Synopsis
Domestic PCB manufacturers are demanding a 45-50% price increase and duty exemptions for imported components due to escalating production costs driven by the West Asia conflict. The India Printed Circuit Association warns that localization efforts in the $7.27 billion market will stall if manufacturers continue to absorb losses, with input prices soaring up to 150%.Listen to this article in summarized format
India Printed Circuit Association (IPCA), in a letter to industry stakeholders, said localisation in the $7.27-billion domestic PCB market will be frozen if manufacturers are forced to continue absorbing losses. It noted that prices of certain inputs have jumped up to 150% in six months.
The association asked PCB makers to engage with user customers such as original equipment manufacturers, electronics manufacturing services (EMS), and electronics manufacturers to push for a minimum 45-50% upward revision in prices.
Considered as the essential backbone of electronics, PCBs provide the physical foundation and electrical pathways that allow delicate components to communicate. Rising PCB prices may affect overall electronics prices.
“Most of the PCB manufacturers are unable to pass cost pressures to end-product prices,” the letter said. “Many enterprises are forced to raise prices only for new products while absorbing losses on existing orders. Industry-wide profitability in predicament with some manufacturers are at risk of closure.”
ET has reviewed a copy of the letter dated May 29.
More than 90 days after it started, the ongoing war in Iran and the Persian Gulf have continued to stress the supply chain. Air freight costs have risen 40-50% owing to rising jet fuel costs, and delivery lead times extended to 20 weeks for copper-clad laminates (CCL), up from just four weeks earlier, IPCA said.
A foundational raw material, CCL production has come under pressure after supply of petrochemicals including high-purity polyphenylene ether (PPE) resin dwindled. Saudi Arabia's Jubail petrochemical complex, which produces 70% of global supplies, shut down in March following drone strikes.
Meanwhile, a shortage of glass fibre and copper foil has emerged owing to major diversions towards high-end PCB manufacturing for artificial intelligence (AI) servers and 6G telecom gear, the letter said.
Import pressure
“We have already given certain price increases, not 45-50%, but based on detailed negotiations, to PCB manufacturers,” said Jasbir Singh Gujral, managing director of electronics manufacturing services (EMS) company Syrma SGS. “The demands for a price rise are genuine since the US dollar has appreciated, and metal prices have gone up,” he added.
Syrma itself is expected to begin multi-layer PCB production within the next 8-9 months at its upcoming plant in Andhra Pradesh.
While the global scenario is challenging, Gujral pointed to continuing PCB supplies from China.
IPCA officials said the association may write to the ministries of commerce and industry and electronics and information technology, seeking further restrictions on PCB imports and over alleged circumvention of the 30% anti-dumping duty on PCBs imported from China and Hong Kong.
Inbound shipment of PCBs rose 11% to $1.67 billion in FY26.
The association will also request duty exemptions or reductions on imported input materials, officials said.
The MeitY is monitoring the supply chain disruptions and is providing inputs to the commerce department, officials said.
They pointed out investment proposals received under the ongoing electronic component manufacturing scheme (ECMS) will meet 100% of India's domestic demands for copper clad laminates and 50% demand for PCBs going forward. Construction of units that will manufacture multi-layer PCBs, high-density interconnect PCBs, and flexible PCBs, are ongoing.
