"You can't put the entire production of a dedicated item like PCBs in China."

Synésio Batista da Costa, president of the Brazilian Association of Printed Circuits, Board Assembly, Membrane Keyboards and Electronic Components (Abraci), talks in this interview with the Ipesi Portal about the efforts of the Brazilian printed circuit boards (PCBs) industry to meet the demand of the medical/hospital segment in the short term, about the situation of the market today and about the prospects that are opening up with the growing appreciation of the dollar against the real and the logistical problems generated by the coronavirus pandemic.

PORTAL IPESI - How is the Brazilian printed circuit board market?

SYNÉSIO BATISTA DA COSTA - As this is a made-to-order product, there is still a reasonable order backlog in the factories, but we are still assessing the scenario for the coming months.

PORTAL IPESI - What is the domestic market share of printed circuit board production?

COSTA - The share of the domestic product had been falling year on year due to the prices charged by the Chinese. We currently meet around 10% of local demand.

PORTAL IPESI - According to some, the rise in the dollar against the real, combined with logistical difficulties due to the coronavirus pandemic, could boost Brazilian production. How do you analyze this issue?

COSTA - That's true. The exchange rate of the dollar has a big influence on the client's decision, especially at times of instability like the present. In any case, the devaluation of the Chinese currency against the dollar is still much greater than ours.

PORTAL IPESI - On the other hand, almost half (47%) of the Brazilian electronics industry, according to an Abinee survey, operates with partial or total stoppage of local manufacturing. How is Brazilian printed circuit board production affected?

COSTA - At the moment there is a high demand for signs in the medical/hospital segment and most of our members are committed to meeting this demand with very short deadlines. Other segments will adjust to their reality.

PORTAL IPESI - In the longer term, do you believe that the Brazilian electronics industry will seek to diversify its supply chain and buy more domestically produced printed circuit boards? Or, once the pandemic is over, will everything go back to the way it was before?

COSTA - Everything basically depends on the exchange rate in the first place, tax reforms, especially social security reforms, and also the lesson that everyone is learning... You can't put all the production of a dedicated item like PCBs in China. You have to have a national supplier.

PORTAL IPESI - How is Abraci helping companies in the sector to overcome this difficult period of the pandemic?

COSTA - The importance of having PCB manufacturers in Brazil is clearer than ever. As I said earlier, we are supplying manufacturers of medical equipment, such as respirators, for example. We also serve customers who were taken by surprise due to the stoppage of Chinese factories and logistics problems. That's why we insist on strengthening the production chain. Price is important, but it's not everything. How much does a factory shutdown cost due to a lack of PCBs?

PORTAL IPESI - What actions should Abraci take to help a possible resumption of local production of printed circuit boards?

COSTA - Our members are always keeping up to date technologically. Today we produce plates with a high degree of complexity, and some have even increased their production capacity, with a view to serving larger volume segments even before this pandemic. We believe that our members will be able to meet this demand (text: Franco Tanio/photo courtesy).

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