While the industry is still grappling (albeit slowly recovering) from some of the pandemic-induced runs and shortages of critical electronic components, 2025 presents a new challenge regarding geopolitical supplies of manufacturing materials. While supply chain problems are evident in most industries, they are especially noticeable in electronics production. Here, we’ll outline some of the causes of these problems and how designers and manufacturers can best navigate the PCB supply chain.
Electronic Component Supply Chain Management
After two years, the conditions that ignited the semiconductor supply chain firestorm have been explored in great detail, so let’s review some of those key points:
- The pandemic caused semiconductor manufacturing to shift from previous high-volume markets, such as the automotive industry, toward home electronics and other growing markets.
- The automotive industry rebounded sooner and in greater numbers than expected while the home electronics market grew.
- The chip industry couldn’t rapidly switch production between different component types and technologies to meet market requirements.
- The pandemic affected semiconductor manufacturers, causing material and labor shortages.
Chipmakers worldwide have responded to the demands for increased semiconductor production by increasing production and building new foundries. However, the semiconductor industry still needs to produce new specialized parts for IoT and other burgeoning technologies while increasing production on legacy components. It takes time and money to switch chip production lines from one part to another and bring new semiconductor production facilities online. To combat these problems, design engineers need to stay ahead of the shortages by following some basic steps:
- Check the parts you use for price and availability before committing to them.
- Work with a knowledgeable partner who understands the electronic component supply chain industry.
- Look for design options to avoid unavailable parts. You can design for multiple parts on a footprint if your primary part is unavailable.
- Prepare for long lead times and higher prices.
Your circuit board manufacturer can help you validate your bill of materials while you are still in the design phase. It is essential to give them plenty of time to review your design and suggest alternate strategies. The relationships with an assembler also take us to the next part of this discussion, the manufacturing portion of PCB supply chain management.
Electronics Manufacturing Supply Chain Management
Component availability is a challenge in the supply chain and manufacturing of printed circuit boards. This problem originates from several conditions, including component shortages and shipping problems. To avoid getting caught by these problems, here are some manufacturing considerations when looking for a vendor to build your products.
Don’t Constrain Manufacturing to a Single Vendor
Relying on a single source for manufacturing can prolong production if the assembly shop has problems. Working with a single source will also constrain you to one price and schedule, and you won’t be able to change vendors if needed without affecting production quickly.
Use Well-Networked Manufacturers
Your manufacturing partner should have multiple PCB fabrication vendors with whom they can work to make the best choice for the technology needs of your project. They should also employ a component engineering and procurement team with access to a vast network of part manufacturers, distributors, and brokers. Lastly, your manufacturer can help you with the prototype development of your design and prepare it for long-term production by other vendors.
Choose a Local PCB Manufacturer
There are many benefits that a local onshore electronics manufacturer can offer to their customers:
- Real-time service instead of international time differentials.
- Avoid delays due to national holiday shutdowns, civil unrest, or pandemic issues.
- Eliminating shipping congestion, tariffs, and the cost of international shipping.
- Reduce your exposure to unscrupulous manufacturers and counterfeit parts.
- A local manufacturing partner will know you, your business, and the needs of your product better, giving you the best chance for success.
The Three Gs and What They Mean for Electronics Manufacturing
China, the world’s leading exporter of critical electrical component inputs, continues restricting supply to some of its key reserves. While antimony and rare-earth metals joined the list this year, the three Gs – graphite, gallium, and germanium – whose restriction is most likely to be felt industry-wide. While these restrictions were announced in late 2023, the impact has yet to develop as manufacturers work through extant supply. However, 2025 and beyond could indicate a sea change for many common electrical components as general demand continues to climb.
| The Three Gs: What They Mean For Electronic Manufacturing | |||
|---|---|---|---|
| Graphite | Gallium | Germanium | |
| Found in | Lithium-ion batteries, semiconductor design, solar, insulation/heating, dry lubricant | Gallium-nitride semiconductor chips, magnets, solar voltaics, LCD/OLED displays | Infrared optics, semiconductors, high-speed transistors, processors |
| Global % supplied by China | 90 | 90 | 60 |
Key Takeaways for Deftly Navigating the PCB Supply Chain
We’ve looked at the causes and results of PCB supply chain shortages and what that means to you in the design and manufacturing of electronics. We’ve also discussed some effective summaries; here are four PCB supply chain best practices to focus on avoiding the problems associated with these supply chain challenges. To
- Supply chain difficulties are still a problem, so be prepared for them.
- Design your electronics to avoid falling victim to unavailable or costly parts.
- Seek the help of a knowledgeable manufacturer and engage early with them.
- Work with local onshore PCB manufacturers to achieve the best results.
Working through the various supply chain crunches now and in the future can be challenging, but VSE is here to help. Our engineers are committed to building electronics for our customers, including a thorough design review to catch potential BOM issues before entering production. We’ve been realizing life-saving and life-changing electronics with our manufacturing partners for over forty years.
