The Laminate Market: What Will the Future Bring?

Raymond_Goh.jpgPCBs have been manufactured more or less the same way since we entered the industry in 1972, but the circumstances surrounding the boards have changed. The PCB Norsemen have addressed the copper situation several times in our columns as well as the component crisis affecting the PCB industry. Now, we’re experiencing external factors—such as Brexit and the trade restrictions between China and the U.S.—that are affecting the industry and causing delays due to raw material demand and prioritization by huge market players. The PCB market in China is experiencing a slower growth pace since the beginning of the year. Many factors have affected it, including the U.S.-China trade war and its increased tariff and the expectation of a big ramp-up from the automotive or electric vehicle (EV) industry, which did not happen this year.

Take a Step Back and Look at the Figures

We read and hear about factories moving out of China in view of the China and U.S. trade war.

There had been some increase in capacity in neighboring countries in South East Asia. However, in the next 3–5 years, China will probably continue to be the largest PCB manufacturing country, as the overall network of the supply chain for the PCB ecosystem had been built and improved over the last decades will not be gone overnight.

Let's move back one step and take a look at the PCB laminate supplies. There had been significant growth in the global laminate value between 2015 and 2016 from US$24.3 billion to $25.8 billion. However, from 2016–2018, the growth had been unsubstantial with $26.2 billion and $26.5 billion in 2017 and 2018. It has been estimated that 2019 will close at about $26.7 billion.

This year, we cannot ignore the impact of the change in strategy of major players toward the supply chain. The U.S. trade restrictions imposed on Huawei Technologies, one of the world’s leading networking and telecommunication manufacturers from China, have drastically affected Huawei’s access to U.S. technologies, which includes raw materials. The U.S. trade restriction and warning to its allied countries have forced Huawei’s products to face project bans, business contract restrictions, security scrutiny, and even pushback in some countries. Huawei continues to make changes to its strategy to continue doing business.

To read this column, which appeared in the October 2019 issue of PCB007 Magazine, click here.

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2019

The Laminate Market: What Will the Future Bring?

11-04-2019

PCBs have been manufactured more or less the same way since we entered the industry in 1972, but the circumstances surrounding the boards have changed. The PCB Norsemen have addressed the copper situation several times in our columns as well as the component crisis affecting the PCB industry. Now, we’re experiencing external factors—such as Brexit and the trade restrictions between China and the U.S.—that are affecting the industry and causing delays due to raw material demand and prioritization by huge market players.

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The PCB Norsemen: Avoid Failures in PCB Production With Compliance Control

08-08-2019

Failures and reliability in the printed circuit industry are usually considered in the context of quality claims and non-conformity. This is a logical approach; however, there is a new context where these aspects are under close scrutiny, namely compliance—especially in the defense industry. Failing to understand import and export compliance for every country you deliver to and from will, at some point, result in challenges in your supply chain with potentially severe ramifications.

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The PCB Norsemen: From Wooden Huts to Homemade Go-karts—It All Starts With Design!

07-08-2019

Whether building the coolest go-kart or the most sophisticated electronic hardware, the story is the same: It starts with design. And for designers and manufacturers, early involvement and commitment between all the involved parties in a product development process diminish the risk for mistakes and misunderstandings.

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What Is Reliability Without Traceability?

06-27-2019

High reliability and compliance are hot topics at conferences all over the world. If you are a supplier to industries like defense, automotive, medical, and aerospace/space, high-reliability and regulatory compliance are strict demands for electronic device manufacturers. This column discusses how high-reliability demands enforce the need for traceability, and at what level the traceability should be.

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The PCB Norsemen: Merging the Best of Both Worlds—Young Superheroes and Knowledgeable Wizards!

05-29-2019

Companies that dare be true to themselves, trust their employees, and provide direction, freedom, and responsibility to their most important asset—namely, their employees—are more likely to succeed. However, we can all rattle behind these positive words and agree with these statements. The real question is, “How do you actually create and sustain an environment that motivates and attracts people—especially millennials—in the wave of Industry 4.0?"

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The PCB Norsemen: My Flexible Story—Flex Circuit Development Through the Decades

04-30-2019

Senior Technical Advisor Jan Pedersen is celebrating 26 years at Elmatica. In this column, he shares his thoughts from his long experience in this exciting industry, and talks about those things that have changed a lot in the past few decades, and the others that haven't.

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A PCB Broker’s Guide Through the Galaxy of Automation

04-05-2019

A smart factory is defined by its ability to harness manufacturing data flowing throughout the enterprise and then convert that data into intelligent information that can be used to create improvements in productivity, efficiency, savings, yields, automation, enabled traceability, compliance, and reduced risk of errors and rework. All of these items are crucial factors when manufacturing printed circuits.

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The PCB Norsemen: Technology’s Future Comes Together—A Great Slogan for Us All!

02-13-2019

“Technology’s Future Comes Together” was the theme of this year's IPC APEX EXPO, which is quite suitable during these changing times. I guess we all need to come together, especially the automotive industry.

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The PCB Norsemen: PCB Standards for Medical Device Applications—A Hard Nut to Crack!

02-04-2019

With digitalization, AI, and IoT, the traceability and transparency to how a PCB is produced will be even more important. We must rule out the PCBs that follow the standards to the ones that do not. The day will come when you or someone you know might need a medical device, and you want to make sure it does its job correctly.

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2018

Digital Specs for Automated Manufacturing: Find the Missing Link!

11-29-2018

Automation and connected smart factories are the new manufacturing trend. Industry 4.0 and the Internet of things (IoT) continue to enter PCB manufacturing. However, if we continue down the same path with specifications and requirements written on electronic papers and unintelligent production files, human interpretation is still crucial to avoid mistakes. CircuitData could solve this problem because having one language for automated smart factories is the future!

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PCB Norsemen: The Solution to the UL Challenge—Industrial Awareness

08-28-2018

Writes Jan Pedersen: The solder-limit subject has been a "hot potato" for a quite some time, with many discussions around the new requirement from Underwriters Laboratories (UL) that UL’s Emma Hudson brought to attention in early 2018.

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The PCB Norsemen: Lean Challenges—Standard vs. Non-Standard Products

08-06-2018

Writes Didrick Bech: People tend to treat standard and non-standard products in the same way; however, they represent two parallel product segments and consequently different challenges for your Lean manufacturing process, especially in relation to production and logistical operations. When you fail to differentiate the processing of standard and non-standard products, not only is the Lean manufacturing process disrupted, but you also introduce a variety of production, financial and logistical challenges.

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The Velocity of Technology— What Does It Really Mean?

07-02-2018

PCB Norseman, Jan Pedersen: Driving a car is probably one of the areas where the user comes in direct touch with the technology development. And we understand the speed when we see how fast we get new versions of smartphones and other gadgets. But in what direction are we going?

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2017

Industry 4.0, AI and CircuitData

11-14-2017

PCB Norseman, Andreas Lydersen: As automation works its way onto the shop floors, it still struggles to replace humans in the supporting roles, such as designers, purchasers, brokers, and back-office staff. Where automation on the shop floor replaces humans in doing repetitive manual tasks, the supporting roles (at least some of them) require intelligence to understand and utilise information.

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