FOR SEVERAL CRITICAL REASONS, the electronics manufacturing industry has a high PCB assembly semiconductor dependency. They play a pivotal role in every electronic device and system; their obtainability directly impacts PCB assembly (PCBA) companies such as ANZER. That accessibility is determined directly and indirectly by several underlying factors related to using semiconductors.

Semiconductors are fundamental components of almost all electronic devices and systems. They serve as the brains of electronic circuits. Printed Circuit Boards are designed to accommodate these components, forming the backbone of such devices. Manufacturing subassemblies or complete box builds, the electronics in a product is what a PCBA company like ANZER does. Something that requires a high degree of expertise, knowledge, and equipment to produce consistent, high-quality, highly reliable electronic devices.

As technology advances, electronic devices become more compact and integrated. Miniaturization often relies on smaller, more powerful semiconductors that can be mounted on smaller PCBs with densely packed components (consider a cellphone). At ANZER, like our competitors, we must adapt to accommodate these semiconductor packages. This frequently requires investments in the latest and most advanced manufacturing and automation equipment. Without this, electronics manufacturing companies cannot remain viable businesses because of the PCB assembly semiconductor dependency.

Further, semiconductors are tailored to specific functions, from microcontrollers and microprocessors for computing devices to power management integrated circuits (ICs) for energy-efficient systems. PCBA businesses must source and integrate the appropriate semiconductors based on each client’s requirements. As customers advance their products, the PCBA must have consistent access to these devices. That access is conditioned on adequate operating capital for several aspects of the business, none of which can be overlooked.  

The semiconductor supply chain is complex and sensitive to global market forces. Geopolitical tensions, natural disasters, and supply-demand imbalances can disrupt semiconductor production and distribution. These disruptions directly impact the ability of PCBA businesses to procure necessary components on time. The past few years are a vivid example (COVID) of how reliant electronics manufacturers are on semiconductors, without which the livelihood of so many individuals would be crushed. Simply put, the world’s reliance on food production equipment, transportation, computers, and communication devices is produced by OEMs (Original Equipment Manufacturers) and PCBA companies. Many OEMs are increasingly outsourcing their assembly work to PCBA companies, given that the PCB assembly semiconductor dependency is ever-increasing.

Semiconductors are sensitive to environmental factors like temperature and humidity, and they require proper handling and storage to maintain their functionality. ANZER, like all PCBA businesses, must invest in people and equipment to manage the stringent quality control measures required. Training new and existing employees and the cost of their certifications to handle these semiconductors is not optional.

Many industries, such as aerospace and medical devices, have stringent regulatory requirements for electronic components. PCBA businesses must ensure that the semiconductors used in their assemblies meet these regulatory standards, which may involve additional testing, special handling, and certification processes. For example, ANZER has invested in several certifications that require periodic recertification. These include:

ISO 9001:2015 (Quality Management Systems)

AS9100:2016 (Aerospace – Design & Manufacturing)

ISO 13485 (Medical Manufacturing)

The PCB assembly business is intricately tied to semiconductors’ availability, functionality, and adaptability, often termed PCB assembly semiconductor dependency. The success of ANZER or any PCB assembly company hinges on its ability to source, integrate, and manage semiconductor components effectively to meet the diverse needs of our customers while navigating the challenges of the semiconductor supply chain.