The technology industry in India recently moved up to fifth place in the world. Considering that they were ranked 11th a decade ago, this is an impressive feat. The highlighted strengths show that the situation is very optimistic regarding India’s potential to achieve the goal of US$5 trillion economies by 2026, to which electronics manufacturing will contribute $300 billion. Experts agree that the PCB market is crucial to the ESDM business around the world.
Some reports have indicated that the government has emphasized the importance of developing a sizable PCB ecosystem in the nation. To that end, in the next five years, the country will need to construct a number of state-of-the-art, massive PCB plants to produce enough ML (five million square meters) and Flex/Rigid-Flex (two million square meters) panels to satisfy demand. There is a need for seven mega PCB factories with one million square meters of factory space across the country right now. It calls for an investment of Rs 7,000 Crores and promises to generate Rs 10,500 Crores annually, in addition to creating 7,000 direct jobs and 35,000 indirect positions along the value chain. According to the experts, there are many benefits to establishing a specialized supply chain for the existing PCB units in India.
Professionals in the field praised India’s progress in manufacturing and the Make in India plan, citing the country’s ability to expand its PCB ecosystem. In 2021, the PCB industry is expected to reach 80 billion euros, up by about 24 percent from 2020 levels. The pent-up demand and the high cost of basic materials are two factors that have contributed to this rapid expansion. The price tag is quickly approaching $100 million. When compared to other PCBs, HDI PCBs have experienced unprecedented development, making them the fastest-growing market in the world. An anonymous expert has stated that further investment in SS and DS PCB units in the nation is not required.
In terms of both SS and DS PCB units, the country has a respectable demand of roughly 33.1 million Sq. Meters, which is expected to reach 41.1 million Sq. India is home to more than 150 PCB manufacturers with the ability to supply at least 30% of the country’s demand. (8-10 Million Sq. Meters). Unfortunately, they are unable to satisfy this demand and have only sold about 2–3 million square meters, while they have exported the rest in its entirety. In reality, they can’t compete with the cost of duty-free PCBs from China. China has become the biggest importer of low-end PCBs because they have turned them into commodity products. India has the potential to do well in fulfilling this demand, provided that significant efforts are made to reduce costs by virtue of the country’s large capacities and a supply chain ecosystem.
How Big is India’s PCB Market Relative to the World’s?
- Approximately 200+ PCB shops in India
- Approximate Domestic Production $350-$400 Billion
- 10-15% CAGR for The Indian Industry
- Global Market Size Approximately $80 Billion, India’s Share <0.5%
- China, South Korea, and Taiwan hold more than 70% Market Share
- Over 90% of India’s PCB Requirements Met Through Imports
- Over 50% of Total Domestic Production Exported
- 95% of PCBs Produced are S/S, D/S, 4L & 6L
As part of the World Trade Organization (WTO), India has signed ITA1, which exempts PCBAs and other products from import duties. As a result, PCBs can be freely imported from abroad, and manufacturers have little incentive to increase their spending on PCB equipment as a consequence. Because of this, the government has been actively promoting the PCB sector for the past few years. The M-SIPS incentive program has been superseded by the SPECS scheme, which is similar but does not include construction expenditures in its 25% Capex reimbursement. With the PLI plan, incentives are provided for additional sales after a predetermined amount of money has been invested. Supported by these programs, each state’s government has adopted its own set of electronic policies that offer various forms of financial assistance, including capital expenditure reimbursements, state and local sales tax refunds, loan rate reductions, etc. In addition, the government is attempting to construct a narrative for Make-in-India by actively convincing major buyers to boost localization content. There will be enormous prospects for the PCB business as a result of this.
RS Simha, MD & CFO, AT&S India, previously told CircuitDigest exclusively that the current challenge confronting the industry is balancing supply and demand environments. The effects of a sluggish supply chain are becoming more apparent, and we can anticipate difficulties brought on by a lack of key components. The pressing need of the hour is for there to be no disruption in the supply chain, and the current trend in the industry is towards “no impact” and “minimal impact” in various component categories. In addition, he expressed his belief that PCB demand would continue to be high in the foreseeable future. PCBs manufactured in India are currently tailored toward use in high-end car, industrial, and medical settings. Despite their widespread use, copper-based materials like copper-clad laminates, prepregs, and copper foils are notoriously difficult to come by due to a combination of high demand and slow production.