Since the 12th five-year plan has been formulated, China has actively carried out various industries in the mainland to save the country, adjust and upgrade its constitution, including the PCB industry.The laws and regulations promulgated in recent years include: labor contract law, new enterprise income tax law, electroplating industry clean production standard..Etc., it has a considerable impact on the operating environment of PCB manufacturers.
Related policies of PCB industry in China
Our PCB manufacturer, because the local production of export-oriented on PCB, export denominated currency to dollars, mainly as for other denominated currency don’t use the proportion of less, so on the foreign exchange risk aversion through currency don’t change the space not much, more manufacturers adopt contract for the contract rate, or a certain degree of exchange rate adjustment space as the basis of bargaining again.
Officials on the mainland, under the manipulation of the yuan against the dollar since 1995, the change of exchange rate steady, but since 2005 because of rising currency, the amount of each manufacturer after receiving the dollars into RMB will be reduced, in under the various manufacturers export costs will increase, export prices, bad PCB makes foreign investment because the pursuit of cost reduction, and unable to achieve their purpose.
At the current commercial production in China the cost structure of PCB, the PCB GeChang cost structure about labor costs and a 10% 50%, material cost, manufacturing cost (40%), under the assumption that the appreciation of the renminbi 10% of cases, cost will increase 2% ~ 6%.
Environmental protection law
In the case of PCB manufacturers, the new entry into a factory and the situation of the local factory operators are different.The new entrants have applied for a factory, and the application form contains the electroplating term, which means that the factory will not be allowed to set up the factory, including the current image of the board manufacturer.His presence is wastewater quantity problem facing to the local government in wastewater and recycled do double control, if the amount has faced with vendors, certainly will be reduced or invest in more expensive environmental protection equipment to conform to the standards.
The wave of environmental law makes individual manufacturers find alternative early production base, including southeast Asia and mainland interior smell, at present there are still expanding factory space, generally also will run out in 2009 its quota, how should make future PCB factory in law limits of factory space, and much attention.
Syria on policies and laws on the cost of the impact of PCB manufacturers are as follows: if based on net sales, the current PCB manufacturer factories in the mainland, the average gross margin is about 15%, up and down the appreciation of the renminbi will lead to the overall increase of 10%, the implementation of the labor contract law will push up labor costs by 10%, rate of change is affect the level of net profit.Although in recent years, PCB has repeatedly lowered pressure on prices, but the PCB factory and can be borrowed by the system manufacturer to order new products, as one of the ways of product prices, so under the condition of constant sales revenue, the overall cost will be increased by 9.35, and business interests will reduce 9.96.If the income tax is not calculated and the income tax rate is changed, then the production of PCB boards in the mainland will be subject to the situation of the profits and losses.
In addition to the specific measurement of the impact on the cost of the statutory policies, the most significant impact is the failure to measure the part of the statute.Especially in environmental protection law, for the most, eastern and southern China, as long as you apply for a new establishment application in electroplating word that is rejected, manufacturers to build a factory, if want to enlarge the factory, and no cannot expand water lines, even in a disguised form for higher water circulation rate, production purpose to fulfill the requirements of a disguised form the manufacturer.Such a practice is the most difficult part of the PCB manufacturers in mainland China.
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