PCB Technologies

Eltek Wins $12.2 Million U.S. Defense Contract

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Israeli PCB manufacturer Eltek announced that it has secured new orders totaling $12.2 million from a U.S. defense customer. Under the contract, the company will supply advanced printed circuit boards to be integrated into dedicated military systems, with deliveries scheduled throughout 2026–2027.

Eltek specializes in the production of complex, high-reliability printed circuit boards for demanding sectors such as defense, aerospace, medical and advanced industry. The company provides PCB solutions based on advanced technologies, including multilayer boards and products designed to operate in extreme environmental conditions and mission-critical applications.

The new award is viewed as evidence of the success of a strategic initiative led by Eltek in recent years. The company has invested substantial resources in upgrading manufacturing infrastructure, acquiring advanced equipment and implementing new technologies in order to meet the stringent requirements of international defense and aerospace markets. These investments are intended to enable higher manufacturing precision, shorter lead times and compliance with strict U.S. standards.

According to company management, the U.S. contract demonstrates that these investments are beginning to pay off and positions Eltek as a competitive supplier in the American defense market — one of the largest and most important markets worldwide for printed circuit boards. The win strengthens the company’s standing and expands its international activity, particularly among strategic defense customers.

Eltek views the order as another step in a long-term shift toward higher value-added products and stronger presence in high-budget, technologically demanding markets. The company said it will continue investing in manufacturing capabilities and business development in the United States in order to deepen penetration into the defense sector and broaden its customer base in the coming years.

PCB Technologies to produce 1 mil PCBs

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PCB Technologies from Migdal Ha’emek (North of Israel) is ready to begin the production of high density Printed Circuit Boards for its cotumers in Israel and abroad. During the last couple of years it had developed the capability to produce very thick conductor’s width and spacing , of up to just 25 microns (1 mil).  During the project, PCB Technologies has established its own research and development experise in this technology and purchased unique equipment modified to the company’s specifications, using about a 20 million shekel investment.

According to the Vice President Of Marketing, Arik Einhorn, this move will allow the company to provide production services for costumers in Israel, Europe and the US, and to get ready for the next level of its technology roadmap: placing chips directly on Printed Circuit BoardS (Chip on Board). Arik Einhorn: “We are not a regular High Mix Low Volume company – we are also a High Performance solutions provider.”

Gainig foothold in Europe and the US

“We have noticed that our technology is highly advanced compared with Europe, and therefore we decided to strengthen this advantage in order to gain more foothold in the European market and in the US. One of the components of this move is creating the capability to produce 1 mil PCBs, which does not exist in the US and almost doesn’t exist in Europe. In fact, we found out that it exists today mostly in China and Taiwan because of the cellphone manufacturing done there. Only now the US government has decided that it needs to invest in creating 1 mil capability in the US.

“In this sense, PCB Technology will be among the first companies in the West Hemisphare to have this technology”. He relayed that the decision was made following an in depth process of research and talking with customers. “Our technology roadmap was determined during a series of focused meetings that we held with select customers in order to understand their needs and expectations.”

The roadmap was defined by the costumers

“These customers manufacture elite technologies for advanced radar systems, UAVs, minimally invasive medical equipment and more. We presented them with different options for advancement of our technologies, and they provided us with feedback about their needs. We defined our top goals based on those meetings. Some of them are already starting to plan future products based on our capability to produce 1 mil PCBs”.

A horizontal cut of 1 mil test board, that was produced at PCB Technologies
A horizontal cut of 1 mil test board, that was produced at PCB Technologies

PCB Technologies is an All-in-One solution provider for the fabrication of high reliability, multi-layer printed circuit boards and top-level assemblies (PCBA), mainly for defense, aerospace, healthcare, RF/microwave and telecom sectors. Today they employ approximatly 750 people. The company is is traded in the Tel Aviv Stock Market at market value of about 360 million shekels. Its major shareholder (48%) is Tel Aviv based FIMI Opportunity Funds.

PCB Technologies is looking for EMS Acquisition

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Above: Assembly floor at PCB Technologies

The sales of the Electronic Manufacturing Services provider from the Galilee, PCB Technologies, were not affected by the COVID-19 Pandemic. “We have experienced growth in demand from our core customers in the defense and medical industries,” said PCB’s CEO Oved Shapira. “They were not affected by the Global pandemic. We even increased our investments in capacity building in order to meet their needs.”

During the second quarter of 2020, revenues grew by approximately 24% compared to the second quarter 2019, amounting to approximately $31.3 million. The growth was felt in the company’s two main areas of operations: the production of printed circuit boards and the assembly of electronic boards.

PCB Technologies reported a 45% increase in gross income (approximately $3.6 million) following the implementation of a plan to improve productivity on the production floor and to reduce fixed production costs. Net income was approximately $1.9 million, compared to $365,000 in the second quarter of 2019. In the first half of the year, sales totaled at approximately $57.4 million, compared to $54 million in the first half of 2019.

Expansion through R&D and Acquisitions

Shapira: “We recently acquired an account that may generate an additional annual revenue of about $5-8 million. This acquisition brings us new customers. We are constantly exploring options to increase production capacity in several destinations in the Western markets through attractive acquisitions.”

PCB Technologies is controlled by the FIMI Opportunity Funds private equity firm (approximately 48%) and is traded on the Tel Aviv Stock Exchange at a value of approximately NIS 366.7 million ($108 million). It provides complex printed circuit board production services and electronic manufacturing services (EMS).

It currently employs roughly 750 people. During the first quarter of 2020, the company established a large research and development department, in order to develop proprietary new technologies to innovate the production of PCB’s and bring new products to the market.