China's PCB Assembly Service Solutions
China’s economic reform has been going on for 40 years. With the strong support of the government sector in the integrated IC industry, China’s PCBA industry has maintained a good development trend, However, due to the following circumstances, China's PCBA industry has received unprecedented challenges:
1. Many developing countries are vigorously developing their economies. Their government departments have attracted a lot of investment in the world to their local area to open the factory via lower labor cost. For example, India, Vietnam and Malaysia, etc. This move is very effective because capital is always chasing higher profits. At the same time, the government departments of these countries have gradually increased the import custom tax on the products what import from China for protecting and developing their own manufacturing industries.
2. The number of core chip technologies: China's self-developed chip brands are very few, and there are almost no big brands that can play an influential role in the world in IC industrial. Therefore, China's PCBA products have no right to speak and decide internationally. The price rises and falls depends on the country's relevant IC brands. For example, the capacitor and resistor were increased the price crazy in 2018.
3. Finally, the complicated international political situation has also affected the development of China's PCBA. In 2018, US President Trump launched a trade war against China, which is a very big constraint on China's PCBA development.
Where is the development of China's PCBA?
1. Use good experience & integrate resources
40 years of reform and opening up quality control experience, perfect supply chain, fast production delivery.. It is difficult for other country to surpass in a short period of time. Meanwhile, due to raw material PCB and components were increased cost deeply in 2018, some PCBA factories that are not good enough will be eliminated. The well-developed PCBA factory will continue to develop and resources will be continuously integrated.
The PCB assembly board is the most important part of the electronic equipment, and its stable quality is crucial for the normal functioning of the terminal electronic equipment. Therefore, the suppliers of large-scale brands are very strict with suppliers, and in addition to meeting industry standards, they must pass strict supplier qualifications. International large-scale enterprises have at least one year's qualifications for suppliers. In the process of certification, they will impose strict requirements on suppliers' production processes, quality management, work environment and even business conditions.
Generally, they need to be improved several times before they can pass. Qualification identification, and then confirm the stability after a small period of supply testing for a certain period of time to formally become its supplier. In addition, the development of electronic products in the direction of short, small, thin and light, the technical requirements for PCBA processing are more demanding, and it also increases their difficulty in entering large enterprise suppliers. That 40 years of experience in China's PCBA is an invaluable advantage.
2. Upgrade Service
The PCBA business not only needs to invest in more expensive SMT equipment and testing equipment, but also requires large liquidity investment to improve the material procurement system. At the same time, PCBA service targets are mainly multinational companies, and multinational companies tend to have larger business scales. This requires that PCBA enterprises, which are an important part of their global supply chain, must also upgrade their industrial based on more flexible & fast lead time and customized service, so that can reduce procurement costs and production costs. Meanwhile updating service, not only means software(software means rich experience working labor, competitive supply channel, high tech engineering team, good management…ect), but also need hardware(I am talking about intelligence production line). This increases the difficulty of entry for PCBA business. In addition, the PCBA industry has developed rapidly in recent years, and the unfair competition of its peers has made the industry's profits thinner and thinner, and will also reduce the number of people entering the PCBA industry. Therefore, the crisis facing China's PCBA is also our opportunity.
The above opinions are purely personal opinions. Please understand that there are any irregularities.
About Hengkaituo
HENGKATITUO PCBA business was started in 2004, which specializes in ONE STOP OEM & ODM PCB assembly full turnkey services. If you are ready to have your design manufactured, please send your files to email: sales1@pcb-dayee.com for quote. File formats:
Gerber file: CAM350 RS274X OR PCB file: Protel 99SE, P-CAD 2001 PCB
BOM: Excel (PDF,word,txt)
Or if you want more information on prototype circuit board assembly or design keys to aid your needs in the PCBA process, contact us.
Email: sales1@pcb-dayee.com
QQ: 1059092587
Wechat: janema6
Skype: dayeeservice
Website: https://www.pcb-dayee.com/
