The electronics world is changing the game. Europe has a chance to regain what it has lost.

Geopolitical tensions, pandemics, increasing pressure on sustainability and manufacturing data security are changing the global PCB market. In this article, we will therefore look at how manufacturing of PCB in Europe is growing in importance and what benefits and challenges it brings.

Changes in the global market

The global PCB market is experiencing significant changes. Why is this happening? Geopolitical instability, disruption of supply chains and a growing general sympathy for locally manufactured products. These factors are also creating a higher demand for manufacturing  of PCB in Europe.

On the basis of these facts, we can say that the production of printed circuit boards in Europe is mainly a strategic advantage. Customers are more often looking at other manufacturing options outside China, which is a great opportunity for European manufacturers who can offer years of know-how, stable production, fast delivery time and production data security.

Gaining Asia's Marginal Share of PCB Production

It's no secret that Asia holds the majority share of the world's PCB production. It has gained this share due to its very low prices, the availability of state-of-the-art manufacturing technologies, and its ability to deliver high quality PCBs in a relatively short time. With low PCB prices, European manufacturers will find it difficult to compete. Asia has much lower energy prices, lower labour costs and less government regulation. Nevertheless, changes can be observed in the global PCB market.

The COVID-19 pandemic made the risks of global supply chains very clear. Companies that relied on manufacturing plants in Asia struggled with long lead times and frequent delivery errors during the pandemic. Five years after the pandemic, these problems are compounded by high slab shipping costs, exchange rate differences, tariffs, political tensions and trade wars between China and the US. These are risks that are not only difficult to predict, but further reduce the customer's final product margins.

What European manufacturers can offer

European PCB manufacturers can offer solutions to these risks. In terms of logistics, with European manufacturers, the customer can reliably control the supply chain and thus identify potential risks early on. The short production time also shortens delivery times and provides more stability to the supply chain by locating production closer to the assembly plant.

Another strength of European manufacturers is their rapid response to customer requirements. Fast communication and follow-up also contribute to a stable supply chain.

Sustainable production by European manufacturers is almost a given thanks to clearly defined regulations and control mechanisms. Waste management in Europe is also at a high level.

The last important factor is the security of European manufacturers' data. For electronics in the aerospace, military or medical sectors, the confidentiality of circuit board manufacturers is essential. Unlike Asian manufacturers, manufacturers of PCB in Europe can guarantee this security. 

Manufacturers of PCB in Europe therefore offer:

• Control and stability of the supply chain
• Rapid response to customer requirements
• Sustainable production
• Security of production data

The rise of Manufacturing PCB in Europe

To achieve technological sovereignty, Europe has adopted the so-called “Chip Act”. This is undoubtedly a step in the right direction, but it is not enough. To ensure technological sovereignty, Europe must take measures to reduce its dependence on Asia in other areas of electronics. Pruductions of PCB in Europe are a case in point.

The seriousness of the situation is recognised by key figures in the European electronics industry. In their appeal, they are asking the European Union to take concrete steps to address the issue of printed circuit boards. This call consists of a plea for a dedicated strategy for the PCB industry in the current mandate of the European Commission (2024-2029). The specific recommendation of the key figures consists of the adoption of the Electronics Manufacturing Act (SEMA, in EU ESMA) to ensure:

• Supply chain protection
• Regulatory and tax reforms
• Investing in the provision of a skilled workforce
• Expansion and modernization of existing European PCB manufacturing facilities

Conclusion PCB in Europe

The article shows that changes in the global PCB market may bring interesting opportunities for manufacturers of PCB in Europe. In turn, European manufacturers can provide customers with a more stable supply chain and a higher level of security. The geopolitical situation, the experience of the pandemic and the increasing pressure on sustainability and security of production data are driving European companies to change. The call from key figures in the electronics industry to the EU is very interesting: it calls for a dedicated strategy and legislative support for the production of printed circuit boards. This will help Europe to protect its strategic interests even better.

Do you need to produce a prototype circuit board? Gatema is manufacturer  of PCB in Europe.  Gatema is manufacturer of prototype PCBs with AS9100D certification to ensure the highest quality. Contact our sales department for a specific quote.

Today, Gatema PCB is a key entity of the Gatema Group, manufacturing PCBs for around 800 companies in fifteen European countries – including the largest distributors in the industry. Gatema is Czech manufacturer of PCB in Europe. We are accelerating and improving the production of prototype PCBs year after year. By investing in new production machines, improving processes and developing a production information system, which we are involved in the development of. For years we have also maintained a three-shift 24/5 operation.

Are you looking for an experienced, high quality and really fast PCB or PCB prototype manufacturer? The answer is Gatema PCB. A company with almost three decades of experience that sends PCBs from the Czech Republic to the whole of Europe.

More information about this topic

European PCB Industry at Risk

Printed circuit boards are fundamental components of electronic systems, providing electrical connections and physical structure. In 2023, the global PCB market was estimated at $87 billion USD, with over 90% of production originating from Asia.

Since 2000, production of PCB in Europe has been steadily declining—from 16% of global production to just 2.3% in 2022. The number of European PCB manufacturers has decreased from 555 to approximately 180.

The decline in European PCB production has had a domino effect on the supply chain of basic materials. The number of basic material manufacturers has dropped from over 20 to just two. This reduction in production has left Europe reliant on Asia for critical raw materials.

The European Institute of PCB Communities (EIPC) emphasizes that the European PCB industry faces high energy costs, placing it at a disadvantage compared to Asian and North American competitors. Without a change in this trend, the number of European PCB manufacturers is expected to continue to decline.

Production of PCB in Europe primarily serves industrial electronics (45%), the automotive industry (15%), and medical electronics. The aerospace and defense sectors constitute approximately 12% of production PCB in Europe. EIPC warns that ongoing production declines could jeopardize Europe's strategic independence and increase dependence on imported PCBs.

Europe has become increasingly dependent on PCB imports from Asia, with 65% of imported PCBs now coming from China. Failure to reverse this trend could lead to further production declines and increased reliance on imported PCBs.....

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