U.S. Government Supports Independent Production
Wonderful PCB Express, the US government officially recognized the importance of domestic PCBA manufacturing in its report on February 24.
The bill requires the U.S. Secretary of Defense to support and encourage domestic PCB manufacturing, prevent risks posed by PCBs imported from China, Russia, Iran, and North Korea, and prevent the U.S. military from using PCBs made in those countries. The bill also requires the Treasury Department to establish a 10-year electronic supply chain fund to strengthen the manufacturing of PCBs and other electronic products in the United States and improve the security of the electronic product supply chain. At present, the proposal has been submitted to the Senate Armed Services Committee. The bill also focuses on protecting the PCB supply chain and incentivizing modernization efforts, primarily aimed at growing U.S. PCB manufacturing.
On May 6, bipartisan legislation finally announced the policy shift. The new legislation, called the Supporting the U.S. Printed Circuit Board Act of 2022, aims to encourage private investment in multiple subsidies and incentives to support the U.S. PCB industry.
“GPU Tax”
The Office of the United States Trade Representative (USTR) decided to continue to suspend the imposition of tariffs on 352 products imported from China under Section 301 for a period of 9 months until September 30, 2023.
One of the important tax objects is PCB, especially for graphics cards. The tax rate is as high as 25%, which is called “graphics card tax”. Graphics card tax includes notebooks, motherboards, etc.
In fact, the “graphics card tax” has long been planned. This tax will hit the electronics manufacturing industry in mainland China, including PCBs, and further transmit it to the supply chain of electronic components including chips.
The policy was welcomed by the U.S. business community, with some companies saying that “while this is an important step in controlling inflation, the government can still do a lot to help the U.S. economy.”
Since PCB manufacturing and electronic foundry are mainly concentrated in mainland China and Taiwan, China, if USTR starts to levy taxes, the price of graphics cards in the US market will inevitably rise collectively, and
another direct victim is the US consumers.
Wonderful PCB provides one-stop PCB assembly service. This is guaranteed through a product specification and quality control that is far more stringent than other suppliers, and ensures that the product delivers what it promises.
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