Increasing costs in PCB industry

In recent months costs of raw- and auxiliary materials as well as charges for energy have risen in the PCB-industry.

These price increases are resulting in higher costs along the whole PCB supply chain, says recent reports by (Printed Circuit Board Association) and ZVEI (German Electrical and Electronic Manufacturers' Association) Division Electronic Components and Systems.

For the first quarter of 2006 the associations expect that these increases will be passed onto the sales prices of PCBs in Europe. The price increases within the supply chain are not to be compensated by further rationalisations of the manufacturers.

Chemicals, tools and base materials are needed for the production of printed circuit boards. During the last year the manufacturers of such materials, had to cope with significant and unexpected additional costs.

The price of crude oil rose by 41%, resulting in higher costs for chemicals and energy (electricity, heating etc.). The price increase of gold was about 20% (needed for surfaces), of aluminium 24%. Tungsten, used to make drilling tools, rose by almost 300% during the past twelve months. Also copper prices rose by 46%, so prices of copper-clad base materials had to be adjusted. This development took place all over the world. Eg, in Asia prices for base materials were increased by 10 to 20%.

Item provided courtesy of Global Electronics