Why Regional Tech Companies Are Investing in PCB Design and Hardware Engineering

FAQ about PCB Design

What is PCB Design?

PCB design is the process of creating the layout for printed circuit boards (PCBs) that allow electronic components to function. It involves arranging electronic components, creating pathways for electrical signals, and ensuring that all connections are stable and efficient.

Proper PCB design is essential for the reliability and performance of electronic devices, from smartphones to industrial equipment. For a deeper understanding of PCB design and its importance, you can read the InTechHouse PCB article where they explain the difference between PCB Design and Hardware Design.

What is Hardware Engineering?

Hardware engineering is the field focused on designing, developing, and testing physical components of electronic devices. It covers everything from microchips and processors to memory storage and power systems.

Engineers in this field work with circuit boards, sensors, and other essential components to make sure that devices operate effectively and meet specific requirements.

Hardware engineers also focus on optimizing performance, durability, and cost-efficiency. This discipline often overlaps with PCB design, as both are essential for the overall functionality of electronic products.

Here are the most common physical components in hardware engineering:

• Microprocessors
• Memory chips
• Sensors
• Power supply systems
• Connectors and cables
• Heat sinks and cooling systems

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Why Do Regional Tech Companies Invest in PCB Design and Hardware Engineering?

Regional tech companies are investing in PCB design and hardware engineering for several reasons, such as:

1. Supply chain resilience and nearshoring
2. Higher value capture and IP control
3. Regulatory and customer pressure
4. Sector-specific demand and specialized boards
5. Control, confidentiality, and IP protection
6. Cost efficiency and workflow optimization

Let’s go through them in more detail now.

1. Supply chain resilience and nearshoring

Geopolitical tensions, logistical challenges, and tariff impositions have made global supply chains less predictable. As a result, companies are moving their manufacturing closer to end markets, particularly in regions like Europe and Central and Eastern Europe (CEE).

Nearshoring minimizes transit risks, reduces lead times, and allows for more agile responses to demand shifts. Its main advantages are:

• Shorter shipping times and reduced logistics costs
• Increased flexibility to adjust production based on market demands
• Less vulnerability to global supply chain disruptions
• Easier management and oversight of production quality
• Faster turnaround times for prototypes and product updates

2. Higher value capture and IP control

Regional tech companies gain greater control over their products by investing in PCB design and hardware engineering. Owning the entire design and manufacturing process allows them to capture more value and profit, instead of relying on overseas original design manufacturers (ODMs) or original equipment manufacturers (OEMs).

This change allows companies to retain more intellectual property (IP), which is important for innovation and staying competitive in the market.

3. Regulatory and customer pressure

As regulations surrounding local content and sustainability become more stringent, regional tech companies find it easier to meet these demands when they control their own design and manufacturing.

Local production allows companies to comply with environmental regulations, traceability requirements, and other standards without relying on offshore partners. Additionally, customers are increasingly expecting products to meet high sustainability standards, which drives companies to invest in more localized operations.

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4. Sector-specific demand and specialized boards

Many industries, such as automotive, telecommunications, and industrial IoT, require highly specialized, high-performance circuit boards.

Through investing in in-house PCB design and hardware engineering, regional tech companies can cater to these unique needs more effectively. They can develop customized solutions that meet strict mechanical, electrical, and regulatory specifications, which is often difficult with generic designs from external vendors.

Here are the most common industries:

• Automotive electronics (e.g., ADAS, EV power systems)
• Telecom (e.g., 5G infrastructure, edge computing)
• Industrial IoT (e.g., sensors, robotics)
• Aerospace and defense (e.g., mission-critical components)
• Medical devices (e.g., diagnostic equipment, patient monitoring systems)

5. Control, confidentiality, and IP protection

Moreover, keeping PCB design and hardware engineering in-house or with trusted local partners provides stronger protection for intellectual property (IP). Many industries, such as defense, medical devices, and industrial automation, deal with sensitive information that requires robust protection against theft or duplication.

Regional companies are able to maintain tighter control over their designs, preventing potential IP leaks that could occur when outsourcing to offshore manufacturers. This reduces the risk of counterfeit products or unauthorized copies of innovative designs.

As a result, you achieve:

• Better security and control over sensitive designs
• Minimized risk of IP theft or cloning
• Improved confidentiality for mission-critical or proprietary technology
• Better management of design documentation and process integrity
• Compliance with industry-specific IP protection regulations

6. Cost efficiency and workflow optimization

Investing in PCB design and hardware engineering locally can lead to significant cost savings over time. Though initial setup costs for equipment, tools, and talent are high, these investments reduce expenses related to shipping, rework, and delays associated with outsourcing.

Co-locating design, engineering, and production teams also enhances workflow efficiency, allowing for faster problem-solving and design iteration. The result is quicker time-to-market and more efficient production processes.

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Why Should You Invest in PCB Design and Hardware Engineering?

Investing in PCB design and hardware engineering offers several advantages for regional tech companies, such as:

1. Faster Prototyping and Time-to-Market. In-house design and manufacturing enable quicker prototyping and testing. Companies can shorten product development cycles, allowing them to launch new products faster and stay ahead of competitors.
2. Improved Product Quality and Reliability. Direct oversight of the design and manufacturing processes results in higher-quality products. Engineers can immediately address design flaws, reducing the likelihood of product failures in the field.
3. Customization and Competitive Differentiation. Companies can design highly customized PCBs to meet specific industry requirements. This level of customization helps differentiate products in competitive markets, such as automotive or industrial IoT.
4. Cost Savings Over Time. Although initial investments may be high, in-house capabilities reduce costs associated with shipping, outsourcing, and rework. Companies can manage production more efficiently, lowering long-term expenses.
5. Better Control Over Intellectual Property (IP). Keeping design and manufacturing local allows companies to protect their IP more effectively, reducing the risk of theft or unauthorized replication by external vendors.

Final Thoughts

Investing in PCB design and hardware engineering allows regional tech companies to strengthen their operations, enhance product quality, and maintain better control over intellectual property. Localizing design and manufacturing helps companies stay competitive by improving flexibility, speed, and efficiency.

As the global market for PCBs continues to grow, regional players can gain a big advantage by mastering these processes.