China set to impose stricter regulations on PCB industry, Digitimes reports

China will implement a new set of strict regulations on the operations of the PCB industry on February 1, which may threaten the survival of small- to medium-size makers, according to sources from the related upstream supply chain.

In addition to having higher requirements concerning environmental matters, the new regulations will require makers to have technological patents for their products, to set aside at least 3% of their annual revenues for R&D, and to achieve annual utilization rates of over 50%.

The regulations impose specific requirements on different type of applications, but makers of PCBs for aerospace and military applications will not be affected by the new regulations.

The sources believe the China government is looking to strengthen the leading players’ dominance in the industry as the new regulations will accelerate the elimination of small- to medium-size players that give priority to shipment volumes over technology development.