PCB Manufacturers Demand Significant Price Hike Amid Supply Chain Crisis
PCB makers seek 50% price hike as Iran war crushes supply chains
Image: The Economic Times
Domestic printed circuit board (PCB) manufacturers in India are requesting a 45-50% price increase and duty exemptions on imported components due to rising production costs linked to the ongoing conflict in West Asia. The India Printed Circuit Association warns that localization efforts may stall if manufacturers cannot offset losses.
- 01PCB manufacturers are experiencing input cost increases of up to 150% within six months due to the West Asia conflict.
- 02Air freight costs have surged by 40-50%, and delivery times for copper-clad laminates have extended from four weeks to 20 weeks.
- 03The ongoing war has disrupted the supply of essential materials like high-purity polyphenylene ether resin, impacting PCB production.
- 04The India Printed Circuit Association plans to engage with government ministries to address import restrictions and seek duty exemptions for key materials.
- 05Inbound PCB shipments increased by 11% to $1.67 billion in FY26, indicating a growing demand despite supply chain challenges.
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Domestic printed circuit board (PCB) manufacturers in India are advocating for a 45-50% price increase and duty exemptions on imported components due to unsustainable production costs exacerbated by the ongoing conflict in West Asia. The India Printed Circuit Association (IPCA) highlighted that input costs have surged by up to 150% in just six months, threatening the viability of local manufacturers. The letter from IPCA noted that many PCB makers are unable to transfer these cost pressures to end-product prices, risking industry-wide profitability and potential closures. The conflict has also led to a 40-50% increase in air freight costs and extended delivery times for essential materials, such as copper-clad laminates, from four weeks to 20 weeks. Furthermore, the supply chain has been strained due to a shortage of glass fibre and copper foil, as resources are diverted to high-end PCB manufacturing for AI and 6G technologies. In response, the IPCA plans to engage with government ministries to seek further restrictions on PCB imports and request duty exemptions on critical input materials.
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The price increase in PCBs could lead to higher costs for electronic products, affecting consumers and manufacturers alike.
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