Ways to avoid redesign due to discontinued parts.

Electronics found inside infrastructure items such as buses, trains, signage, control units – anything that requires a printed circuit board assembly – are usually expected to have a long lifespan of continuous operation.

Each of those electronic systems and their corresponding subsystems can be affected by component obsolescence, however, especially when the components placed into them today have a purchase availability of only about 10 years.

This is because changes in design, improved component speed and efficiency, a drop in demand, etc. lead to component replacement and can make older components obsolete.

That’s why component obsolescence management is so important for OEMs.

Supply chains are stronger when spurred by private investment.

Both the Trump and Biden administrations have taken measures aimed at bringing manufacturing back to the US. But realistically, when will that happen?

And how much longer will we ask domestic PCB buyers who must rely on Asia for product to pay a tax for boards they cannot get made in a reasonable amount of time in the US?

In late May the US trade representative announced one more year of reprieve from the 25% tariff for two- and four-layer rigid printed circuit boards.

While two- and four-layer boards represent only a narrow portion of the PCBs manufactured in China, an exemption continuance is good news and will provide some relief to many OEMs and EMS companies struggling with supply chain challenges.

Take proactive steps to minimize the impact of growing material prices.

Overseas board manufacturers have received formal notifications from major laminate suppliers about upcoming double-digit price increases for the raw materials required to produce printed circuit boards.

Compared to this time last year, gold and copper prices have risen significantly due to inflation, the push for green energy, and speculative demand and capacity limitations for these precious metals in the coming years.

While most notifications were heavy on apologies but light on details, one was specific about the increases:

Capacity is about to peak, and demand has slackened.

Printed circuit board buyers can capitalize this year on cost-saving opportunities if they’re smart about it. Here are some factors to consider:

• Compared to a year ago, fluctuations in material pricing have settled.
• Worldwide semiconductor revenue declined by 11% and overall personal computer shipments fell almost 15% last year.
• Lead-times from Asia are relatively short compared to this time last year.
• PCBs manufactured in China and then imported into the US still face a 25% tariff. But the tariff exemption on two and four-layer rigid boards has been extended through the end of May 2024.
• Speaking of tariffs on boards made in China (as well as “Out of China” policies being adopted by some customers), new board houses are being built in India, Thailand, Vietnam and Malaysia to help offset those tariff costs and offer purchasers the option to buy elsewhere.
• Many companies in China are allowing employees to leave early to enjoy the Chinese New Year holiday because business there is down.