Confronted with fierce globalized competitions, TPCA (Taiwan Printed Circuit Association) published the “Recommendations on the Development of PCB Industry in Taiwan.” Joined by ISTI (Industry, Science and Technology International Strategy Center) and ideas from specialists in Taiwan and internationally renowned research institutes, TPCA summarized four global trends that will affect the printed circuit board industry in the next three years. The four trends are: “the wrestling between global super powers and its impact on the industrial infrastructure layout;” “the launching of 5G applications has spawned a vast array of business opportunities;” “green sustainable productions enable the implementation of a circular economy;” and a “weakened labor supply prompts the rise of automated AI.” From the five aspects of product layout, technical materials, intellectualization, environmental, health and safety policy and human resources, 20 key issues and 49 recommendations and guidelines were raised. Li Changming, Chairman of the Taiwan Printed Circuit Association, hoped that the "Recommendations on the Development of PCB Industry in Taiwan" will serve as a guide for the sustainable operation of the printed circuit board industry chain in Taiwan and invigorate the synergy among industries, governments, academic and research institutes. 

  TPCA released two white papers in 2014 and 2017, "building Taiwan's high-value-added, eco-friendly, intellectualized and highly competitive printed circuit board industry" was the vision to promote industrial development. Looking back to the past achievements, the total output value of the printed circuit board industry chain in Taiwan increased from NTD $ 800.9 billion in 2014 to NTD $ 964.3 billion in 2019; TPCA helped the world's first standardized smart production PCBECI to take shape, and introduced the global and industry’s first PCB Smart Manufacturing Roadmap and PCB Circular Economy Roadmap. In order to elaborate on the core development and be prepared for future challenges as set out in the White Papers, TPCA will discuss further on the nucleus of global development trends, raise key issues and provide recommendations. The following is a summary of the four major trends and recommendations.

The issues of globalization are in the midst of a brewing storm and have tremendous impact on the industrial infrastructure layout and to revolutionize the infrastructure layout, we must put our priority back to Taiwan

  The trade war between China and USA started in 2018, the rise of trade protectionism was also observed in Japan, South Korea and the EU. In addition to imposing sanctions, some countries go to extreme lengths to boycott established super powers in high-tech supply chains. In early 2020, the global COVID-19 (Coronavirus) pandemic has unprecedented impact on regional production activities and tarnished the global economy on an extended scale. During this period, the problem of excessive concentration of global supply chains has surfaced. Whilst the pace of globalization has slowed down, Taiwan-invested enterprises and supply chains manufactured 63% of their products in mainland China, which represents a rather high production ratio; the reconsideration of flexibility should be one of their global strategies. We would recommend the government to implement specific incentives or subsidies to encourage investments in Taiwan. It would be beneficial for the enterprise infrastructure layout, if the government could: assist enterprises in intellectualization; stipulate environmental protection policies that are in line with the PCB industry; stabilize the source of manpower; provide diversified investment conditions for the industry to balance the production capacity and ratio, diversify product structures throughout various regions and establish independent supply mechanisms.

The launch of 5G applications has spawned a vast array of business opportunities and the government must lead the way to integrate industries

  With the outbreak of the COVID-19 pandemic, the progress of 5G applications including consumer brands and the entire electronic industry chain has been severely affected. Nonetheless, in terms of the development trend in the next few years, 5G is still the key kinetic energy to drive the growth of industrial economy and plays a strategically vital part for every country. In Taiwan, 5G supply chains benefit from the layout experiences gained from 3G/4G; various correlated suppliers also manufacture 5G components such as the crucial chips from upstream industry, parts, modules and mobile handsets, etc. However, with the fierce 5G competitions worldwide, we would recommend that the government take the lead in integrating 5G development key elements, for instance, the research and development of 5G materials and the skill-based education. The integrated force among industries, governments, academic and research institutes through the government’s leadership will empower Taiwan PCB and electronic upstream and downstream supply chains to an elevated level.

Green sustainable productions enable the implementation of a circular economy and policies will invigorate the ‘circulating’ economy

  Green productions and a circular economy have become global trends. From international organizations, individual countries and enterprises, they have proposed assorted development agenda for a circular economy. Compared with the past, enterprises and society pay more attention to the implementation and management of environmental, health and safety policy facilities. On the circular economy, there are numerous details and issues yet to be dealt with in reality; and from industry’s perspectives, it is anticipated that industries will encounter an increased demand for circular economy from governing bodies and customers in the years to come. Meeting the requirements of environmental, health and safety policy has become one of the necessary survival conditions for enterprise sustainability. For the PCB industry, green production requires full engagement of the entire supply chain. In addition to improving the levels of environmental safety, health management and technology that will meet customer requirements, the PCB industry still needs the assistance from the government to develop a globally standardized mechanism and a verification platform, as well as the training and education for green professionals, so that the circular economy can be implemented rather than just being a catchphrase.

Weakened labor supply prompts the rise of automated AI and in essence overturns future labor force and work values

  The ageing population is an inevitable issue of the future world and its impact on labor force supply will gradually surface. Whilst we embrace the arrival of AI, in addition to the evolving business opportunities of smart AI products, from the production’s perspectives, we can also anticipate enhanced results brought about by AI in reducing industrial risks and accidents, assisting in yield improvement, materials forecasting, process optimization and upscale technologies. The introduction and implementation of AI in production plants would appreciate the government’s pilot programs and leadership; additionally, the retention of foreign trained professionals, more flexible working hours and foreign labor policies will help the evolution in industry professionals and production innovations. Established in 1998, TPCA witnessed the ups and downs of the printed circuit board industry in Taiwan. Since 2010, the printed circuit board industry in Taiwan has been the world ’s No.1, in terms of value of output and production capacity, domestically and internationally. TPCA has accompanied the industry all along through product changes, production plant migration and increased industrial competitions. In recent years, in the wake of global trade competition, the pandemic, the imminent 5G market that will change the industrial ecology trends, all these factors will induce immense qualitative and quantitative modifications to the industry. We sincerely hope that through "Recommendations on the Development of PCB Industry in Taiwan," all industries, governments, academic and research institutes will join forces to face, accept and deal with these unstoppable global trends and issues, so that the printed circuit board industry in Taiwan can continue to stand firm and maintain its leading competitiveness worldwide.