Cathedrals in the Desert

The current Chips Act focusses too narrowly on front end chips manufacturing, while the domestic electronics packaging ecosystem is neglected. This is the outcome of the public consultation, recently organised by the European Commission.

Microprocessor chips are the brains of all modern electronics. But they do not work in isolation. Component and module level packaging make up the nerves and veins of electronic systems, by distributing power, and by connecting signals to and from its brain. The packaging technologies provide the backbone and armour, as the sensitive EEE parts need protection from mechanical and thermal stress, to operate reliably and in unison within the electronic system.

Europe is at risk of completely losing its Printed Circuit Board industry, as the market share drops to a meagre 2%. The wider ecosystem for raw material supply has already disappeared – only one laminator and one copper foil supplier remain. Moreover, such materials and processes are enabling technologies for advanced packaging and heterogeneous integration of chips. The 209 respondents of the public consultation highlight the absence of IC substrate capabilities, the decline of PCB industry and the undesirable effects of import tariffs on raw materials.

Chips cannot function without component and module packaging, design and assembly. Overseas dependencies for these critical technologies is unacceptable for strategic applications. The EIPC welcomes the opportunity of the public consultation to propose mitigations, and continues to collaborate with association partners to advocate for a sovereign European PCB industry.