On November 12, China's Ministry of Industry and Information Technology (MIIT) released draft guidelines for the printed circuit board (PCB) industry, proposing stricter controls on new low-tech projects aimed solely at expanding production capacity.

The draft encourages clustered development of PCB manufacturing in well-equipped industrial parks and supports companies in strengthening technological innovation, improving product quality, and reducing costs. It aims to foster internationally competitive, technologically advanced, and specialized PCB enterprises.

Key points from the draft include: 1. Strict prohibition of PCB projects in environmentally sensitive areas 2. Mandatory compliance with land use, environmental protection, and energy efficiency regulations 3. Minimum requirements for R&D investment (3% of revenue or ≥10 million yuan) 4. Production capacity utilization must exceed 50% 5. Annual per capita output value threshold of 600,000 yuan

The guidelines emphasize: - Adoption of advanced, automated, and environmentally friendly production processes - Mandatory quality management systems (ISO 9001 certification) - Encouragement of smart manufacturing and digital transformation - Requirements for cleaner production and waste recycling - Compliance with workplace safety and hazardous materials management standards

Companies failing to meet requirements will face removal from the approved list and a two-year ban on reapplying. The draft takes effect in 2025, replacing the 2018 version.

The policy reflects China's push for industrial upgrading in strategic sectors while addressing overcapacity concerns in traditional manufacturing.