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- The Middle East conflict has disrupted global supply chains for key raw materials used in printed circuit boards (PCBs), driving sharp price increases across the electronics industry.
Printed Circuit Boards (PCBs)
- It is a layered mechanical structure that holds and electrically connects components in a circuit.
- It is used in almost all modern electronic devices like smartphones ,computers tablets, AI servers and smartwatches.
- It provides the base for assembling electronic parts and guides the flow of electricity between them.
Raw Materials Used for PCB Manufacturing
- Resins: High-purity Polyphenylene Ether (PPE) and epoxy resins serve as critical base materials for laminates — the insulating substrate of the board.
- Copper Foil: The primary conductive material, accounting for roughly 60% of total raw material costs.
- Glass Fibre: Used as a reinforcing material within the substrate to provide structural strength and insulation.
- Helium & Bromine: Qatar provides over a third of the world’s helium (used in semiconductor lithography), while two-thirds of bromine (used for etching) comes from Israel and Jordan.
Key Issues
- A strike on Saudi Arabia’s Jubail petrochemical complex has disrupted production of a key material (PPE resin) used in printed circuit boards.
- China dominates global PCB manufacturing, accounting for over 50% of global output creating single-source concentration risk.
- India’s PCB industry remains heavily reliant on imported raw materials such as copper-clad laminates, specialty chemicals, and soldering compounds.
- India imports the bulk of its PCB requirements from China, Taiwan, and South Korea, making it a strategic vulnerability for defence, telecom, and EV sectors.
India’s Policy Interventions
- Electronics Component Manufacturing Scheme (ECMS), 2025: Approved by the Union Cabinet in April 2025 under MeitY with an outlay of ₹22,919 crore.
- Specifically targets PCBs, SMD passives, Li-ion cells, capacitors, connectors, copper laminates — areas of peak import dependence.
- Offers up to 25% capital subsidy and 4–6% incentive on incremental sales — distinct from PLI (which rewards final product sales).
- PLI for Large Scale Electronics Manufacturing (LSEM): Attracted global players (Apple via Foxconn and Tata) to manufacture in India.
- India is now the world’s second-largest mobile phone manufacturer.
- Limitation: focused on assembly, not component/PCB manufacturing
- Semiconductor Mission (India Semiconductor Mission): Six semiconductor projects in execution; four more approved in Odisha, Punjab, and Andhra Pradesh.
- Aims at a self-reliant semiconductor-to-PCB value chain by 2030.
Source :IE
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