Major barriers in the PCBA industry
(1) Entering the qualification barrier of the large enterprise supply chain:
The PCBA board is the most important part of the electronic equipment, and its stable quality is crucial for the normal functioning of the terminal electronic equipment. Therefore, if a manufacturer wants to become a supplier of the large enterprise, in addition to meeting industry standards, it must pass a strict supplier qualification and have at least one year's qualifications. In the process of certification, they will impose strict requirements on suppliers' production processes, quality management, work environment and even business conditions. Generally, they need to be rectified several times before they can pass. Qualification is recognized and can be officially become a supplier after a relatively small period of supply testing. Once the manufacturer has passed the final certification of the supplier qualification, it will be included in the global supply chain of large international brands and can accept the procurement of its global production base. And once the partnership is established, in order to ensure product quality and maintain the stability of supply, these large international companies usually do not easily change suppliers, this strict supplier qualification, and stable customer relationships based on long-term cooperation, Formed a strong qualification barrier for enterprises intending to enter the industry.
(2) Capital and production barriers:
In addition to the need of investing expensive SMT equipment and testing equipment, enterprises need to invest a large amount of liquidity to improve the material procurement system. If the production company only collects low processing fees through the patch, which development and profit will be greatly squeezed. At the same time, PCBA serves mainly multinational corporations, and multinational corporations tend to have larger business scales. This request that PCBA enterprises, which are an important part of their global supply chain, must also equipped large production scale. Only when the production scale is achieved can they be effectively reduced procurement costs and production costs.
Baiqiancheng company has been in the pcba industry for 16 years and we are certificated with IATF16949 ISO13485, ISO9001, ISO14001.Also we equiped with SPI,AOI ,X-Ray,ICT test machine.our factory is 8000 squaremeter and we have 426 employees. Some qualified suppliers of GE, Wal mart, IKEA etc. Chose us, chose quality!
