Unpacking the Costs: Why PCB Assembly is So Expensive

PCB Assembly

Printed Circuit Boards (PCBs) are the most crucial parts of most present day electronic devices that helps in mounting and interconnecting the parts in an efficient manner through connection paths on them. The production of PCBs, however, can be an expensive process, making various many who use these important components f reckon and reconsider. The following article has the purpose of breaking down the several factors that playing to the high cost of the manufacture of PCB assembly to have an in-depth analysis on its complicated processes and hindrances.

What is PCB Assembly?

PCB assembly is a process that is designed in a layered manner and as such, it is very complex and details involving expertise, professionalism and capital intensive in that it requires the use of different tools, capricious labor force and shoddy material. The long procedure that is needed to make the product, the accuracy that is needed in making the product, and the many precautions that need to be taken to ensure quality products, all play a role in the price. It is therefore important that anyone involved in the production or acquisition of the electronic goods to have adequate knowledge on the factors.

The PCB Manufacturing Process

These are the printed circuit board manufacturing process:

Design and Prototyping

Designing a PCB is the first step that is followed when constructing one. Layout designers and engineers employ complicated computer aided design programs to produce layouts which will fulfill the board’s requirements. This phase comes with iterations and modelling to come up with a design that will perform optimally and is also easy to manufacture.

After this, a prototype of the agreed upon design is created. One of the most significant stages in the design process is prototyping and it entails putting the design to reality in order to test it. It frequently necessitates the employment of certain instruments and substances that are rather costly to purchase and apply. In prototyping, one realizes that some problems do exist with the design, and these have to be adjusted, which pushes the costs even higher.

Material Costs

Cost of the materials used in the manufacture of PCBs is also another important aspect that defines its cost. The materials used for manufacturing the PCBs become critical, and for this reason, the best substrates, copper foils, and laminates are used to ensure that proper Circuit boards that can withstand the test of time are developed. These cost may differ on things such as density, type, and quality of the material suppliers for the above materials. Also, the price of some of the parts used in the manufacturing process, such as copper, tends to be affected by market forces hence the price of manufacturing PCBs fluctuates.

Manufacturing Techniques

PCBs are made through processes that include but are not limited to etching, driling and plating. All of these processes involve accurate machinery and strict conditions to meet the efficiency and quality. Such equipment’s cost items include the initial cost of installation and also the recurrent charges hence making up a large percentage of the expense.

Component Costs

These are the component costs:

Sourcing Components

The components that are attached to a PCB can also be a bit expensive, by the kind of component, its functions integrated in the circuit, its rarity, among other factors. It may require the engagement of various supplier’s interactions with them and determination of the cost of the component and verification of their admissibility to the company’s quality standards. Since electronics has a supply chain across the world, exchange rates, tariffs, and events in geopolitical regions can affect the costs of its parts.

Specialized Components

Certain electronics may need components that cannot be bought on the counter, they may be specialty or custom. These components can turn out to be much more costly due to specific requirement of integrating them and relatively few suppliers who are in a position to make them. Moreover custom components are costly and generally take more time to get sourced and manufactured for the project.

Labor Costs

These are the labor costs:

Skilled Labor

The actual process of assembling PCBs calls for operational technicians and engineer who work on soldering, inspection and testing. What is essential to the success of these processes is that they are highly precise; however, the labor is expensive. Currently, the availability of skilled personnel, especially in the growing regions, is hard to come by and hence attract high remuneration making up the overall cost of PCB assembly.

As for the typical factors influencing the manufacturing costs, one must note that in an attempt to increase productivity and minimize the labor expenses, most manufacturers employ automated assembly lines. The major disadvantage of the use of automation in assembly is that although considerable time will be saved due to automation the initial cost of the machines plus the cost of maintenance for the machines is very expensive . Secondly, mechanized systems need trained manpower for programmers, operations, and maintenance of the equipment’s which in turn augment the labor expenses.

Quality Control and Testing

Quality Control and Testing:

Stringent Quality Standards

This implies the fact that to produce a reliable and high performing PCB, there have to be serious measures put in place in the quality control aspect. Companies are compelled to stick to standard requirements for manufacturing, inspecting, and testing goods that include IPC-A-610 and ISO 9001. The ability to meet such standards entails the use of equipment and workforce with relevant expertise and skills, a fact that tends to influence cost.

Testing Procedures

PCBs are subjected to several tests and their results are used to ensure that they perform their intended functions as required. The tests categorized under this are ICT which stands for in-circuit testing, functional testing and environmental stress testing. All of these tests involve the use of specific equipment and laboratory and/or testing facilities, and trained personnel to read the results and make the necessary amendments. Equipment cost and time for testing are the other critical factors that define the cost of PCB assembly since more time and effort are needed in testing a given device.

Regulatory Compliance

Environmental Regulations

There are numerous environmental standards that the manufacturers are supposed to adhere to in an effort to minimize the effects of the gadgets on the environment. Such regulations include; prohibition and control of use of hazardous material (RoHS), control and disposal of electrical and electronic equipment (WEEE), control of energy consumption (Energy Star). Adherence to these regulations has an added step of testing, certification, and documentations, all of which are an added cost in PCB assembly.

Industry Certifications

UL and CE are two vital certification marks of the industry, which are useful to verify the safety and performance of PCBs. The certification process also has to go through certain tests and inspection also after certification the company has to go for regular audit. These costs of procuring and sustaining such certifications are charged to consumers which in return take a toll on the expenses involved in PCB assembly.

Supply Chain Challenges

Global Supply Chain

The electronics supply chain is global, meaning that there are numerous factors which influence costs and can present complications. Any problem related to the delivery of these components, change in the exchange rates at which these components are bought, or even conflicts can be a major issue in the availability and cost of these components. To supply those items, manufacturers have to face those challenges and sometimes buy items using more money than they would usually pay on the market.

Inventory Management

Implementation of inventory control is one of the best ways of managing costs while at the same time promoting timely production. Nevertheless, the storage of the components and the material needed for production employ a number of planning and forecasting techniques. Overstock can be also dangerous because can cause a problem with accumulated quantity of the stocks, and undersupply can affect production because of the need of urgent delivery. All these factors of course complicate and increase the cost of the PCB assembly process.

Customization and Low Volume Production

Custom PCBs

Most consumers have an individual set of requirements of their PCBs and hence the need for a different production. Customization requires more efforts or new designs, extraordinary materials, and different procedures of production. Custom PCBs are typically more expensive than standard PCBs because they special order products are always complicated and different from each other.

Low Volume Production

Even though low-volume production can also possibly take advantage of the economies of scale principle, it is more costly by default. Fixed cost such as manufacturing tools, manufacturing programs, and manufacturing calibration are incurred to realize the manufacturing process and these have to be shared among few units and hence the per unit cost is higher. Also, because low volume production is done in small quantity, there is more handling of products than in high volume production, hence costs rise due to little application of automation.

Technological Advancements

Advanced Technologies

The electronics industry progress at a very fast rate, especially in the area of technology, this forces one to keep on investing on new equipment and processing. The manufacturing industry is a capital-intensive business mainly because firms have to constantly invest in equipment upgrades to meet new technologies that are coming to the market for instance new and improved SMT & through-hole assembly processes. These are additional costs in acquiring state-of-the-art equipment and training of manpower which go into the formulation of the cost of PCB assembly.

Research and Development

As with any electronics industry, PCB manufacturers’ R&D investment is high and they make sure that its alternatives are diversified so as to meet the needs of their customers. R&D activities concentrate on the optimization of process technology, the creation of new materials, and increasing the dependability and efficiency of PCBs. It is noteworthy that the R&D expenses imply rather high costs and can be defined as a major factor of the final product price.


PCB assembly is relatively expensive because of various causes that are encountered throughout the assembly process to ensure the functionality of the board. Right from the conception of a new product and the creation of a prototype, right up to the time when and how the materials and components that are to be used are procured, a lot of money is spent on equipments, manpower, and experience. Policies, standards, and guidelines for quality, safety, health, social, environmental, and legal requirements also contribute to the overall cost of its products and services besides the issues of supply chain management.

It is crucial to comprehend these aspects as it offers the required background knowledge regarding the factors that influence the price of PCB manufacturing and assembly to any subject managing an electronics firm or a segment of it. Thus, PCB manufacturing complexity serves as a valuable guide for stakeholders to guide the design of their circuits and cooperate with manufacturers to reach economical and efficient solutions for their electronic products.

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