Exit strategies for production

VAC Consulting | Published May 30, 2023
Exit strategies for your PCB production

What is your exit strategy for PCB production?

Numerous companies in the electronics industry are planning their exit strategies for their PCB production from China.

For years it has been the norm to rely solely on production running in 1 country – often China, because of their skilled PCB production and great price for manufacturing. With larger companies even having invested in their own big factory facilities there, to ensure their production is running smoothly.

What we have learnt from the current geopolitical climate of the world (as of spring 2023) and the war in Ukraine, is that the traditional strategy will leave your production vulnerable. For multiple reasons. Hence why more and more are making exit strategies to diversify their sourcing and production.

This is a tendency that will only grow in the future – and something we can help you manage!
The US's ``CHIPS & Science act`` and the ``European Chips Act``
… Are backing this tendency up, by providing more alternative places of production in the near future. Meaning more stable and less liable production lines for your projects, even when the geopolitical climate is challenged

With the mobilization of more than 43 billion euros, the European Chip Act will not only set measures in place to be able to respond faster to any future disturbances in the supply chain. It will also fund production as well as support innovation in semiconductors with “the Horizon Europe” and “Digital Europe programme”.

The goals for the ``European Chips Act`` are to:

  • “Strengthen Europe’s research and technology leadership towards smaller and faster chips”
  • “Put in place a framework to increase production capacity to 20% of the global market by 2030.”
  • “Build and reinforce capacity to innovate in the design and manufacturing and packaging of advanced chips.”
  • “Develop an in-depth understanding of the global semiconductor supply chains.”
  • “Address the skills shortage, attract new talents and support the emergence of a skilled workforce”.

These actions will be taken in place, to avoid another semiconductor shortage. Which is very important since industry experts expect demands for chips to double by 2030. With the potential to leave healthcare- and the defence section vulnerable amongst others, due to the heavy increasing use of semiconductor technology.


You can read more in depth about the European Chips Act here

Danish investment
It’s not only the European government that is ready to make a change. The Danish microchip-production will be supported by a big new investment made by DTU.

DTU expands the capacity for production of microchips. The new cleanroom building will consist of 2 floors and a basement with a total of 5600 square meters of space. Add that to the already existing 1350 square meters, and by 2026 they will have 6950 square meters of cleanroom to keep up with the already increasing demand.

As stated earlier, a chunk of the European chip act fund will go towards research and development of new chips. And with the new space underway DTU will stand more equipped to offer their spaces to other companies, so that they together can provide a foundation which will altogether benefit the European eco system – as well as the Danish capability for digitization and strengthening our competitive edge in the market.

To read more about the Danish chip investment, click here.

To visit DTU’s website, click here.

Let us help you!

Through us you can have multiple reliable sources & at the same time optimize the manufacturing of your PCBs. By doing this you can diversify your production line, leaving it less vulnerable to outside circumstances, while freeing up your own time to focus on developing your products.
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