Progress for glass-core substrates and RDL interposers highlighted ECTC’s 75th anniversary conference.
More than 2,500 attendees braved the stormy Texas weather to discuss the latest developments in packaging and assembly at the IEEE Electronics Components and Technology Conference (ECTC) in May. Among the many presentations were a number focused on high-performance packaging, with clear momentum for expanded use of molded redistribution layer (RDL) packages, wafer-level packaging and updates on the states of glass core substrates. IBM announced its license of Deca’s RDL technology and outlined production plans for North America. Many presentations described progress in hybrid bonding and co-packaged optics, while others highlighted thermal challenges and metrology needs.
But can they handle tomorrow’s latency-critical applications?
From the first mobile phones and the Internet to smartphones and the mobile Internet, technical innovation has quickly expanded opportunities for people to communicate. This expansion has driven a relentless and rapid rise in the volume of traffic traveling across the networks that connect us. While the human will to communicate is at the heart of the tremendous success of these tools, the quest to satisfy this apparently insatiable desire places great importance on effectively maximizing network performance and utilization.
A Lean solution for high-mix production environments.
In any manufacturing process, first article inspection (FAI) plays a crucial role in validating initial assumptions about product design, manufacturability, materials, process design, machine programming and process control. This validation ensures consistency before the production of the product in volume. In the electronics manufacturing services (EMS) world, this process is often more complex because of the number of parties involved.
Proof that the real short circuits happen in customer communication.
People are funny. The older I get, the greater the source of amusement they become. No sense letting silliness make one angry in older age. Be entertained: laugh, forgive, move on and enjoy the ride. Savor the irony life and one’s chosen profession present.
An in-person visit reveals unrealized potential.
It’s been almost two years since the authors’ first visit to Thailand, which occurred just after Covid travel restrictions were lifted. We first reported on our impressions of Thailand’s PCB manufacturing environment in August 2023.
On our first visit, ground was just being broken on several large facilities funded mostly by Chinese parent companies. These new plants are located a few hours outside Bangkok in large industrial parks with wide roads and plenty of land between neighboring factories.
On what was cleared land just two years ago, newly constructed modern facilities now stand, with room for an additional building or two. These new factories have large floor plans for each of the major processes involved in making a printed circuit board.
Some of these factories are designed with environmental sustainability in mind by collecting the abundant rainwater that seasonally falls on the facility roofs for eventual use in the PCB manufacturing process.
The equipment in these facilities is the latest and greatest. The plating lines are long, brand-spanking new and do not have the usual obnoxious odors wafting about. Back in the day, the plating lines (also known as “wet process”) often were accompanied by wet floors. But these new Thai facilities are dry and immaculate.
Autonomous guided vehicles (AGVs) are readily available to take manufacturing panels from one department to another (Figure 1). These AGVs even have their own special mini elevator system to take them from floor to floor.
Figure 1. AGVs are commonplace at new Thailand PCB factories.
Many facilities have all this great equipment, but do not possess enough of it. They are in the first phase of gradually increasing production volumes, expected for now to produce about 40,000-50,000 sq. m per month, using about 300 employees each.
Rooms set up to house eight laser drill machines have only two installed. A room that holds a plating line, be it for the inner- or outer layer process, has capacity for two more. Each department – automatic optical inspection, drilling, routing, press – has plenty of space for more equipment to add as demand increases.
Yes, they are operational and actively building quality product, but they are not at capacity, even with the limited amount of equipment installed. Many of the AGVs were standing idle when we visited because of the lack of work on hand.
While Thailand has been mostly known for low-mix, low-to-medium technology PCB manufacture, these new facilities are gearing up to take on higher-mix and higher-technology boards that are more conducive for sales to the US market.
With over 20 large PCB facilities currently manufacturing or about to begin operations in Thailand, machine operators, engineers and chemists – who are experienced in PCB manufacture – are in high demand.
High demand means short supply, and many of the established domestic factories have had technicians and engineers hired away by other manufacturing newcomers. And the available personnel have little or no proof of actual IPC training or certification.
It was interesting to note during our visit that English was the common language spoken between Chinese management and the local Thai workers. Language is still the greatest barrier, meaning it will take more time for a factory to become a cohesive operation. Some in management at these facilities estimate that could be as much as a year.
While Thai labor is much cheaper than that of China, the cost for electricity is 25% greater. Many of the chemicals and laminates required for board manufacture still come from China, which adds to the cost.
While Thailand does manufacture raw materials, it is not enough to support the burgeoning industry. A major Chinese laminate supplier intends to open a new facility by year’s end to hopefully ease the burden.
All that said, pricing for PCBs manufactured in Thailand is 15-20% higher than in China.
For now, the 25% US-imposed Section 301 tariffs for all PCBs manufactured in China do not apply to PCBs manufactured in Thailand. That is good news for US buyers, but the average time to receive a quote and for an order to ship is much longer, averaging six to eight weeks.
In comparison, China will quote a PCB in a day and will ship most product in three to four weeks or less.
And don’t forget, a 10% reciprocal tariff exists between the US and Thailand. As of the time of this writing, higher tariffs imposed on Chinese goods are on hold, and it’s unclear whether they will continue.
In our estimation, a total cost of ownership difference of only 10-15% will give pause to many buyers wanting to move work from a known supplier in China, where they likely have buying leverage, to an up-and-coming factory in Thailand.
The next 12-18 months will determine how successful Thailand will become as a PCB manufacturing player. It is not from the lack of investment, as there seems to be no shortage of monies pouring in. Instead, the politics, tariffs, struggles with labor and shoring up of the internal supply chain will determine the outcome.
directpcb.com) and can be reached at greg@directpcb.com.
and are cofounders of DirectPCB (2025 is going to have a lot of surprises.
The political winds of change present challenges and opportunities for electronics manufacturing services (EMS) companies this year. This shift creates many challenges for EMS program managers. My April column discussed how to address customer tariff concerns. Here I will focus on the dynamics of market uncertainty.
IPC's April market trend data provide valuable insight into changing dynamics in the manufacturing sector. According to the US Federal Reserve, domestic factory output was up 0.7% year-on-year in February, predominantly driven by an 8.5% surge in motor vehicle production. US output showed renewed weakness in April, however, with the Purchasing Manager’s Index (PMI) declining to 48.7 from a year to date high of 50.9 in January. IPC’s EMS book-to-bill ratio data show shipments rose 0.2% in March compared to the previous year, while bookings climbed 12.7%. April orders pushed the EMS book-to-bill ratio to 1.37, its highest level since November 2022.
So, what do these contradictory data mean for program managers? The short answer is that customers are reacting to market uncertainty. Tariff concerns have incentivized material pull-ins to get ahead of tariff cut-ins. Since tariff rates have become a matter of negotiation rather than fixed policy decisions, this situation adds another layer of uncertainty to the market, complicating the program management role. Nevertheless, one rule of program management never changes: you can’t control what happens, but you can control how you respond.
First, let’s look at the impact of uncertainty on customer orders. Tariffs drive the need to understand price elasticity of demand. Some products are inelastic, meaning that the product is so necessary that consumers will continue to buy it at similar levels regardless of price increases or decreases. Other products are elastic, meaning that demand decreases or increases when prices rise or fall. Consequently, program managers should review their programs to determine under which category the products are likely to fall. Programs with inelastic demand such as defense, industrial infrastructure and medical products will likely perform to forecast. Natural disasters such as those experienced last year and this spring may drive ordering spikes in some industrial infrastructure. Comparatively, programs involving products consumers buy with discretionary income are likely to be pushed out, because these products are elastic and demand will drop as prices increase. Material availability may also fluctuate. There is already a spike in demand for components from countries with the lowest tariff rates. Reduced demand for products bought with discretionary income may partially offset this.
Do your homework. Program managers should work with their purchasing teams to better understand changing availability trends and options, particularly for programs with inelastic demand because these steady runners are going to be critical to achieving near-forecasted revenue levels. When dealing with programs that involve products with likely elastic demand, review the material related to orders, on-hand inventory, forecasts and contract terms. Discuss market conditions with customers and determine if there is demand softness that could lead to changes in agreed-upon forecasts. If a customer needs to push out the schedule, have an internal discussion on any contractual customer obligations (such as buying excess or inactive inventory) and decide if negotiation is necessary.
On the opportunities side, OEMs are going to be shopping to price out supply chain realignment scenarios. But much of this activity is likely to be “what if” scenarios rather than a sincere effort to select new suppliers until tariff policies stabilize and become predictable. Southeast Asia and Mexico will likely emerge as winners in this realignment, and if India opens its markets, it may also benefit. US manufacturing is set to see a reshoring of projects that never suited offshore settings. If tax policy changes to further benefit Made in USA manufacturing, this opportunity could expand.
Sales teams should do their homework on potential customers to determine how serious these prospects are on changing supplier location versus simply developing a pricing model. This diligence will help avoid wasting resources on quoting exercises or prioritizing quotes that cannot win over those that can. That said, increased shopping translates to increased opportunities to get on the radar screen of companies that may be serious prospects longer term. If there is a potential fit, it’s worth building a relationship and staying in touch even if the initial interaction is a pricing exercise.
In short, 2025 is going to have a lot of surprises. Program management and sales teams who carefully watch trends and strategize the best responses are going to have better outcomes than teams who simply react as their customers react.
powell-muchaconsulting.com), a consulting firm providing strategic planning, training and market positioning support to EMS companies and author of Find It. Book It. Grow It. A Robust Process for Account Acquisition in Electronics Manufacturing Services. She can be reached at smucha@powell-muchaconsulting.com.
is president of Powell-Mucha Consulting Inc. (