Fire at French PCB Factory Highlights Europe's Electronics Vulnerabilities
Paris, Wednesday, 29 January 2025.
A fire at a key PCB factory in France underscores Europe’s reliance on Asian suppliers, revealing critical supply chain vulnerabilities and prompting calls for increased investment in regional electronics manufacturing.
Critical Incident Details
The fire that struck CSI Sud Ouest’s facility on January 24, 2025 [4] has paralyzed operations at one of France’s strategic electronics manufacturers. The incident has sent shockwaves through Europe’s aerospace and defense sectors, as CSI Sud Ouest serves as a crucial supplier of printed circuit boards (PCBs) for these critical industries [1]. The timing is particularly concerning, as Europe’s electronics manufacturing sector already faces significant challenges with regional production capacity falling to historic lows [1].
Declining European Manufacturing Base
The incident highlights a troubling trend in European electronics manufacturing. Over the past 25 years, Europe’s share in global PCB production has plummeted from over 20% to a mere 2% [1]. This decline is further illustrated by the closure of more than 140 PCB companies across Europe in the last 15 years [1]. Currently, China and other Asian countries fulfill over 82% of European PCB demand [1], creating a dangerous dependency on distant supply chains.
Immediate Industry Response
The European electronics sector has demonstrated solidarity in response to the crisis, with competing PCB manufacturers stepping in to support affected clients [1]. However, industry experts warn that this stopgap measure doesn’t address the underlying structural vulnerabilities. As stated by Eric De Ponthaud, CEO of CSI Sud Ouest, ‘The fire at CSI is a wake-up call… We cannot afford to let this vital sector weaken’ [1].
Future Outlook and Policy Implications
The incident coincides with the European Commission’s publication of the Competitiveness Compass [2], which aims to address industrial vulnerabilities. Without intervention, projections indicate Europe’s share in critical electronics sectors will further decline to 1.7% by 2035 [1]. Industry leaders are calling for the establishment of a Strategic Electronics Manufacturing Act (SEMA) and a comprehensive Electronics Manufacturing Strategy [1] to revitalize domestic production capabilities and reduce dependency on Asian suppliers.