It has been two years since Pres. Joe Biden issued Presidential Determination 2023-06, which invoked the Defense Production Act (DPA) to stimulate U.S. investment in the manufacture of printed circuit boards (PCBs) and related technologies. The policy identified a critical technology shortfall that, if left unaddressed, would “severely impair national defense” and undermine the American warfighter.
In issuing the determination, Biden built upon the comprehensive assessment of the defense industrial base initiated by Pres. Donald Trump under Executive Order 13806. That report singled out the domestic PCB industrial base as “aging, shrinking, and failing to maintain the state of the art,” noting that “some advanced high-density interconnect products [are] simply not producible in the U.S.”
Unfortunately, too little has changed since the Biden declaration. The United States continues to marginalize investments in the PCB industry and related technologies that are crucial to U.S. military superiority and mission-critical functions carried out by warfighters. The lack of U.S. Department of Defense (DoD) participation in a sector that is vital to national security means the vulnerabilities that have plagued defense electronics for many years still persist today.
Indeed, the U.S. PCB industry continues to struggle for survival, creating alarming vulnerabilities for the defense industrial base.
The Critical Oversight in U.S. Technology Strategy
The U.S. Government has devoted immense resources to securing other “shiny object” technologies – most notably semiconductors and AI – while largely neglecting the foundational elements of electronic systems, including PCBs and PCB assemblies.
We simply can’t match our adversaries, let alone keep an advantage, if U.S. PCB suppliers can’t keep up with the pace of progress. Defense manufacturers increasingly report they must implement costly and complex workarounds to use onshore sources of PCBs, or they must pursue waivers to buy offshore.
This was not always the case. Decades ago, the DoD played a direct role in steering and spurring electronics innovation. The annual Electronics Manufacturing Seminar at China Lake – now discontinued – exemplified the kind of industry-government collaboration that is needed to address glaring concerns in the defense electronics industrial base.
However, in the 1990s, the DoD distanced itself from manufacturing. Many defense primes shifted production offshore to take advantage of lower-cost alternatives. The U.S. PCB industry – formerly the home of over 2,000 manufacturers commanding 30% of global production – dwindled to fewer than 150 companies with just a 4% market share.
While the U.S. stepped back, countries in Asia stepped up. Today, more than 90% of PCBs produced globally are fabricated in Asia, and roughly one-half are produced in China. The lack of a domestic demand driver has negatively impacted the ability of U.S. PCB companies to invest in research and development, facilities, and workers.
And now, not only do U.S. companies lack many of the most cutting-edge capabilities in PCB fabrication; they also largely lack manufacturing processes powered by AI and automation, which could improve yields and cut costs.
Despite some relevant efforts by unsung heroes in DoD, the Pentagon’s lack of focus on the PCB sector has led to strategic blind spots. Recent investments in U.S. companies under DPA Title III are a good start, but the risk-averse defense industry won’t adopt new sources until they are proven to be reliable, scalable, and cost-effective. Likewise, the recent bankruptcy of the sole North American supplier of electro-deposited copper is another blind spot resulting from the DoD’s disengagement.
Two more problem areas are the continuing reliance on lead-based solders and unresolved reliability concerns with microvias, tiny interconnection points in PCBs.
How to Rebuild the PCB Industry
To strengthen the defense electronics industrial base, including PCBs and PCB assemblies, the U.S. Government must re-engage with domestic partners in electronics design and manufacturing.
- Inject Capital into the PCB Industry
Given the risks of over-reliance on non-U.S. electronics manufacturing, the DoD must expand its support for the domestic PCB industry. Congress has proposed $45 million in FY25 under DPA Title III to support PCB manufacturers. The Trump administration should confirm and increase these investments over the next four years. In addition, the Office of Industrial Policy should allocate funding to PCB workforce development, an area currently shouldered entirely by industry without DoD support. - Rebuild Direct Industry Connections
The Defense Electronics Consortium (DEC), established by the DoD’s Industrial Base Analysis and Sustainment office during President Trump’s first term, has become a vital forum for industry-government dialogue. The DoD should better leverage the DEC as it remains the most effective mechanism for engaging the defense electronics supply chain on urgent issues. - Strengthen Supply Chain Assurance
The DoD worked with industry to establish IPC-1791, a “trusted supplier” standard for PCB and electronics assembly sourcing. While more than three dozen U.S. manufacturers now comply with IPC-1791 in the hope that it will drive demand for their businesses, its adoption remains weak despite congressional directives to mandate assurance standards. The DoD should enforce these standards to ensure both reliability and resilience of defense electronics.
Rebuilding the PCB industry will require concerted and sustained action, not just occasional declarations.
President Trump, with his emphasis on rebuilding domestic manufacturing and creating the most potent military possible, is well positioned to lead the way forward.
But without such action, America’s ability to manufacture the electronics that power its economy and defense systems will continue to deteriorate—leaving the nation increasingly vulnerable to foreign suppliers and supply chain disruptions.
