The current sentiment of the global electronics manufacturing supply chain
31 Jul 2025
News
In its latest report, the Global Electronics Association provides an analysis of the current sentiment and conditions in the global electronics manufacturing supply chain as of June 2025, highlighting cost pressures, demand resilience, and regional differences.
Current challenges in electronics
Manufacturing
Electronics manufacturers are facing significant cost pressures and declining profitability due to rising material and labour costs. Despite these challenges, demand remains resilient, with key indicators showing expansion.
• 63% of manufacturers report rising material costs.
• 48% are experiencing increasing labour costs.
• The Material Costs Index is above its long-term average, but below the 2022 peak.
• Profit margins are declining, with 10% of manufacturers reporting a decrease.
• Recruitment challenges persist, with 13% finding it easier to recruit skilled talent.
Demand resilience amid economic volatility
Demand for electronics has rebounded strongly since late 2024, with several key indicators showing positive growth. This suggests a stable operational environment despite ongoing cost pressures. Orders, backlogs, capacity utilisation, and shipments are all in expansion territory with manufacturers expecting stability in both orders and backlogs through year-end.
Six-month outlook for electronics industry
Manufacturers anticipate that high material and labour costs will persist, but demand is expected to remain stable. This outlook emphasizes the need for cost control and operational agility.
• 66% expect material costs to rise in the next six months.
• 54% anticipate labour costs will also remain high.
• 48% expect orders to remain stable, while 42% foresee stable shipments.
• Profit margins are expected to decline for 45% of global manufacturers.
Although regional variations exist, European manufacturers report a more stable outlook, with 62% expecting orders to remain unchanged.
For more information visit www.ipc.org"
Further reading:
Hitachi reinvents asset management solution
News
Hitachi Energy, in collaboration with Microsoft, is accelerating the digital transformation of essential infrastructure - from electricity networks and transportation corridors to heavy industrial operations - by reinventing how critical assets are managed and maintained.
Read more...
Mycronic releases mixed Q4 results
News
Mycronic reported mixed Q4 results for the year ended January to December 2025, while delivering record full year order intake and net sales.
Read more...
AGOA: Businesses should diversify or face significant exposure
News
Cross-border payments platform Verto has called on South African and African businesses to accelerate their transition toward a “post-AGOA” trade strategy following President Donald Trump’s signing of a one-year extension to the African Growth and Opportunity Act (AGOA).
Read more...
European components distribution growing
News
European electronic components distribution returned to growth in the fourth quarter of 2025, according to newly released figures from DMASS Europe.
Read more...
Silicon Labs reports strong growth
News
Silicon Labs has reported robust financial results for the fourth quarter and full year 2025, with significant YoY revenue gains and shifting market dynamics.
Read more...
Siemens acquires Canopus AI
ASIC Design Services
News
The acquisition extends Siemens’ comprehensive EDA software portfolio with computational metrology and inspection to help chipmakers solve critical technical challenges in semiconductor manufacturing.
Read more...
Micron breaks ground on new wafer fabs
News
Micron Technology has advanced two major semiconductor manufacturing initiatives that together reflect the company’s strategic response to sustained global demand for memory solutions.
Read more...
Texas Instruments announces planned acquisition of Silicon Labs
News
Texas Instruments Incorporated and Silicon Laboratories recently announced a definitive agreement under which Texas Instruments will acquire Silicon Labs, combining two leaders in semiconductor technology.
Read more...
AI-fueled supercycle doubles memory market revenue
News
The ongoing surge in artificial intelligence is set to propel both the memory and wafer foundry sectors to unprecedented revenue levels by 2026, according to TrendForce.
Read more...
Research agreement for EUV tech
News
Gelest, Inc., a Mitsubishi Chemical Group company, recently announced a research agreement with IBM to test Gelest precursor materials for dry resist EUV lithography.
Read more...
printer friendly version