China dominates global printed circuit board (PCB) production, originating about 67% of global exports, according to Altana analysis of UN Comtrade data. Less realized, but visible in multi-tier product value chains in Altana’s Product Network, is the vast reliance on China’s production of the sub-componentry necessary to create a functional PCB assembly — resistors, capacitors, diodes, semiconductor parts, specialized wire and cable, and electronic integrated circuits.
In fact, U.S. electronics value chains are broadly dependent on foreign inputs, and both direct shipments and activity upstream in product value chains introduces exposure to manufacturing in adversary nations, as revealed in Altana’s PCB analysis.
The manufacturing of U.S. electronics and electronics components is only possible with foreign suppliers: 88% of electronics product value chains include foreign inputs, Altana found.
“Presently, most U.S. electronics, automotive, and defense manufacturers lack the tools and means to see, secure, and control upstream product value chains, leaving blind spots in their reliance on foreign manufacturing capacity,” Altana says.
Key takeaways:
· About 67% of the global exports of PCBs originate in China, with unseen China reliance upstream in U.S.-bound PCB shipments from friendlier trading partners, such as Vietnam and India.
· In 2024, Vietnamese manufacturers consigned more than 7,000 shipments of PCBs to the United States valued at about $78 million. Roughly 20% of that trade included Chinese components from upstream in the supply chain. India registers even more upstream reliance on China: In 2024, more than 61% of India’s roughly $23 million in U.S.-bound PCB shipments had Chinese sub-components upstream. China was also the primary upstream supplier of sub-components for Mexican PCB manufacturers that supply the United States.
· The most common PCB sub-components present upstream in the product value chains were electronic integrated circuits; telecommunications apparatuses; transformers and inductors; diodes, transistors, and other semiconductor devices; and electrical capacitors.
