All PCBs and PCB Assemblies Are Not Created Equal

PCBs and PCB assemblies are everywhere in today’s electronics industry. Find out why partnering with Kingstec gives you the best of both worlds for your contract assembly and manufacturing needs.

 Virtually every electronic device on the market relies on printed circuit boards (PCBs) and PCB assemblies in our 21st-century electronics industry. They’re so ubiquitous that some production managers have come to think of them as a commodity.

The virtual trade shows that industry leaders log into now are overflowing with samples of PCBs and PCB assemblies. Feeling spoiled for choice can leave some OEM managers with the impression that one supplier is the same as the next.PCBA

Unfortunately for them, that’s not true. There are essential differences between contract assembly and manufacturing service providers. So, designers have to remember that they’re entrusting their brand’s reputation for value and quality to the partner they choose.

At Kingstec, our approach to fabricating PCBs and PCB assemblies makes us the proven choice to add value to your manufacturing processes.

We Follow Industry Best Practices in Our Production Facilities

We follow industry best practices in our production facilities, based on our ISO 9001 and 14001 certifications. Our sites are Underwriter Labs (UL) certified, while some sites are certified to ISO 13485 for medical clients, and others are TS 16949 certified for automotive clients.

Kingstec can develop prototypes of your product design and conduct pilot runs. We’re also fully scalable, so we can grow with you to deliver high volume production. We can produce multi-layer PCBs and assemblies with anywhere from two to ten layers.

Our partners manufacture fine-line and spaces (3 mils/3 mils) that support the ongoing demand for smaller PCBs and PCB assemblies inside ever more portable devices. We can also offer routing, punching, beveling, and V-scoring techniques as part of our standard fabrication processes.

Production teams can deliver standard board thicknesses from 0.8 mm to 3.2mm. Our available finishes include ENIG, Flash Gold, Immersion Tin, HASL and lead-free HASL.

Our assembly lines can mount your product’s delicate components using either through-hole mounting (THM), where tried-and-true reliability is all that matters or contemporary surface mount technology (SMT) to increase component density and miniaturization.

We have multiple, fully loaded SMT production lines to ensure efficiency and reliability. We also use hot air reflow soldering techniques to ensure manufacturing precision when adding miniaturized components to circuits.

Our production lines have in-circuit testing (ICT) available for advanced quality assurance. Short and open circuits, resistance, capacitance, and other critical technical criteria are all parameters for ICT on individual PCBs and PCB assemblies. Available testing methods can apply flying probe and e-fixture technology.

Kingstec has been in business for over 37 years. In addition to our advanced manufacturing facilities and techniques, our management philosophy also sets us apart.

We provide our clients with end-to-end expertise throughout the product cycle. We offer complete solutions to your design, engineering, manufacturing, and logistical challenges.

Kingstec can look after every step, ensuring that your entire process is fast, efficient, economical and hassle-free. Our professional team has the electrical and mechanical engineering expertise to help fine-tune PCB and PCB assembly specifications, identify and fix problems, optimize facilities and guide you through every stage, from product concept through manufacturing execution.

We’ve nurtured multiple, long-term relationships with highly-skilled, Asia-based partners. They can deliver rapid turnaround times on your custom designs with rigorous quality assurance standards.

Doing Business with Kingstec Brings You the Best of Both Worlds

Doing business with Kingstec brings you the best of both worlds. You’ll be profiting from the advantages of offshore manufacturing while working with our accessible management team right here in Canada. Dealing directly with offshore suppliers can get complicated or distract you from your core business activities.

That’s the difference that working with Kingstec makes. We take on all of those challenges for you.  We’ll look after everything, making sure the entire process is fast, efficient, economical, and hassle-free. We address the day-to-day business, so there’s no need for you to stress about any of the hassles of doing business overseas, including language barriers or dramatic time differences.

We’ll deliver guaranteed quality using our expertly managed logistics. We know the Asian business and regulatory environment, and we have long-standing relationships with our trusted manufacturing partners, so we’ll secure your intellectual property. We’ll accomplish all of this with highly competitive pricing. We’ll deliver these commitments and more, backed by over 37 years of experience and trust.

We’d love to hear about your manufacturing requirements for PCBs and PCB assemblies for electronic devices. If you’d like to look at some product samples or get some free advice about your designs, you can get in touch with us using our contact form here.

You can also reach us in person by contacting our Senior Project Administrator – Business Development, Rosa Miu, at rosa.miu@kingstec.com or by phone at 1-905-766-9412

 

We look forward to supporting your business goals.

Manufacturing Medical Equipment in China: Why it’s a smarter strategy than you think – even now.

China is the “world’s factory,” a global manufacturing hub that produces the vast majority of electronics components used around the world. Those components power everything from smartwatches to cars to appliances, as well as critical medical equipment such as ventilators, ultrasound machines, hospital beds, and more. But with incredibly high tariffs imposed by the US on many of those goods – including medical equipment – is it worth it for manufacturers to stick with their operations in China?

The industry has been divided on that. You’ve probably seen your fair share of stories about major OEMs moving some of their manufacturing operations to other countries. This past spring, as production lines shut down due to COVID, it’s no surprise people were contemplating the benefits of decreasing their reliance on China.

However, does avoiding those tariffs warrant the huge effort it takes to relocate operations? After a long year and many tough decisions, the overwhelming answer has been…no. For most manufacturers, the advantages outweigh the 25% tariffs.

So what are the advantages of manufacturing medical equipment in China?

Advantage #1: Staying in China poses less risk than moving

With change comes risk: that’s a fact of life. Switching manufacturing partners, even within a region, has significant challenges. Relocating to a whole new country is even more time-consuming, expensive and risky, with a steep learning curve that involves extensive travel, multiple factory tours, work sessions, and more. And it’s a level of risk many aren’t willing to embrace.

According to Forbes, “Manufacturers are sticking with partners they know and trust, despite the tariffs. With restricted travel, de-risking new partners has been incredibly difficult, so most have opted to work with teams they know.”

In addition, China lived through COVID-19 for months before it impacted the rest of the world: that experience has enabled them to be at the forefront of developing strict virus controls. With those controls, the types of shutdowns that happened in the first months of 2020 are highly unlikely, and medical equipment companies will be able to count on continuity and supply chain dependability moving forward.

Advantage #2: A massive, highly-skilled labour force

China has the biggest labour force in the world, topping out at 783 million workers. Unlike countries with comparable populations, like India, they have been a manufacturing hub for 20 plus years, and have the depth and breadth of specialized skills required to build the premium-quality electronics needed for medical equipment.

Advantage #3: Low labour costs

Yes, labour costs in China have been creeping up since minimum wages were instituted in 1995, with jumps related to wage increases in 2010 and 2019 – and they are higher than countries like India or Vietnam. But they are still dramatically lower than in western countries. For example, in Guangdong, a key manufacturing region in China, minimum wage is approximately $2.15 an hour.

Keep in mind that with those marginally higher wages come skills and experience you won’t find in other regions, with greater speed and much more efficient lead times than other countries can provide.

Advantage #4: Quality of logistics and infrastructure

Companies can benefit significantly from China’s established manufacturing history. They have robust infrastructure in place to move everything from raw materials to finished products quickly and efficiently through the country and across international borders. 40% of China’s roads are national highways, and they have 2/3 of the world’s high-speed rail lines, spanning 290,000 km, with trains that can travel up to 250 km an hour. Add modern cities, world-class airports and marine ports to the mix, and you have a setup no other country can come close to.

According to Wharton Magazine, “China has arguably the best physical infrastructure outside the western world.”

Advantage #5: A robust domestic medical device market

The scale of the manufacturing China does for their own medical market is enormous, representing close to $100 billion in health care spending. Which means western companies have access to a market focused on quality and innovation – one they can leverage for their own production and expansion. This also means they can draw on the country’s robust manufacturing supply chain, including top-quality, cost-effective raw materials that can be used for local production.

Advantage #6: State-of-the-art manufacturing facilities

China has more FDA-registered medical manufacturing facilities (Class II and Class III) than any other country apart from the US. That may be why a number of large medical manufacturers,  including Roche and Johnson & Johnson (with Bayer and Novartis announcing upcoming plans), have moved not just production facilities to China, but also R&D operations.

The “Made in China” initiative is also increasing manufacturer confidence in the quality of Chinese goods. President Xi Jinping has committed to making the words “Made in China” synonymous not with cheap, low-quality goods, but with top-quality manufacturing, especially for complex products like medical electronics.

The big disadvantage: 25% tariffs have a huge impact on profitability

Thanks to trade wars between the US and China, tariffs have escalated to punitive levels. And not only do they include finished goods, but also metal alloys (including steel and aluminum) used in many medical devices. From this perspective, there’s no arguing that manufacturing in countries that haven’t had this tariff imposed on them is the cheaper option.

Not all medical items are subject to the tariff, however. There are a few exceptions, which include microwave ablation antennas, tube suspensions used to position X-ray equipment, and food allergen analyzers. Plus, medical device manufacturers can apply for individual exemptions, but that may not be easy: several big medtech firms have had their applications rejected.

As a workaround, some manufacturers have been routing Chinese-made goods through other countries, like Vietnam, adding “Made in Vietnam” labels to avoid the tariffs. We don’t recommend this tactic: both the US and Vietnam frown upon fraudulent labeling, and any companies found doing this are likely to face heavy fines.

Negotiations with the US Government over tariffs continue, and there is hope that with the incoming administration, the issue will be addressed in a way that’s favourable to the industry. However, the outcome of the new Presidency remains to be seen: political analysts predict that Biden is likely to be a little softer with China than Trump has been. But despite some initially promising statements, there’s little indication he will lift the current tariffs.

Ultimately, the talk we’ve been hearing about restructuring supply chains has ended up being mostly that: talk. Despite punitive tariffs and COVID complications, manufacturers have overwhelmingly chosen to stay put. They’re sticking with trusted partners, a skilled workforce, sophisticated manufacturing capabilities, and low labour costs, which for most, outweigh the tariffs.

Not sure if manufacturing your medical equipment in China is the right choice for your company?

If you’re thinking about moving your operations out of China, talk to us about factors to consider. We can help you weigh the pros and cons to see what works best for your operation.