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What are the advantages of manufacturing PCB in China

What are the advantages of manufacturing PCB in China

2020-04-08

China's electronic manufacturing services (EMS) have become a common solution for global electronics companies. However, it must be admitted that Chinese electronics manufacturers are also blamed for low quality, inaccuracy or low reliability. However, as one of the largest developing economies in the world, China already has unlimited growth momentum and opportunities. As long as they do the best, the cost and performance of Chinese PCB manufacturers will definitely reach the best balance.


Why made in China? 

First, China is rich in resources to support smooth electronics manufacturing. Labor costs are relatively low because of strong domestic demand. With the comprehensive supporting industries, China has become one of the largest countries providing electronic manufacturing services. Among them, PCB (printed circuit board) manufacturing has surpassed Japan since 2006. To date, the PCB industry, rooted in China, covers about 50% of the international business, so China has become the largest supply base for PCB and PCBAs (printed circuit board assemblies). In addition, the proportion of traditional single/double-sided PCB boards and multi-layer PCB boards is decreasing, while the proportion of high-tech and high-value PCB boards, such as HDI PCB, thick copper PCB, etc., is increasing. The result is' talent is natural, but it is a natural choice.


Second, China has such a stable political, economic and natural environment that there is no need to worry about product safety, unpredictable extended lead times or endless idle expectations. This has big implications for electronics manufacturers. As one of the major countries with economic vitality and energy, China has always attached great importance to the continuous development of the country and its people.


Third, China strives to achieve scientific progress. The resolution changed from "made in China" to "created in China". The fact that China is developing as a manufacturer or copier can never be eliminated. But if you persist in this impression today, you will be laughed at. China leads the electronics industry. For example, some companies have made great achievements in top technologies such as Flex PCB and Flex rigid PCB. With the continuous upgrading of PCB manufacturing technology, China is experiencing a stable and optimized product structure. In addition, a series of newly established strategic industries have been established, including artificial intelligence, big data , and cloud computing, all of which belong to the advanced manufacturing field based on product technology and manufacturing requirements.


In addition to the increase in technology, Chinese electronics manufacturers are also becoming more environmentally conscious. In recent years, manufacturers have had to comply with increasingly stringent environmental regulations, and some substandard factories have even been forced to close because they produce more than they are required to. In electronic manufacturing, RoHS certification and lead-free requirements represent fundamental requirements for the environment.

Fourth, as early as more than 30 years ago, when China implemented the opening-up policy, China began to play an active role in the international trade arena of comprehensive export promotion. Just as President Xi Jinping once said that China suffered from seclusion, China has been actively pursuing reform and opening-up policies and playing an increasingly large role in the international trade arena such as the G20 and APEC. One Belt And One Road, in particular, expands the scope of China's international trade by linking history and modernity.

How to make full use of China's electronic manufacturing resources?

Although the advantages of electronics manufacturing are listed in China, you should keep the following rules in mind to avoid irresponsible hidden traps set by manufacturers.

Rule 1: Never believe that prices are cheap

China stands out for its low prices, mainly due to low labor costs, low raw materials , and mass production. Today, however, that is not the case. Because Beijing has been trying to shed the name of a resource-based country, it no longer holds on to the factors that keep costs low. The indispensable development path must be to win only the transitional period of development through the sacrifice of natural resources. As a result, a variety of restrictions have been placed on electronics manufacturers, particularly in the area of environmental protection. Now that resources are not freely available, costs will eventually rise.

As a result, it is becoming increasingly difficult to find a Chinese electronics manufacturer that can offer the same products at the same cost as before. In addition, low prices often seem unrealistic unless you have exactly what you want. In short, even in China, low prices are unrealistic.

Rule 2: The open-door policy is one of the key factors in proving its reliability. In order to ensure the authenticity and reliability of electronic manufacturers or assemblers in China, it is very necessary to visit to obtain your own conclusions. After all, China has a lot of electronics manufacturers and some so-called manufacturers who are actually middlemen. They claim to be manufacturers and are crazy about the prices. But that is not the case. They first receive your request for a quotation and then contact numerous manufacturing plants to obtain the best products they are interested in. In this process, their only concern is a low cost, they take product quality for granted. However, even the low cost has nothing to do with you, because the middleman must get most of the benefit. At the very least, product quality and delivery time are never guaranteed.

Companies with their own electronics manufacturing plants will take a different approach. They have strict control over everything, and they can provide you with certain responses. In addition, those electronics manufacturers are willing to welcome customers to visit their companies or factories because they can't wait for customers to realize their reliability.

Differences between electronics manufacturers and middlemen lead to different attitudes towards customer visits. The former naturally welcomes their customers, while the latter may deny them access by providing reasons, so this may be one of the most important factors in assessing the authenticity and reliability of an electronics manufacturer.

Rule 3: It is necessary to sign an NDA with your partner electronics manufacturer

NDA is a short form of confidentiality agreement that protects your intellectual property from disclosure. As your core competitiveness, intellectual property will never be damaged or leaked, otherwise, it will bring disaster. Intellectual property rights are said to be challenged in China. The same is true for substandard electronics manufacturers. So far, every specialized electronics manufacturer in China has been able to enter into a confidentiality agreement with its customers and accurately define its responsibilities and obligations and specific terms. As long as such a confidentiality agreement is signed, there is no need to worry about the security of intellectual property.

Rule 4: Cost-saving tip: select freight collection

I know some companies that say no to offshore manufacturing, as they do in China, simply because they have to pay relatively high shipping costs. Expectations of lower costs in Chinese manufacturing have been dashed by high shipping costs, which are often another key factor.

In my experience, it is very difficult to find an electronic product. Manufacturers who can provide free shipping service. Even if such  free service is provided, do you think it is possible to get both high quality and free freight according to the current cost analysis in China? I don't think so.

The best solution to beating the high freight rates is to charge them where possible. When your shipping partner allows your company to get a relatively low freight rate, it is best to take advantage of this offer rather than pay the freight arranged by the contract manufacturer. After all, shipping charges are transparent, and your electronics manufacturer's shipping may be less explicit.

Electronics manufacturing in China is not a nightmare. However, when China's electronics manufacturing resources are best utilized, it will be a perfect choice. As long as you meet the above rules, you are sure to find a reliable electronic manufacturer.

                                                                           

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