PCBs are among the world’s most important and widely used technologies. They’re at the center of industries ranging from automotive to healthcare, defense, and, of course, computing. It’s just a reality of modern life that everyone relies on PCBs in one way or another.

This makes PCBs, along with the materials required to produce them, huge players in the global supply chain.

Materials shortages, logistical challenges, production inefficiencies, and even global politics all have a major impact on the production of PCBs. Understanding the depth and range of potential supply chain issues is the best way for companies to protect themselves against unforeseen shortcomings.

In this guide, we’ll provide:

• An overview of major supply chain issues affecting PCBs.
• Some practical solutions to supply chain problems.
• A look into the future of the PCB supply chain and how it may develop in the coming years.

To start with, let’s break down the nature of PCB production to better understand its true position in the global supply chain.

Supply Chain Issues in PCB Manufacturing

You can think of the PCB supply chain as a combination of 4 major factors:

• Raw Materials
• Logistics
• Manufacturing Processes
• Quality Control

Each factor has its own unique impact on PCB supply chain issues.

The Many Raw Materials Shortages That Can Cause Delays

Producing PCBs is a complex process. Between the raw materials needed for the physical boards and materials needed for the manufacturing process, there are many places where a bumpy supply chain can slow things down.

Materials like these need to be available in the right quantity in order to facilitate production:

• Substrates: This includes substances like FR-4 and CEM-1 & 3.
• Conductive Materials: Copper foil and copper-clad laminate are essential for the electrical circuits PCBs rely on.
• Dielectric Materials: Pre-impregnated composite fibers, like fiberglass, bond layers of PCBs together. Solder masks prevent oxidation and solder bridging.
• Chemicals for Etching and Plating: Chemicals like ferric chloride, ammonium persulfate, and copper plating solutions are needed for the etching process.
• Packaging: PCBs require special packaging materials that control both moisture and static.

Most materials are relatively easy to source due to established supply chains and multiple suppliers. However, some specialized materials, such as silver ink, polyimide film, and precious metals, might present more sourcing challenges due to higher costs and limited suppliers. 

If a single one of these materials is delayed or in short supply, it can have cascading effects on the entire PCB supply chain.

How Logistical Hurdles Cause Supply Chain Issues

The global nature of PCB manufacturing means that logistics and transportation are critical components of the supply chain. However, recent disruptions in global shipping, such as port congestion and container shortages, have significantly impacted the flow of goods. 

The COVID pandemic was a perfect example, and the world is still working on fully recovering from its effects.

Most manufacturers today, including PCB manufacturers, rely on Just-in-time (JIT) manufacturing strategies. Since these strategies rely on accurate delivery timelines, they are particularly vulnerable to missing or delayed shipments. 

Logistical delays can bring production lines to a screeching halt while waiting for essential parts. This, in turn, affects the overall efficiency and output of the PCB manufacturing process.

How Production and Technological Inefficiencies Cause Supply Chain Issues

The PCB manufacturing process involves several complex steps, each requiring precision and efficiency. However, technological and process inefficiencies can hinder this process.

For example,

• Outdated equipment can lack the precision and speed of modern machinery. This can lead to higher defect rates, necessitating reworks that slow down production.
• Manual soldering and inspection processes also introduce potential for human error.

While the above examples are fairly easy to correct, others may be less visible but no less costly:

• Poor Workflow Designs: Inefficient layout of manufacturing lines can lead to unnecessary movement of materials and workers. 
• Inadequate Training: Operators who are not adequately trained on new machinery can also cause delays.

Automation can help streamline tasks, but ultimately, it’s up to each PCB manufacturer to assess their current processes and make the upgrades they need to stay competitive.

How Shoddy Quality Control Causes PCB Supply Chain Issues

Regardless of what materials are used or how a board is assembled, faulty or inaccurate PCBs are a major disruption. They must be avoided at all costs, which is why quality control is the last but most important aspect of a robust PCB supply chain.

A single defective PCB can lead to the failure of an entire electronic device, causing significant financial and reputational damage to all stakeholders. In the worst-case scenario, faulty boards can pose a real danger to the safety of consumers.

To avoid this, manufacturers implement stringent quality control measures to ensure that every PCB they produce meets standards. Quality control processes like automated optical inspections (AOI), in-circuit testing (ICT), and functional testing all help manufacturers catch issues before they become major problems.

Ultimately, quality control measures don’t just prevent damages due to bad PCBs. They help optimize production processes by spotting issues early, allowing manufacturers to make corrections and keep the PCB supply chain flowing smoothly.

How PCB and Electronics Manufacturers Can Avoid PCB Supply Chain Issues

Between the many materials involved, the logistical hurdles that need to be cleared daily, and the various in-house production processes required, there’s no end to the number of ways the PCB supply chain can be disrupted.

Avoiding them all may feel like a game of whack-a-mole, but it doesn’t need to be that way.

Certain practical steps any PCB manufacturer can take to mitigate or completely avoid supply chain issues are listed below.

Plan for Material Shortages

You can’t count on advance warning of material shortages. Therefore, it’s best to:

• Diversify Suppliers: Instead of relying solely on one supplier for any given material, you should source from multiple suppliers in different regions, thereby minimizing the risk of shortages due to regional disruptions.
• Amass Inventory Buffers: Keep an additional two months’ worth of key materials like epoxy resin and fiberglass in inventory to cushion against sudden supply chain interruptions.
• Recycle Materials: Collect and process scrap PCBs to extract valuable materials like copper and reuse them in production.

Optimize Logistics

Find reliable logistics partners that will help you:

• Improve Tracking and Planning: GPS tracking shipments will allow you to monitor progress and reroute deliveries in case of traffic or port congestion.
• Find Local Warehousing Solutions: Lease warehouse space in strategic locations close to major production facilities to ensure quick access to essential parts.

Make Continuous Technology and Process Improvements

There will always be at least one technology or process bottleneck in your production process. The faster you can identify and expand those bottlenecks, the more efficiency gains you’ll realize over time:

• Embrace AI and Automation: AI can revolutionize your maintenance process and help you avoid unexpected equipment failures.
• Upgrade Old Equipment: Stay aware of emerging manufacturing technologies that might make your process easier or more productive.
• Continuously Train Your Workforce: Conduct regular workshops and training sessions for staff to keep them updated on the latest manufacturing technologies and best practices.

Future Trends in PCB Supply Chain Management

The future of the PCB supply chain is going to be shaped by evolving technologies and legislative changes.

Major Trends

The following trends are likely to continue in the coming years, and they’ll all play a major factor in how the PCB supply chain looks:

• Increasing Demand: The demand for PCBs continues to grow, driven by advancements in consumer electronics, automotive technologies, and industrial automation.
• Supply Chain Disruptions: Recent global events, such as the COVID-19 pandemic and geopolitical tensions, have highlighted the fragility of the PCB supply chain.
• Component Shortages: A significant issue is the ongoing shortage of essential components like semiconductors, impacting PCB production timelines.

Legislative Impacts

• CHIPS Act: In the United States, the CHIPS Act aims to bolster domestic semiconductor manufacturing, indirectly supporting the PCB industry by ensuring a steady supply of critical components.
• Environmental Regulations: Stricter environmental regulations, particularly in Europe, are pushing for more sustainable manufacturing practices in the PCB industry.

Technological Advances

• Automation and AI: The adoption of automation and AI in manufacturing processes is enhancing production efficiency and reducing costs.
• Advanced Materials: Innovations in materials, such as flexible and biodegradable substrates, are transforming PCB design and manufacturing.

Imagineering is a PCB Partner that Knows how to Avoid Supply Chain Issues

The PCB manufacturing industry faces a myriad of supply chain challenges. Raw material shortages, logistical hurdles, and production inefficiencies can all slow down production and increase costs. 

Trends such as increasing demand, supply chain disruptions, and legislative changes will shape the future of PCB supply chain management. Electronics manufacturers will need a PCB partner that has a solid grasp of these supply chain issues and how to avoid them.

Imagineering is here to help. For 37 years, we’ve been helping our customers produce unique, high-quality PCBs and keep the supply chain moving smoothly.