The global landscape of PCB assembly capabilities is rapidly evolving, with forecasters predicting a continuous expansion of PCB manufacturing capacity over the next 10 years. The global PCB market is projected to achieve a compound annual growth rate of 5.6%, rising from $63.9 billion in 2019 to $90.1 billion in 2025.

　　This rapid growth necessitates swift changes and improvements in production processes and capabilities, along with the establishment of new manufacturing plants for the semiconductors needed in construction.

　　The CHIPS and Science Act is groundbreaking legislation with the potential to revolutionize how we use technology to improve lives. The act aims to make the United States a stronger competitor in markets once spearheaded by American innovation.

　　Robotics and smaller chips providing more power to handheld electronics mean constantly shifting PCB manufacturing capabilities. In fact, semiconductors are projected to become a trillion-dollar industry by the end of this century.

　 　However, what does this mean for the PCBs behind the scenes?

　　While PCB manufacturers find the demand for PCBs needed in high-performance semiconductor production to be very large, these PCBs are not prioritized for production on their own machines. New manufacturing plants have been chosen to produce semiconductors for the automotive or electronics industries. So where are the robots and other machines needed to manufacture these semiconductors?

　 　The Chips and Science Act: Tracking the Data

　　Introduced in 2021 by Senators Chuck Schumer and Lisa Murkowski, the CHIPS and Science Act of 2022 established three initiatives aimed at strengthening the American semiconductor industry:

　　The American Chips Program, which will provide incentives for businesses to invest in advanced chip technology.

　　The American Science Program, which will fund research and development of emerging technologies.

　　The Innovation Fund, which will provide grants to encourage innovation in key industries.

　　The act aims to ensure that the United States remains globally competitive in technological advancements and PCB manufacturing capabilities by providing incentives to invest in cutting-edge technologies and research.

　　The plan will allocate $280 billion over the next 10 years:

　　$200 billion for scientific research and development and commercialization;

　　$52 billion for semiconductor manufacturing, research and development, and workforce development;

　　$24 billion for chip production;

　　$3 billion for cutting-edge technology and wireless supply chain projects;

　　The CHIPS Act also allocates $2 billion to the U.S. Department of Defense to fund microelectronics research, manufacturing, and workforce training. An additional $500 million will go to the U.S. Department of State to coordinate semiconductor supply chain security with foreign government partners.

　　Furthermore, $1.5 billion will support the U.S. Telecommunications Act of 2020, aimed at enhancing the competitiveness of the open RAN (radio access network) 5G network software and hardware supply chain.

　　 Going Operational: Will New PCB Plants Make a Difference?

　　Semiconductor manufacturing is gaining increasing attention and importance in the United States. Some companies have already begun efforts to solidify their foothold.

　　The plant is expected to bring 600 jobs to the region and reach full capacity by 2029. It plans to increase its revenue to $1.5 billion by fiscal year 2024, partly due to the much larger chip output of the Mohawk Valley plant compared to the North Carolina plant. Semiconductors for the automotive industry are a major focus of the Mohawk Valley plant.

　　Planning and financing issues for the plant have existed for decades. The deciding factor may have been New York State providing a grant to cover half of the plant's $500 million construction cost.

　　Hopes are high for sparking a new electronics manufacturing revolution, bringing computer chip production back to its birthplace. However, these hopes may not fully account for the fact that current technology is advanced because it is produced by a series of multinational corporations. In fact, tens of thousands of companies contribute to the supply chain that drives technological progress.

　　Competition also remains fierce, as Taiwan is also trying to increase semiconductor production. Taiwanese chipmaker TSMC currently handles 92% of advanced semiconductor production, winning the race to manufacture small transistors. TSMC produces chips with transistors less than 10 nanometers wide.

　　Semiconductor Manufacturing and Fabrication Plant Construction

　　Both PCB manufacturing and semiconductor manufacturing processes must be carefully handled—meaning more automation is involved, and more construction and production line setup costs.

　　A particularly important part of the production process is lithography, where tiny patterns are imprinted onto the chips. Another key step in robotic success is deposition, where layers of metal are added to the silicon carbide.

　　Both processes rely on semiconductor manufacturing automation to minimize human contact with sensitive components. While these steps are carefully monitored by personnel outside the cleanroom, there is no direct human involvement.

　 　Construction Costs and Site Requirements

　　Building a semiconductor manufacturing plant requires strategic planning and sufficient financial backing to complete the entire process. The construction cost of a manufacturing plant ranges from $1 billion to $20 billion—depending on the complexity of the chips.

　　First, the location of the manufacturing plant must meet several key requirements:

　　Proximity to a reliable power source;

　　Proximity to a large body of water;

　　Avoidance of proximity to airports or fault lines, as regular vibrations can disrupt the precision of machinery.

　　The plant will also generate carbon emissions and wastewater, so it is best to locate it away from communities.

　　Supply chain issues have also been persistent. Chip production sometimes requires up to 1,000 steps, with components needing to cross borders in 70 countries. A single disruption can delay releases, as there are often no alternatives.

　　As for specialized supplies needed for chip manufacturing, options are also limited. Semiconductor equipment manufacturers are specialized manufacturers, sometimes forming market monopolies simply because of the complex functions required. Only one company in the Netherlands produces the specialized lithography tools needed. Meanwhile, two companies in Ukraine supply neon gas, another crucial component of the process.

　 　Technological Revival Poised, US Air Following Up

　　For a considerable period, the demand for semiconductors and PCBs in the technology sector will remain strong, while supply will not increase. Many predictions about new plants exist, but the feasibility of these major projects reduces the likelihood of realization.

　　Plan ahead to maximize PCB manufacturing capabilities

　　With increasing demand, the feasibility of large-scale manufacturing plant construction is questionable. Considering new projects and regulations in advance is worthwhile. PCB manufacturing companies and their OEM partners need to focus not only on opportunities but also on the potential problems of component obsolescence. PCB testing will continue to present unique challenges in 2023; consider using our free resources to help you address these issues.