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  • The cost burden of circuit boards has reached its limit

    2023-10-13

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      After several waves of upward momentum, PCB factories have already reached their limits in terms of affordability. It is understood that in the past six months, the average price of CCL materials has increased by about 20-30%. Therefore, most PCB manufacturers, especially traditional hard board manufacturers, can no longer withstand the pressure and have started price negotiations with customers, hoping that customers can understand the pressure from PCB factories and help absorb some costs. The end customers, ODM and OEM factories that are in contact with PCB factories have seen a real shortage of materials, and the pressure to rush out far outweighs the cost pressure. Recently, their attitudes have indeed softened. It is widely believed that although the magnitude of the price increase cannot be determined, the cost transfer negotiations among PCB factories are expected to achieve certain results. Even if the price increase is only 5-10%, it can be considered as a small supplement.

      In fact, in the past six months, PCB factories have indeed been in an awkward state of sandwich biscuits. Faced with upstream CCL factories' demand for price increases, if they do not accept it, they may not be able to obtain enough materials to cope with the continuous supply of orders, and the CCL end has become a complete buyer's market; In the face of downstream assembly manufacturers and end customers, PCB factories have relatively limited bargaining power, especially some customers who have always been very tough on prices. PCB factories can only find ways to solve the problem of eroded profit margins on their own. The PCB factory pointed out that although the proportion of PCBs in the cost structure of various final products is not high, only when there is a shortage of supply in related products, such as carrier boards, or when customers require product yield and reliability far higher than cost, will customers reduce their emphasis on cost. However, with the current hot terminal market and a shortage of various components, Perhaps it is the key factor that customers are more willing to accept an increase in order prices at this stage. From the current situation of comprehensive surge in upstream raw materials, it can be said that it is not only the PCB industry that is affected, but also all electronic component supply chains are beginning to feel pressure. Price increases have evolved from a single event to a systemic event. In order to maintain long-term cooperation and stable product quality, end customers usually choose to accept cost transfer to avoid other unknown risks.

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