According to estimates by industry insiders, this wave of market influence may continue until 2022.

Since the impact is inevitable, how should PCBA manufacturers actively respond? First of all, we must calm down from the market turmoil, carefully analyze the current customers, seize the orders in hand, and provide good services so that orders that are not affected by the IC market can run smoothly and control the survival risks of the enterprise. Secondly, actively analyze the internal operating costs of the enterprise, reduce unnecessary expenses and waste, and avoid rework of batch products. Furthermore, use extraordinary methods (such as low-price strategies, supply chain stocking, etc.) to seize areas that are not affected by the IC market, and focus on expanding new customers.

It is impossible for any industry to grow steadily forever. It will definitely experience various fluctuations like a stock K-line chart. As the downstream part of the supply chain, PCBA processing manufacturers must be able to control themselves. Too much attention to the macro market will inevitably cause anxiety to affect their true judgments.

iPCB is a high-tech manufacturing enterprise focusing on the development and production of high-precision PCBs. iPCB is happy to be your business partner. Our business goal is to become the most professional prototyping PCB manufacturer in the world. Mainly focus on microwave high frequency PCB, high frequency mixed pressure, ultra-high multi-layer IC testing, from 1+ to 6+ HDI, Anylayer HDI, IC Substrate, IC test board,rigid flexible PCB, ordinary multi-layer FR4 PCB, etc. Products are widely used in industry 4.0, communications, industrial control, digital, power, computers, automobiles, medical, aerospace, instrumentation, Internet of Things and other fields.