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From Chips to Systems: Building a Resilient Electronics Manufacturing Base in the EU
July 22, 2024 | Shawn DuBravac, IPCEstimated reading time: 1 minute
Electronics are ubiquitous, underpinning everything from personal devices and electric vehicles to wind turbines and industrial systems. 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 innovation, the role of electronics manufacturers as key facilitators of Europe’s digital and environmental transitions increases significantly.
The EU’s Chips Act signifies a strategic commitment to bolstering a key segment of the electronics sector. While semiconductors are crucial, that narrow focus neglects the other essential parts of the broader electronics ecosystem, such as printed circuit board (PCB) fabrication, electronic manufacturing services, and semiconductor packaging. Enhancing these industry segments is vital for developing a robust European electronics manufacturing ecosystem that supports industrial resilience, advances the dual green and digital transitions, and fosters European 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 backdrop 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 eight strategic sectors is projected to increase from 82.5% in 2023 to 88.9% by 2035 unless decisive strategic responses are implemented.
To read the rest of this article, which appeared in the Summer 2024 issue of IPC Community, click here.
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