PCB assembly suppliers shift focus to emerging hot applications

Drones, robotics, smart home, wearables and medical devices have been attracting more attention in China's PCB assembly sector recent years.

Growing prospects in new markets such as drones, robotics, and smart home, wearable and medical devices have effected a change in the China PCB assembly industry. Companies have been gradually transferring R&D and production priorities from mobile electronics, communication products and home appliances. This is because demand in the flourishing categories has been increasing by more than 10 percent in recent years.

Makers are strengthening capability to meet the more exacting requirements in the target applications in terms of product precision, density and power consumption. This is also to leverage effectively China’s advantages of low cost and a comprehensive industry chain compared with other manufacturing hubs in Asia.

The acquisition of advanced SMT machines and test devices will continue to ensure facilities are upgraded to handle 0201 and 01005 component placement. Tecoo Electronics Co. Ltd has invested $95,000 to import surface-mounting equipment and will purchase more production and testing machines until next year. Wells Electronic Technology Ltd’s expertise covers up to 01005 chips and 0.3mm minimum IC pitch.

Furthermore, local suppliers emphasize shorter turnover times and better services, having adopted manufacturing execution systems or MES. Such computerized management of resources on the factory floor ensures speedy response to orders, optimized production processes and dynamic control over quality.

China is the largest manufacturing base for PCB assemblies, accounting for over half of total shipments worldwide. It has been enjoying a steady increase in sales, with the majority of domestic enterprises posting annual growth between 5 and 10 percent in the past several years. This trend will persist, thanks to opportunities in new applications.

All companies export their products, with shares ranging from 30 to 80 percent of output. The key destinations include Europe, the US and Asia. Shipments are projected to keep rising by 5 to 10 percent through 2019.

Tecoo allocates 95 percent of PCB assemblies made for the overseas market. Deliveries abroad have been rising 5 to 10 percent, and the same rate is forecast for 2019. The maker anticipates business in the Middle East and South America will climb past 10 percent. Overall, its revenue has been climbing by 5 percent YoY.

There are more than 1,000 companies in China’s PCB assembly sector. Over two-thirds are locally owned operations and all accommodate small orders.

To be near their customers and providers of materials and components, most suppliers are based in the electronics hubs in the coastal provinces of Guangdong, Fujian, Jiangsu and Zhejiang. They congregate mainly in the cities of Shenzhen, Dongguan and Zhongshan in the first, and Xiamen and Suzhou in Fujian.

The rising labor and input costs in these regions will drive some to relocate to the central provinces of Jiangxi and Hubei, and the Chongqing municipality.

Others may drop out of the line due to intense competition.

Typical output

PCB assemblies from China manufacturers can be based on single-, double-sided, multilayer, HDI, rigid-flex and flexible PCBs. The boards commonly used are the second, and 4, 6 and 8-layer kinds. Suppliers note rising requirement for those with rigid-flex, flexible and HDI units.

SMT is the key method adopted, while DIP remains an option. More than 60 percent of shipments are products integrating SMD components. This share will expand further as miniaturization in terminal applications continues.

Many domestic makers have in-house facilities for PCB manufacture, but for ICs, passive components, soldering wires, paste and adhesives, all turn to providers. The former includes interviewed suppliers Shenzhen Vansoon Electronics Co. Ltd and Wells.

ICs come mostly from foreign companies, including Fairchild, Microelectronics and TI. Passives such as multilayer ceramic capacitors or MLCCs are sourced locally or overseas, depending on buyers’ requirement. The other inputs are usually purchased in China.

The cost of passive components rose, prompting the majority of local PCB assembly suppliers to increase product prices by 10 percent in recent months. The trend is expected to persist until 1H2019, especially as the largest MLCC maker Murata announced higher quotes for 0603 and 0805 units.

The products in this gallery have been handpicked by our China-based market analyst for representing current trends in PCB assemblies from China makers.

PCB assembly adopts SMT

DNC Precision Co. Ltd’s DNC-2313 model PCB assembly suits networking, communication and industrial control equipment. The unit is based on a PCB with up to 22 layers. SMT is used to place components at 0.4mm pitch distance. ICs are subjected to function testing.

The order quantity is negotiable and delivered within 7 days.

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PCB assembly has 4-layer FR-4 board

The model VS313 PCB assembly from Shenzhen Vansoon Electronics Co. Ltd uses a 4-layer white PCB with HASL surface finish, 3mil minimum line width and spacing, 0.5 to 5oz finished copper and holes as small as 0.1mm. The holes are plated-through with copper as thin as 25µm.

The unit has a negotiable minimum order. Delivery lead time is 7 days.

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PCB assembly uses board with up to 22 layers

Tecoo Electronics Co. Ltd offers this model PCBA-M, which adopts a 1 to 22-layer PCB, and integrates 0.5mm-minimum-pitch BGAs and 0.4mm-minimum-pitch ICs. The unit is made using fully automatic equipment.

An order of 100 units is delivered within 7 days.

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PCB assembly with 01005 components

This PCB assembly from Wells Electronic Technology Co. Ltd, Wells-3926 model, uses 01005 BGA components with 0.4 to 1mm ball diameter, 1 to 3mm ball pitch and 74x74mm maximum dimensions. For chips in QFP, the lead pitch is 0.38 to 2.54mm. Chips in SO, SOP, SOJ, TSOP, TSSOP or U-BGA can also be mounted. The minimum IC pitch is 0.3mm.

The PCB has 0.35mm minimum thickness and 410x600mm maximum board size.

The negotiable minimum order has a 7-day delivery lead time.

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