Main Highlights
Over the last six months, global economic momentum has been mixed, slowing in some regions, stabilising in others, and showing cautious optimism in select markets. For EMS providers, this means navigating a recalibrating supply chain, shifting demand signals, and rising pressure to deliver both resilience and value.
Inflation is easing, but unevenly. Energy costs have dropped in parts of Europe and Asia, but labour and logistics remain costly. Interest rates remain high across major economies, holding back investment, especially in capital-heavy sectors like industrial systems and infrastructure.
Demand in electronics is varied. Consumer and automotive markets have cooled in certain regions, while AI, defence, industrial automation, and medical tech continue to drive growth. The industry faces a unique challenge: overcapacity in some areas, yet tight lead-times persist.
Capacity and lead-time issues
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Lead-times are generally stable across most technologies, though pressure points remain, particularly in memory, including DDR4 and NAND. Any unexpected demand surge or supply disruption could trigger rapid lead-time extensions, especially where safety stocks are thin.
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DDR4 demand remains robust despite the shift toward DDR5. Legacy DRAM supply is tightening, with obsolescence on the horizon and limited buffer in distribution channels for sudden demand spikes. Forecasting and securing demand now is key; this is time-critical.
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NAND markets remain volatile as major consumers adjust usage and manufacturers shift fab allocations. Forward visibility remains crucial.
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High-CV MLCCs and automotive-grade capacitors are tight in specific values and voltage classes. While the situation isn’t critical, proactive forecasting will pay dividends, especially for the automotive, industrial, and telecom sectors.
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High-speed connectors, board-to-board interconnects, and specialised interfaces continue to see extended lead-times, driven by demand from AI infrastructure, EV platforms, and industrial automation.
Pricing considerations
- In June 2025, Texas Instruments implemented global price increases across analogue and mixed-signal lines, citing rising input costs and capacity investments.
- Over 3,300 part numbers were affected, with most price hikes between 15% and 30%.
- Approximately 9% of parts saw increases exceeding 100%.
- Key impacted categories included general-purpose analogue components, precision ADCs and DACs, operational amplifiers, and LDO voltage regulators.
- Analog devices adjusted price targets in line with expectations of an order rebound and broader market sentiment.
Manufacturer Mergers / Acquisitions
- OnSemi acquires Qorvo’s SiC JFET portfolio for $115 million.
- SkyWater Technology acquires Infineon’s Fab 25, expanding U.S. foundry capacity for critical semiconductor technologies.
- NXP agrees to acquire edge AI pioneer Kinara to redefine the intelligent edge.
- OnSemi withdraws its proposal to acquire Allegro MicroSystems after unsuccessful negotiations.
PCB Technology
- Advanced PCB materials, including high-frequency laminates and low-loss dielectrics, remain in tight supply due to strong demand from 5G, AI, and high-speed computing sectors.
- Lead-times for multilayer PCBs, especially those with complex build-ups or embedded components, continue to extend due to capacity constraints at key fabricators.
- Supply chain disruptions in copper foil and prepreg materials are causing localized bottlenecks, making early forecasting critical.
- The push toward miniaturisation and higher layer counts in PCBs is accelerating, adding complexity and production time, which is impacting lead-times and costs.
- Emerging trends like HDI (High-Density Interconnect) and flexible PCBs are gaining traction, further tightening capacity in specialist manufacturing segments.
Global Economy
- Oil pricing is at a 6 month low, priced at $64.97 per barrel
- Gold is climbing, now £2,885.37 per ounce, reflecting increased market uncertainty
- Silver has unusually climbed to £25.70, tracking gold and reaching its highest level this year
- Steel rebar has fallen since the first quarter, listed at $584.50 per tonne at the time of writing
- Bitcoin maintains a two-month high, closing at $120,656.98 per coin and remaining above the crucial $100k mark.
- Copper has also increased with a similar trajectory to gold, currently $10,445 per tonne for three-month contracts.