Takeaways from the Keynotes at the Edinburgh EIPC Summer Conference

Estimated reading time: 10 minutes

Recent investments in PCB manufacturing in Thailand have been driven primarily by geopolitical tensions. These could potentially double or triple PCB production output in Thailand within the next five years and help Thailand become one of the top-three PCB manufacturing locations in the next three years. A clustering effect is emerging in Thailand, with leading PCB manufacturers increasingly committed, and many leading Western electronics OEMs favoring the establishment of new PCB production sites to diversify risk.

Primett believes there is a demand for a new “out-of-China” PCB manufacturing hub, and that Thailand might be the optimal choice. Realistically, he also believes that recent investment alone does not guarantee long-term sustainability or future growth. Without adequate returns on investment or sustained competitiveness, leading PCB companies might slow future investments or seek alternative sites and opportunities elsewhere.

Some critical success factors in the development of the PCB industry will be government support in taxation, water, electricity and land supply, enlarging and developing talent pools by collaboration with local vocational schools, universities, and research centers, working with global leading manufacturing tool and material suppliers, and enhanced exchange programs with development organizations in other countries.

Because the PCB industry is capital intensive, it will need access to local financial institutions, equity markets, and local entrepreneur participation. To support expansion and growth, it will need access to upstream and downstream industries such as PCBA, module, and box assembly, as well as electronics materials and manufacturing equipment.

THPCA was established in 2019 and admitted as a member of WECC in 2020. Primett reviewed some of its milestones and described the association’s team and its vision and mission. Its activities and achievements include business development, government liaison, cluster and SME development, market and industrial surveys, and the establishment of the Thailand Electronics Circuit Center, whose work includes education and training, local supply chain development, and a PCB prototype factory.

The association is organizing its Thailand Electronics Circuit Asia exhibition in Bangkok in August and will host the ECWC conference in 2027To complete the keynote session, Rapala-Virtanen introduced Otto Pukk, president and CEO of Incap in Estonia, and his colleague Jamie Maughan, MD of Incap in the U.K. They gave a joint presentation titled, “Aligning Technological Evolution With Market Needs and Sustainability Objectives,” describing the characteristics of their EMS company, which specializes in manufacturing electronics, electromechanical products, and final assemblies from prototypes to global mass production in their factories in Estonia, India, Slovakia, the U.K. and the U.S.

They explained the cost-effective principle of a decentralized business model and its advantages. Without a classic headquarters, the focus is on the customer, who always meets the decision-maker. Business decisions are made in every factory on the spot, and responsibility is taken by the employee.

Incap’s strategy focuses on three strategic cornerstones: growth, profitability, and operational excellence. Their growth is based on the increasing use of electronics, the outsourcing trend, and its focus on Europe, North America, and Asia–Asia-Pacific, together with a broadening of their service offering, plus targeted mergers and acquisitions.

Its profitability is based on maintaining a unique and efficient business model with strong cost awareness and an entrepreneurial culture, enabling value creation and a broader service offering, together with the synergies and economies of scale from its mergers-and-acquisitions activities.

Their operational excellence is a result of their investments in high-quality technology and the know-how of its personnel. Their decentralized organization motivates personnel and brings value to its customers. An additional factor is the successful integration of acquired businesses.

Maughan described Incap’s corporate sustainability program, “ESG at Incap,” which began in 2020 and is based on environmental and social responsibility and governance. They take a holistic approach, which includes innovation, sustainable, profitable technology, and business development, with a “victim vs. winner” mentality. “It’s not simply about making money from the business you do, but how you make it. We want to do it sustainably.” Pukk commented. “But it’s tough!”

Outlining Incap’s value creation model, they discussed at length the importance of understanding market needs and demands, and see technological evolution as a key input.

Rapala-Virtanen closed the session moderating a lively Q&A.

I gratefully acknowledge Alun Morgan’s generosity in sharing his excellent photographs.

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