Japan Pinch On Printed Circuit Board Production Forecast To Ease

The news of the re-start of production confirms Japan’s manufacturing agility to overcome exceptional conditions and a commitment to deliver continuity in a highly complex IT supply chain.

Copper-clad laminate is a critical raw material used in the production of Printed Circuit Boards (PCBs) and production is forecast to resume within two weeks. The news comes on the basis that there are no more problems discovered in the plants’ fabric and utility, power and raw material sources.

When the two factories in question, MGC and HKP, reopen there will have been no shipments of copper-clad laminates for approximately four weeks from these key suppliers.

Probrand’s Iain Bowles, said: “The total impact of this shortage is unknown as many manufacturers of PCBs have turned to their stock reserves to cover the period of no shipments from the two main suppliers.

“With a 70% hole in the supply of copper clad laminates, PCB manufacturers have been chasing a share of the remaining 30% of source material globally. This shortage in copper-clad laminates will simply not be able to pick up the deficit of 70% global supply multiplied by four weeks. The cross-over period back to normal supply will challenge the very core of the supply chain.

“Japan is king when it comes to cost effective production of this material and alternative sources will be costing manufacturers more; material price, freight and currency. This is likely to be felt in product prices further down the supply chain in the coming months.

“The big test is observing how stock and pricing in the IT channel will be effected by this considerable unrest in the global supply chain. There perhaps could not be a bigger test of manufacturers Business Continuity implementation and it is going to be very interesting to see which manufacturers have got it right and which have got it wrong.”