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FPC Cost Analysis and Reduction Strategies​ ​

Mar 22,2025

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Shenzhen Huaruixin Electronics Co., Ltd. is a professional manufacturer specializing in the design and production of FPC (Flexible Printed Circuit), PCB (Printed Circuit Board), and Rigid - Flex Printed Boards. In the highly competitive electronics manufacturing industry, understanding the cost structure of FPC and implementing effective cost - reduction strategies are crucial for maintaining a competitive edge. This blog post will delve into the cost composition of FPC, explore ways to reduce costs, and specifically focus on manufacturing process improvements for cost reduction.

Cost Composition of FPC


1. Raw Materials


Base Materials: The choice of base materials significantly impacts the cost of FPC. Polyimide (PI) is a commonly used high - performance base material due to its excellent heat resistance, chemical resistance, and electrical properties. However, it comes at a relatively high cost. In contrast, polyester (PET) is a more cost - effective alternative, although it has slightly inferior performance compared to PI.


Copper Foil: The thickness, purity, and quality of copper foil play a role in determining the cost. Thicker and higher - purity copper foils, which are required for better electrical conductivity and reliability, are more expensive.

Cover Layers and Reinforcement Materials: These materials are used to protect the circuit lines and enhance the mechanical strength of FPC. Different types of cover layers and reinforcement materials vary in cost according to their properties and manufacturing processes.


2. Design Complexity


Circuit Density: Higher circuit density means more intricate manufacturing processes. Producing fine - line FPCs often requires advanced technologies such as laser etching, which increases production costs.

Number of Layers: Multilayer FPCs involve more complex manufacturing steps, including multiple lamination, alignment, and etching processes. As the number of layers increases, so does the cost.

Special Design Requirements: Features like blind vias, buried vias, impedance control, and combinations of flexible and rigid areas add to the manufacturing complexity and cost.


3. Manufacturing Processes


Production Equipment: Investing in advanced production equipment is essential for high - quality FPC manufacturing. However, the purchase and maintenance costs of such equipment are high and are factored into the product cost.

Process Difficulty: Specialized processes such as high - precision pattern transfer, micro - via drilling, and surface treatment require skilled labor and strict process control, increasing production costs.

Production Volume: Economies of scale come into play here. Larger production volumes can reduce unit costs through increased production efficiency, lower raw material procurement costs, and better utilization of fixed costs.


4. Surface Treatment


Gold Plating: Gold plating is used to improve electrical conductivity, corrosion resistance, and solderability. Since gold is a precious metal, the cost of gold plating increases with the thickness and area of plating.

Other Surface Treatments: Options like silver plating and tin plating also vary in cost depending on the material and process requirements. Silver plating offers better electrical conductivity than tin plating but is more expensive.


5. Quality Requirements


Electrical Performance: Higher - performance requirements, such as low resistance and precise impedance control, demand more advanced testing equipment and techniques during production, raising the cost.

Reliability: FPCs used in applications with high - reliability requirements, such as aerospace and medical devices, need to undergo rigorous environmental and life - cycle testing, adding to the overall cost.

Yield Rate: Ensuring a high yield rate requires strict quality control throughout the production process, including multiple inspections of raw materials, semi - finished products, and finished products, which increases costs.


6. Transportation and Packaging


Transportation Distance: Longer transportation distances increase shipping costs, especially for FPCs that require special handling conditions such as moisture - proof and anti - static packaging.

Packaging Materials: Appropriate packaging materials, such as anti - static bags, blister trays, and cartons, are necessary to protect FPCs during transportation and storage. The cost of these packaging materials also contributes to the overall cost of FPC.


Strategies to Reduce FPC Costs


1. Design Optimization


Simplify Circuit Design: Minimize circuit density and avoid unnecessary vias and complex wiring structures while still meeting electrical performance requirements. This reduces manufacturing difficulty and cost.

Rationalize Layer Selection: Choose the minimum number of layers required for the application. If a single - layer or double - layer FPC can fulfill the function, avoid using a multilayer structure.

Reduce Special Design Features: Minimize the use of special processes like blind vias and buried vias, as well as strict impedance control and special shape requirements, to lower manufacturing complexity and cost.


2. Raw Material Procurement


Select Cost - effective Materials: Based on the performance requirements of FPC, choose raw materials with high cost - performance ratios. For example, consider using PET substrates instead of PI substrates in applications with lower heat - resistance requirements.

Optimize Copper Foil Thickness: Select an appropriate copper foil thickness that meets electrical performance requirements without over - specifying, thereby reducing material costs.

Centralized Procurement: Establish long - term and stable partnerships with suppliers. Centralize procurement, sign annual contracts, and consider group purchasing with other companies to increase purchasing volume and bargaining power, obtaining more favorable prices and payment terms.


3. Manufacturing Process Improvement


Increase Production Efficiency: Optimize the production process by introducing advanced production equipment and automated production lines. For example, use automatic laminators and exposure machines to improve the degree of automation, reduce labor costs, and shorten the production cycle.

Enhance Process Capability: Strengthen employee training to improve process control and operation skills, reducing the number of defective products and rework due to process errors. Encourage technological innovation to develop new manufacturing processes that can lower production costs.

Implement Lean Manufacturing: Adopt lean manufacturing concepts to eliminate waste in the production process, such as reducing inventory, shortening the production cycle, and optimizing equipment layout, thereby reducing production costs.


4. Surface Treatment Optimization


Choose Appropriate Surface Treatment: Select the most suitable surface treatment process based on the actual application requirements of FPC. If corrosion resistance and solderability requirements are not extremely high, consider using lower - cost tin - plating instead of gold - plating.


Control Surface Treatment Thickness: Ensure that the thickness of the surface treatment layer meets performance requirements without over - plating, reducing material costs.


5. Quality Control


Strengthen Process Control: Establish a comprehensive quality management system and strengthen quality control at all stages, from raw material procurement to production and finished product inspection. Timely identify and resolve quality issues to avoid rework and scrap, reducing costs.


Optimize Testing Methods: Use advanced testing equipment and techniques, such as automatic optical inspection (AOI) instead of manual visual inspection, to improve testing efficiency and accuracy, reducing testing costs.


6. Supply Chain Management


Optimize Supplier Selection: In addition to price, comprehensively evaluate suppliers in terms of product quality, delivery time, and after - sales service. Choose high - quality suppliers and establish long - term and stable cooperative relationships to ensure the stable supply of raw materials and product quality.

Strengthen Inventory Management: Apply advanced inventory management methods, such as the Economic Order Quantity (EOQ) model and ABC classification method, to rationally control raw material and finished product inventory, reducing inventory capital occupation and inventory backlog risks.


7. Transportation and Packaging


Optimize Packaging Design: Ensure the safe transportation of FPC products while optimizing packaging design. Use lower - cost packaging materials, such as ordinary cartons instead of customized high - end packaging. Reasonably plan packaging dimensions and methods to improve transportation space utilization.


Select Appropriate Transportation Methods: Based on order quantity, delivery time, and transportation distance, choose the most suitable transportation method. For small - batch and urgent orders, express delivery may be appropriate; for large - batch orders, consider more cost - effective methods such as logistics lines or railway transportation.

Additional Manufacturing Process Improvement Methods for Cost Reduction at Shenzhen Huaruixin Electronics Co., Ltd.


1. Plate - making Process Improvement


Adopt Digital Plate - making Technology: Traditional plate - making processes often involve more manual operations and complex procedures, which are prone to errors and have lower efficiency. Digital plate - making technologies such as Laser - Direct - Imaging (LDI) can improve plate - making accuracy and efficiency, reduce the reject rate caused by plate - making errors, shorten the plate - making time, and thus lower production costs.

Optimize Film Production: Films are important tools in the FPC plate - making process. Optimizing the film production process can reduce costs. For example, by accurately controlling the exposure and development parameters of the film, improve the quality and service life of the film, and reduce the frequency of film replacement and material waste.


2. Etching Process Enhancement


Use Advanced Etching Equipment and Processes: Select etching equipment with high - precision etching capabilities, which can more accurately control the depth and range of etching, reduce line deviation and short - circuit problems, and improve product quality and yield. At the same time, some new etching processes, such as plasma etching, have higher etching efficiency and selectivity, which can improve product performance while reducing costs.

Recycle and Reuse Etching Solution: The etching solution used in the etching process is relatively costly. Recycling and regenerating the etching solution for reuse can significantly reduce production costs. By using specialized etching solution recycling equipment, separate and recover copper ions in the etching solution, and add an appropriate amount of new solution for continued use in the etching process.


3. Lamination Process Improvement


Optimize Lamination Parameters: Precisely control parameters such as temperature, pressure, and time during the lamination process to ensure tight and uniform bonding between layers, reducing defects such as bubbles and delamination. Through experiments and data analysis, find the best combination of lamination parameters to improve lamination quality and efficiency, and reduce rework and scrap rates due to poor lamination.


Explore New Lamination Materials: Research and use some new lamination materials, such as adhesives with better fluidity and adhesion, which can achieve good lamination effects at lower pressures and temperatures, thereby reducing energy consumption and costs in the lamination process. In addition, new materials may also have higher reliability and aging resistance, which helps to improve the overall quality and service life of FPC.


4. Introduction of Automated Production Equipment


Robot - based Automated Production Lines: Introduce robot - based automated production lines in various processes of FPC manufacturing, such as component insertion, soldering, and inspection. Robots can achieve high - precision and high - efficiency operations, reducing errors and instability caused by manual operations, improving production efficiency and product quality. Although the initial investment in automated equipment is relatively large, in the long run, it can reduce overall costs by increasing production efficiency, reducing labor costs, and decreasing the reject rate.


Automated Inspection Equipment: Equip automated inspection equipment such as on - line Automatic Optical Inspection (AOI) and X - ray inspection equipment. These devices can monitor product quality in real - time during the production process, promptly detect defects and take measures, preventing defective products from flowing into the next process and reducing rework and scrap costs. At the same time, automated inspection equipment has fast inspection speeds and high accuracy, which can improve inspection efficiency and reduce manual inspection costs.


5. Process Innovation and Collaboration


Internal Innovation: The company should increase R & D investment and encourage technical personnel to carry out process innovation research. Develop new manufacturing processes and methods to improve production efficiency and reduce costs. For example, research new circuit forming processes and surface treatment technologies to gain a competitive edge and cost - reduction space through technological innovation.


Industry - University - Research Collaboration: Collaborate with universities and research institutions to jointly conduct technological research and process improvement. Universities and research institutions have rich scientific research resources and professional technical talents, which can provide new technical ideas and solutions for the company. Through industry - university - research collaboration, the company can quickly transform scientific research achievements into actual productivity, optimize processes, and reduce costs.


We at Shenzhen Huaruixin Electronics Co., Ltd. are committed to continuous improvement in cost management and manufacturing processes. We welcome you to visit our website: www.hrxfpc.com or contact us via email: sales@hrxfpc.com. We look forward to exchanging ideas and learning from new and old friends in the industry.

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Huaruixin Electronics mainly produces printed circuit boards as the core business, to provide customers with one-stop solutions for FPC/PCB production, components sourcing and Assembly.
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