The high demand for Tesla electric vehicles has attracted Chinese plants who are actively stepping in to grab orders. Printed circuit boards (PCB) and copper-clad laminates (CCL), the critical materials of PCBs, have become the leading block in the red supply chain, putting the Taiwanese factories on alert.
     Take the Tesla Model 3 for example; the disassembly information mastered by the industry shows that the Chinese PCB and CCL index factories make up 90% of the supply of PCBs needed for their power systems, and are leaders in other primary system supplies as well.
      Industry insiders have pointed out that for many years, the red supply chain has significantly expanded its power in the electronics industry with self-made components such as PCBs, LEDs, solar energy, and other components. It is also actively strengthening its supply of major brand manufacturers, from the early notebooks to Apple and non-Apple mobile phones in recent years. Such a direct move to compete for orders with Taiwanese manufacturers has caused a certain degree of pressure on Taiwanese factories. 
     The Tesla Model 3 is an entry-level model and is one of the three main Tesla models. It sold a total of 371,000 units from its launch in 2017 until September this year, placing it first in the world for mid-sized electric vehicles.
      The latest report from market analysts estimate that the sales of the Model 3 in Europe are anticipated to register a quarterly growth rate of about 50%, which will help offset the weak market interference. It is speculated that sales of the Model 3 in Q4 2019 will continue to experience new highs.
　　Tesla has sparked a global wave of electric vehicles which has naturally became a source of new orders as viewed by Chinese companies. As PCBs are known as the “mother of the electronics industry,” the Chinese plants have even considered them as an indicator to get involved.
       The dismantling information mastered by the industry noted that among the three major systems of power, central control, and electric drive for the Model 3, the PCBs, flexible PCBs, and CCL materials of the power management system required for power batteries are almost monopolized by Chinese manufacturers, which have also shown large-scale development.
        In addition to WUS Printed Circuit (Kunshan) and the reinvested plant of WUS Printed Circuit (Taiwan), Tesla has more than 30 suppliers of battery management systems for their electric vehicles. Among the nine vendors listed as PCB suppliers, all of them are Chinese factories, and they primarily get the materials from the Chinese CCL manufacturers, thus forming part of a vertical integration system.
       The disassembly report also mentioned that the Chinese PCB and CCL suppliers for the Model 3’s power management system include SYTECH, GOLDENMAX, Huazheng CCL, CoWorld, etc. Also included in this list are Guangdong Chaohua Technology and the Chinese PCB maker, Kinwong.
        In terms of flexible PCBs and materials required for the power system, besides the Chinese flexible PCB manufacturer, DSBJ, and the PCB manufacturer, Kinwong, the supplier of rolled copper foil and PI film is Guangdong Chaohua Technology. The company also has vertical supply capabilities for PCBs, owning to the production lines of wood pulp paper, electrolytic copper foils, and mid- to low-end CCLs to PCBs.
     Furthermore, the thermal management system, radiator, and aluminum material used in Tesla’s power system are also monopolized by Chinese manufacturers. Except for the battery cooling parts provided by Dana Inc., the American supplier, the suppliers of powder metallurgy parts for other inverter gearbox housings and thermal management components are dominated by Chinese plants. (News source: Economic Daily News)