Here is a piece of big news for PCB buyers - China PCB production has been disrupted due to widespread power cuts, and the electricity curbs to the PCB industry are not temporary.
The three advanced PCB and PCBA manufacturing bases of PCBONLINE located in Jiangsu, Jiangxi, and Shenzhen will also be affected. So we are here to notify our customers to settle down business plans and order PCBs/PCBAs in advance in case of delivery delay.
Widespread Power Curbs Are Happening to PCB Factories
Since late August 2021, 20 provinces in China started implementing power curbs to industrial production, including PCB manufacturing. There are 2687 PCB factories in the world, and 55% of them are located in China. Power crunch will affect PCB manufacturing and may cause PCB manufacturing reduction.
This piece of news posted by Cailian Press on September 23rd said, there would be three days of power cuts every week to notified industrial factories in Shenzhen starting from the 22nd. This is the epitome of the widespread power curbs to industrial production in China.
For example, most of the PCB factories in Jiangsu were notified of electricity cuts, which started on the 26th and ended on the 30th of September. (PCB factories in Jiangsu produce more than 15% of printed circuit boards in the world.)
Why are Power Curbs Implemented in the PCB Industry?
When many countries are looking for manufacturing increases in the post-pandemic time, why does China suddenly slow down PCB production? Here are three main reasons for the power crunch in the PCB industry.
First, PCB manufacturing is an energy-intensive and highly polluting industry. On September 16, 2021, the Chinese government issued a plan to tighten the control of energy consumption and intensity, which is called the dual-control policy. According to the monitored data of the State Grid Corporation of China, the first half-year witnessed 15.83% electricity consumption growth compared with the same period in 2020. To save energy and curb carbon dioxide emissions, it is inevitable for the PCB industry to undergo power restrictions.
Second, the soaring coal prices and low electricity prices in China force power companies to reduce electricity supply. Since this August, the futures of thermal coal has taken off by 70%. Two-thirds of electricity in China comes from burning coal, and the rising coal pricing increases the power generating costs. However, the Chinese government has always kept the electricity price low for residents and industries. To not lose too much money, the power companies are reducing the electricity supply. In such a case, energy-intensive industries such as the PCB industry are facing power curbs.
Third, power cuts may help adjust the unfavorable situation of the PCB industry. You may not believe that the PCB industry in China is low-profit, but it is true. Especially since 2020, all PCB materials pricing such as the copper-clad laminates have been rising, but PCB pricing goes up much less intensely. Power cuts to the low-profit PCB industry may help the PCB manufacturers to reduce the excess capacity. Both the PCB manufacturers and buyers can benefit from it in the long run.
PCBONLINE Takes Actions to Avoid PCB Delivery Delay
Facing widespread power cuts, as PCB buyers, is there anything you can do to avoid PCB production suspension? You may need to make schedules in advance and collaborate with a reliable PCB manufacturer, PCBONLINE. PCBONLINE is taking action to guarantee customers' in-time PCB delivery. PCBONLINE actions include:
- PCBONLINE factories constantly optimize manufacturing management to elevate efficiency without sacrificing quality.
- Constant updates on power cuts to our factories, and if there are any, our business specialists will inform customers to make schedules in advance.
- Daily review of all active orders in hand, and we make every effort to make them manufactured in time.
PCBONLINE saves no effort to manufacture PCBs and PCBAs in time but urges customers to order in advance in case of unexpected urgent power cuts of the day. If you are not one of our customers yet, it is beneficial to know more about PCBONLINE:
PCBONLINE is an advanced PCB manufacturer founded in 1999 with 3 large PCB and PCBA production bases in China. We provide one-stop PCB manufacturing including PCB fabrication, PCB assembly, electronic components procurement, all kinds of testing, conformal coating, and value-added services such as box-built assembly. No matter how complex the PCBs and assembly that you may need, PCBONLINE can handle your requirements with the highest quality in time.
As China implements the dual-control policy to achieve carbon neutrality, electricity curb is conducted to the PCB industry to hit the energy-control targets. PCBONLINE, always a quality PCB/PCBA supplier to you at any time, takes measures to ensure on-time delivery. As PCB buyers, it is also recommended that you make decisions and order in advance to avoid the PCB delivery delay.