Europe’s declining PCB and EMS production threatens security
The German Electrical and Electronic Manufacturers' Association (ZVEI) warns that the ongoing decline in PCB and electronics manufacturing services (EMS) in Europe threatens both security and technological sovereignty.
According to ZVEI, only 2% of the world’s PCBs are currently produced in Europe, while in electronics manufacturing, Europe currently accounts for only 10% of the global market volume. If Europe can no longer rely on their own capacities and expertise, this entails considerable risks: deliveries could be withheld or even manipulated, argues the association.
"We need a reliable de-risking strategy that secures our European interests through targeted measures," demands Wolfgang Weber, Chairman of the ZVEI Management Board, in a press release.
As Zvei points out, increasing dependence on a few suppliers from Asia, in the current geopolitical context, is associated with risks that threaten European security. In the worst-case scenario, this could lead to manipulation of technical infrastructures and defence technology. This could be achieved with little effort at any stage of production, for example, through "hardware Trojans" or hidden backdoors in electronic systems – their detection, in contrast, would be extremely difficult.
ZVEI also notes that US tariffs on Chinese products may lead to an influx of low-cost PCBs into the European market, further undermining local manufacturers. The association advocates for stronger trade and industrial policies, including anti-subsidy and anti-dumping measures where appropriate.
The association also highlights what it describes as a structural imbalance: while European PCB manufacturers must import base materials subject to tariffs, finished PCBs from China are exempt from such duties. “This is absurd and cannot continue because it creates a nonsensical competitive disadvantage for European production,” Weber said.
Furthermore, the association calls for industrial policy measures to strengthen competitiveness in PCB and EMS production. These include targeted support through the European Chips Act, particularly for downstream manufacturing steps such as PCB manufacturing, packaging, advanced packaging, and also EMS.
The urgency of these concerns is echoed in the industry and will be central to discussions at Evertiq Expo Berlin on June 5, 2025. Several sessions during the event will explore Europe's weakening position in the electronics supply chain and propose concrete measures for reversing the trend. Dirk Stans, Managing Partner at Eurocircuits, will outline actionable policy proposals aimed at rebuilding industrial resilience. Dieter G. Weiss of in4ma and Christoph Solka of IPC Electronics Europe will present new data on the European EMS and PCB sector. A panel discussion will also address the broader question of whether Europe can regain control over its industrial future, as competition and strategic dependencies continue to intensify.
