PCB Finance Class With Jeff De Serrano
July 28, 2022 | Nolan Johnson, I-Connect007Estimated reading time: 2 minutes
Class is in session! PCB Technologies President Jeff De Serrano takes us through some of the struggles of the PCB industry over the past 30 years, how U.S. legislation seeks to level the playing field, and whether a “monopoly” of fabricators is healthy for our industry. In his chat with Nolan Johnson, Jeff gets out his investment playbook and talks strategy. Don’t miss this one.
Nolan Johnson: Jeff, you have an interest in getting involved with advocacy groups. What’s your motivation? As a fabricator, what value do you see in them?
Jeff De Serrano: We hope people understand that we’re not just a commodity in the United States. When PCB production went over to China, it became a commodity. When I started in this business, it was a unique industry. We built some of the craziest stuff to make the world go around; being an engineer, an EE, I thought it was great.
Then it switched to a commodity. After 2008, finance took over most of the purchasing activities for OEMs, and they’d say, “We’re not paying for that. You can buy it over there and it’s cheaper.”
In the United States, we all suffered for a while. With these advocacy groups, I’m hoping everyone will realize and understand that it’s not a green thing and it’s not a commodity. When you’re 4,000 units a year or 10,000 units a year, it’s not a commodity. When you’re buying a million a month, that’s a commodity. We don’t make bread; we make customized specialty items for military warheads, the communications network infrastructure, 5G, and other strategic applications.
The U.S. manufacturing industry is up against a challenge: To make money, you need to be in the advanced technology market, and the equipment investment is very expensive. It’s not just a commodity anymore. That’s the main thing for me.
Johnson: You’re an industry insider, but right now, you’re also an advocacy group outsider. What’s your assessment of how they’ve performed over the past couple of years? I’m thinking of PCBAA, USPAE, and IPC. Each has a slightly different focus and mission statement.
De Serrano: I have not joined the PCBAA. They’re tightly focused on the DoD market. They’re making headway, but anything in the government takes a very long time. We’re only “this big” in a pot that’s much bigger, but I do think they are making progress.
At least it’s a path forward and we can speak to the DoD folks. They understand that in the truest sense in America, their supply chain is almost gone. You’ve got major players acquiring everybody and all these other mom-and-pop shops that can’t keep up with the cost to invest in the latest technology.
Johnson: We’ve got the CHIPS Act, as well as the Supporting American Printed Circuit Board Act of 2022, which is basically the PCB fabrication and assembly equivalent of the CHIPS Act. Both bills are on the Hill right now, going through the process to become law. This seems like a major accomplishment. How do you view that legislation as far as helping the industry?
De Serrano: I know about the CHIPS Act and it is awesome. If you look at the scope of things, in the 1990s we made most of our semiconductors here; overseas was 10% or 12%. Now it’s maybe 8% here and Taiwan is making 85%.
To read this entire conversation, which appeared in the July 2022 issue of PCB007 Magazine, click here.
Suggested Items
The IPC Hall of Fame and Its Namesake
10/23/2024 | Dan Feinberg, I-Connect007IPC has been advancing our industry since the organization was founded more than 60 years ago, but it could not have been done without the volunteer efforts of so many members. Each year, some of those members are recognized for their significant contributions through awards such as the Rising Star Award, the Dieter Bergman Fellowship Award, the President's Award, and the Corporate Recognition Award.
Global Citizenship: Comparing and Contrasting the U.S. and China PCB Industries
10/23/2024 | Tom Yang -- Column: Global CitizenshipI have spent a lot of time in the U.S., and one question I am frequently asked is about the differences between the Chinese and U.S. PCB industries. It’s always an interesting question, and I will try to answer it in this month’s column. Certainly, the U.S. was the leader in PCB manufacturing, including developing the processes and technology, which it taught to the Chinese in the late 1980s and ’90s. As a result, China has become a force to be reckoned with in the global PCB market. Having been educated in America and now leading a major PCB manufacturing company in China, I have a unique vantage point when it comes to comparing the two nations’ approaches to PCB production.
Material Insight: David Griesel: Career Success Requires Tenacity, Flexibility
10/23/2024 | Dr. Preeya Kuray -- Column: Material InsightDavid Griesel, CEO of Sunrise Group, has been in the PCB industry for nearly 50 years. “I didn’t even have a desk when I started,” says David, who, as a fresh college graduate, got his start at Norplex, a company in Wisconsin that made plastic. “At that time, I had no idea what plastic was even about.” But it gave him an opportunity to learn the business from the ground up. He worked in customer service, followed by technical sales and marketing through several iterations of the company, including as Isola. I hope you’ll enjoy this interview with David as much as I did.
SEMICON Japan 2024 to Expand Scope with Spotlight on Advanced Design Innovation
10/23/2024 | SEMISEMICON Japan 2024, the largest gathering of leaders from the microelectronics manufacturing supply chain in Japan, will assemble more than 1,000 exhibitors showcasing semiconductor solutions for smart technologies from Dec. 11-13 at Tokyo Big Sight.
Automotive Electronics Control Management Market Size Expected to Reach $48B by 2031
10/23/2024 | Globe NewswireThe automotive electronics control management market was estimated at US$ 29.2 billion in 2022. A CAGR of 5.7% is expected from 2023 to 2031, and the market is expected to reach US$ 48.0 billion by 2031.