From Zero-Carbon Factories to Reporting Environmental Impact: Sustainability Takeaways from APEX EXPO 2026

Apr 01, 2026

By Seth Jacobsen, Sustainability Program Manager, Global Electronics Association

Key Summary
  • During in-depth panels and technical sessions at APEX EXPO 2026, industry leaders highlighted how sustainability has transformed into a competitive mandate for the electronics sector. From tracking and reporting environmental data to the business benefits that accompany sustainability efforts, electronics leaders are navigating how to increase sustainability in their operations. 

Sustainability is moving from intention to implementation. That was our resounding takeaway from APEX EXPO 2026, where industry leaders convened to discuss the measurable outcomes, real-world progress, and solutions for overcoming decarbonization challenges.

In sustainability-focused sessions, the Association celebrated measurable sustainability gains – including Panasonic’s strides toward a zero-carbon factory by 2030, Jabil being ahead of schedule on its greenhouse gas emission reductions, and Koh Young helping customers reduce waste via “smart” inspections and data-driven manufacturing. 

What did we hear from industry about their sustainability efforts at APEX EXPO 2026?

  • Industry players from around the world shared how sustainability has become a core part of their business strategies, helping to drive tangible benefits to bottom lines. 
  • Sustainability measures like reducing defects, improving manufacturing efficiencies, and optimizing energy use are helping electronics players to improve profitability and performance. 
  • Improved recycling systems are also aiding the industry to reduce its outsized waste – currently less than 20% of electronics products are recycled – while enabling manufacturers to repurpose working components and metals.
  • While the electronics industry clearly aspires to reduce its environmental impact, many electronics players grapple with where to start – and how to report their impact. Companies that track, measure, and report sustainability data have a competitive edge: for some, this data has been the differentiator in winning or losing business.
Learning Lounge APEX EXPO 2026 John Mitchell

John Mitchell moderated an executive-level panel featuring Association members Andy Behr, Director of North America, Panasonic Industry – Electronic Materials Division; Thomas Cetta, Senior Vice President and Chief Compliance Officer at Jabil; and Joel Scutchfield, General Manager of Koh Young America.

A deep dive into better sustainability data at APEX EXPO 2026:

One common challenge we hear about all the time is how do we track, measure, and report sustainability data better. At APEX EXPO, this conversation took the spotlight. 

Here are our takeaways: 

  • Aligning industry through standards: Companies rarely have a standardized approach to measuring sustainability, making results hard to compare. Common standards are needed so customers can trust and compare the numbers they receive.
  • Streamlining data: The data that underpins product carbon footprints, life cycles, material composition details, and supply chain information is often missing, disconnected, or hard to use. This information tends not to exist in a single place, follows consistent standards, and can be difficult to obtain from suppliers. 
  • Decarbonizing in tandem with suppliers: Supplier data that is detailed and comprehensive can be hard to obtain. While manufacturers may know a lot about their own processes, they have less visibility further down the supply chain – requiring them to engage with suppliers. 
  • Automatizing data collection: Manual data gathering is too slow and difficult for large, complex electronics supply chains. Better tools like AI and other forms of automation can help collect data faster and improve estimates, making sustainability reporting easier. 
Learning Lounge APEX EXPO 2026 Seth Jacobsen

Association members shared insights on why data Is sustainability’s biggest bottleneck.

The message at APEX EXPO was clear: The electronics industry is making significant strides in addressing its environmental impact. The Global Electronics Association is proud to lead the industry towards an accelerated path to sustainability.

IPC Masters Competition China 2026 Unveils Winners, Empowering Advanced Talent Development in Electronics Manufacturing

On March 25–27, the IPC Masters Competition China was held in Pudong, Shanghai. This year’s competition brought together 623 leading professionals in the electronics industry from 21 provinces and municipalities. The event spanned a wide range of industry sectors, including aerospace, automotive electronics, rail transit, consumer electronics, energy, and industrial manufacturing.

A total of 132 contestants advanced to the hands-on competition after completing the IPC Standards Knowledge Competition. Among them, 72 competed in the Hand Soldering and Rework Competition (HSRC), 36 in the Cable and Wire Harness Assembly Competition (CWAC), and 24 in the Ball Grid Array/Bottom Termination Components (BGA/BTC) Rework Competition.

In the Hand Soldering and Rework Competition (HSRC), Jing Wang from AVIC Xi’an Flight Automatic Control Research Institute secured first place, followed by Yuebin Shi from Tianjin Railway Signal Co., Ltd., and Haoyu Wang from Xi’an Hengxiang Control Technology Co., Ltd.

In the Cable and Wire Harness Assembly Competition (CWAC), Kun Jin from Jiangsu Jinling Mechanism Manufacture Factory secured first place, with Lisha Liu from Zhuzhou CRRC Times Electric Co., Ltd. in second place, and Feng Zhang from Jiangsu Jinling Mechanism Manufacture Factory in third.

In the BGA/BTC Rework Competition, Liheng Gao from Jiangsu Jinling Mechanism Manufacture Factory secured first place, followed by Wenli Shu from AVIC Xi’an Flight Automatic Control Research Institute and Siyan Xu from Jiangsu Jinling Mechanism Manufacture Factory.

“This year’s IPC Masters Competition China reflects a clear industry shift—toward higher standards, greater complexity, and stronger demand for advanced skills,” said Sydney Xiao, President of East Asia, Global Electronics Association. “As expectations for quality and reliability continue to rise, the ability to turn standards into consistent performance is no longer optional, but essential. Advancing standards, elevating skills. Competitions like this are critical to building that capability across the industry.”

IPC China extends its appreciation to the sponsors and partners of the 2026 IPC Masters Competition China for their continued support: 

  • Co-Organizer: Pudong New Area Association For Quality And Technology Shanghai
  • Strategic Partner: Messe Muenchen Shanghai Co., Ltd. 
  • Premier Sponsor: Quick Intelligent Equipment Co., Ltd.
  • Supporting Sponsors: Shanghai POUSTO Electronic Engineering Co., Ltd; WEETECH China Ltd.

For more information about IPC Masters Competition China, please contact China@electronics.org.

At the Center of the Workforce Equation: Why Coordination Matters More Than Ever

Mar 31, 2026
Key summary:
  • Workforce challenges are systemic, requiring coordinated, ecosystem-level solutions rather than isolated fixes.
  • Fragmented training pipelines must be aligned and standardized to enable scalable talent development.
  • Intermediaries are essential in connecting employers, educators, and funders to drive industry-wide workforce impact.

By David Hernandez, Vice President, Education, Global Electronics Association

Workforce challenges may exist at multiple levels simultaneously. Skilled labor shortages by individual companies are typically a reflection of broader regional and industry challenges. This white paper produced by the Deloitte argues that in order to address workforce challenges is a particular region or industry there must be a “collective vision of the workforce development ecosystem as an ecosystem.” Ecosystems by their nature are dynamic, organic, and in a constant state of evolution. The paper argues that while there are small pockets of successful workforce pipelines, they are fragmented, isolated, and small. In order for a broader industry ecosystem to thrive, there must be a greater level of connection between those who develop the workforce solutions, those who deliver those solutions (training institutions), those who hire the outputs of those programs (employers), and those who can help support and fund implementation (government). I would argue that the central point of all of these stakeholders are the intermediaries such as the Global Electronics Association, who help connect the various players and facilitate the standardization and dissemination process. 

For my second article I wanted to provide an example of how workforce standardization is helping another industry (clean energy) scale their workforce and address existing skill gaps. The article, and the report it references (Expansion of Registered Apprenticeship Programs in Clean Energy) outline the effectiveness of an ecosystem approach to workforce, in which industry members work together (much like with the Standards process) to develop workforce solutions and implement them within their organizations. The underlining theme in the article and report is that by standardizing the workforce solutions at an industry level (as opposed to locally) the individual workers and companies benefit, but so does the broader industry. When I describe a trained workforce, I am referring to an industry wide pool of talent, where workers are trained on standardized programs that facilitate hiring, career development, and retention. 

My last recommendation is an I-Connect SMT007 interview with Cory Blaylock, director of workforce partnerships and Vicki Hawkins, director of workforce grants and funding. In the interview they discuss the Global Electronics Association apprenticeship programs, how they are working to connect funders and employers, and provide some examples of successful implementations in our industry. 

Global Electronics Association and MIMOS Berhad Sign MoU to Advance Malaysia’s Electronics and Semiconductor Ecosystem

The Global Electronics Association and MIMOS Berhad recently signed a Memorandum of Understanding (MoU) to collaborate in strengthening Malaysia’s electronics and semiconductor ecosystem, with a focus on advanced electronic packaging (AEP), industry alignment, and global best practices.

Malaysia continues to emerge as one of Asia’s most dynamic electronics and semiconductor hubs, supported by strong manufacturing capabilities, deep integration into global supply chains, and a growing presence of multinational companies. The country’s established strengths in assembly, testing, and semiconductor packaging, combined with increasing momentum in AI, high-performance computing, communications, power and automotive electronics, present significant opportunities for global companies to expand market access and partnerships across Southeast Asia.

As the industry is evolving fast into the heterogeneous integration of processors, memory, sensors, control and power devices and system-level innovation, the need for greater ecosystem coordination and globally aligned frameworks is becoming increasingly important to support scalability, interoperability, and long-term competitiveness. The MoU outlines a framework to support this transition within Malaysia’s electronics manufacturing sector.

The MoU establishes a strategic collaboration focused on advancing AEP through:

  • Advisory and Insights – Global market trends and strategic guidance 
  • Standards and Best Practices – Development of guidelines and standards 
  • Capability Building – Co-hosted workshops and knowledge-sharing initiatives 
  • Technical Support – Validation of design, assembly, and packaging technologies 
  • Ecosystem Engagement – Collaboration with industry, academia, and government

This MoU builds on the Global Electronics Association’s growing presence in Malaysia, reflecting its commitment to supporting innovation and industry development in one of the region’s key electronics hubs.

Afdzal Syahadat Husin, Chief Executive Officer, MIMOS Technologies Sdn Bhd, said: “Malaysia’s electronics and semiconductor industry is entering a critical phase of transformation, driven by the growing complexity of next-generation technologies and the shift towards advanced electronic packaging. This collaboration reflects a shared commitment to strengthening Malaysia’s position within the global value chain by fostering deeper industry alignment, accelerating capability development, and advancing the adoption of globally recognised standards and best practices. Through this partnership, MIMOS aims to catalyse innovation, enhance ecosystem readiness, and support the nation’s ambitions to become a leading hub for high-value electronics manufacturing in the region.”

Matt Kelly, CTO and VP, Standards & Technology, Global Electronics Association, said: “Advanced electronic packaging is rapidly becoming the backbone of next-generation technologies, from AI and high-performance computing to automotive, power and communications systems. Strengthening industry collaboration and developing globally aligned guidelines and standards will be critical to unlocking Malaysia’s full potential in this space.”

Dr. Ranee Ramya, Country Manager – Malaysia, Global Electronics Association, added: “Malaysia’s electronics industry is at a pivotal stage of growth, with increasing focus on advanced and high-value manufacturing segments. Strengthening industry alignment, advancing standards adoption, and enabling initiatives such as CQI programs and validation services are critical to positioning Malaysia as a leading hub for advanced electronics in Southeast Asia.”

Accounting for Scope 3 Category 1 Emissions: New Industry Guidance to Help Advance Decarbonization in Electronics

Date
- (10:00 - 11:00am CDT)

Scope 3 Category 1 emissions – those from purchased goods and services – often represent the largest and most complex share of emissions across the electronics value chain. Accurately measuring and managing these emissions is essential for companies working to meet climate goals, respond to regulatory pressures, and drive meaningful supply chain decarbonization.

To support this effort, the Global Electronics Association, in collaboration with the Responsible Business Alliance and industry partners, has developed new Scope 3 Category 1 Greenhouse Gas Guidance – a practical resource designed specifically for the electronics industry.

Join us for this webinar to explore how this guidance can help your organization move from ambition to implementation.

What You’ll Learn

In this session, we will introduce the guidance and walk through practical, industry-aligned approaches to:

  • Improving Scope 3 Category 1 emissions accounting
  • Moving from spend-based estimates to more accurate, supplier-specific data
  • Addressing common data challenges across complex electronics supply chains
  • Strengthening supplier engagement to support decarbonization efforts
  • Aligning Scope 3 strategies with broader sustainability and reporting requirements

You’ll also hear real-world perspectives from electronics companies featured in the guidance, sharing lessons learned and actionable best practices for improving data quality and driving progress.

 

Why This Matters

As sustainability expectations accelerate – from customers, regulators, and investors – companies must be able to confidently measure and manage their Scope 3 emissions.

This guidance helps organizations:

  • Translate Scope 3 requirements into actionable steps
  • Improve consistency and credibility in emissions reporting
  • Build stronger, more collaborative supplier relationships
  • Identify opportunities for measurable emissions reductions

 

Who Should Attend

This webinar is designed for professionals across the electronics value chain, including:

  • Sustainability and ESG leaders
  • Supply chain and procurement professionals
  • Environmental compliance and reporting teams
  • Operations and manufacturing leaders
  • Anyone responsible for Scope 3 emissions accounting or decarbonization strategy

 

Speakers

  • Emma Armstrong, Executive Director, Anthesis
  • Holly Evans, Senior Vice President, Environmental Policy & Legal Affairs, Responsible Business Alliance
  • Seth Jacobsen, Sustainability Program Manager, Global Electronics Association
  • Susie DiNino, Supply Chain Decarbonization Manager, Cisco

 

Register Now

Gain practical insights and tools to strengthen your Scope 3 Category 1 strategy and accelerate decarbonization across your supply chain.

 

AI Is Reshaping Electronics Manufacturing: 3 Must-Read Insights

Mar 25, 2026

KEY SUMMARY: 

AI demand is driving major shifts across the electronics industry, accelerating high-end PCB capacity, advanced packaging investment, and the evolution of EMS providers into full system integrators.

By Matt Kelly, CTO and VP, Standards & Technology

These reads highlight how AI is driving structural shifts across the electronics ecosystem, from PCB capacity and advanced packaging to the evolving role of EMS. Each reflects how the industry is moving up the value chain to support next-generation systems.

Research Insight: AI Reshapes Taiwan’s PCB Industry Around High-End Capacity and Materials

A good read on how AI demand is pushing PCB manufacturers, especially in Taiwan, toward higher-end capacity. The shift toward AI-focused production could tighten supply for other electronics sectors. https://www.digitimes.com/news/a20260317PD210/high-end-pcb-capacity-demand-taiwan.html

Amkor Accelerates U.S. Advanced Packaging Investments

A strong read on Amkor’s expansion of advanced packaging capacity in the U.S. to support AI growth. Advanced packaging is emerging as a key bottleneck, underscoring the need for regional investment to build supply chain resilience. https://www.theglobeandmail.com/investing/markets/stocks/LRCX/pressreleases/740203/amkor-eyes-strong-2026-as-ai-and-hpc-packaging-ramps-accelerate/

AI Supercycle Reshapes EMS into System Integrators

An interesting read on how AI is pushing EMS providers beyond assembly into full system integration. This reflects a broader shift, with EMS moving up the value chain into power, cooling, and full system delivery. https://iamfabian.substack.com/p/the-ai-supercycle-and-the-global

 

2026 IPC Masters Competition China Kicks Off in Shanghai, Advancing Industry Excellence Through Standards and Talent

The 2026 IPC Masters Competition China officially opened today at productronica China in Shanghai. As a world-class competition in the electronics manufacturing industry, this year’s event drew 623 participants from 77 electronics manufacturing companies nationwide to compete in the IPC Standards Knowledge Competition. Among them, 132 top performers advanced to the hands-on competition round, making this the largest edition in the event’s history. The competition features three fully upgraded practical challenges designed to rigorously evaluate participants’ expertise in electronic assembly processes and the application of IPC standards.

The hands-on competition projects have been comprehensively upgraded in both design and evaluation methodology, with a broader scope and closer alignment to real-world manufacturing scenarios. The hand soldering and rework competition now includes D-PAK component rework and mechanical assembly tasks, with scoring criteria aligned with the latest IPC-7711/7721 standards. The wire harness assembly competition enhances functional testing and introduces high-precision automated inspection. Meanwhile, the BGA/BTC rework competition increases PCB assembly complexity and introduces new AOI-based visual inspection.

Industry Transformation Accelerates, and Skills Empower New Quality Productive Forces

The electronics industry is transitioning from traditional consumer electronics-driven growth to a new phase led by AI, high-performance computing, and new energy applications. As technological innovation drives industrial transformation, advanced manufacturing is accelerating the development of new, quality productive forces. With increasing system complexity, the industry demands higher levels of process capabilities and skilled talent, making “quality” and “reliability” the foundation of manufacturing competitiveness.

As a core process in electronics manufacturing, assembly quality directly determines product reliability and manufacturing excellence. The IPC Masters Competition China integrates skills-based competition with IPC international standards, providing a platform to showcase advanced assembly capabilities while continuously cultivating a workforce equipped with expertise in global standards—driving the industry toward higher levels of technical capability.

Standards and Talent in Synergy to Strengthen Industry Competitiveness

IPC standards serve as the “common language” across the global electronics manufacturing supply chain, while frontline technical talent is key to translating standards into product quality. By combining standards knowledge assessment with hands-on competition, the IPC Masters Competition China promotes practical application of standards on the production floor and fosters multidisciplinary talent with both standards awareness and technical proficiency—injecting sustained momentum into industry innovation.

“This year’s competition continues the dual evaluation model of standards knowledge and hands-on skills, while reaching new heights in both participation scale and technical depth,” said Sydney Xiao, President of East Asia, Global Electronics Association. “The level of professionalism and diversity has significantly improved. The IPC Masters Competition China closely aligns with industry trends, continuously leveraging standards to guide and talent to empower, contributing to the high-quality development of the industry.”

The awards ceremony for this year’s competition will be held on March 27. For more information, please visit the official website at masters.ipc.org.cn or follow IPC Asia on WeChat.

John Luddy Named Interim Executive Director of U.S. Partnership for Assured Electronics (USPAE)

The Global Electronics Association today announced that John Luddy has been appointed interim executive director of the U.S. Partnership for Assured Electronics (USPAE), bringing decades of experience in national security policy, government relations, and defense industry leadership to the role. Luddy replaces the previous executive director, James Will. 

USPAE is a subsidiary of the Global Electronics Association that focuses on partnerships with the U.S. Government to support a more robust defense electronics industrial base. 

As interim executive director of USPAE, Luddy will engage industry and government leaders on the strategic opportunities and vulnerabilities facing the defense electronics industrial base, while advancing federal investment in critical research and development. The role is centered on education, dialogue, and partnership, aligning industry and government around priorities that strengthen the nation’s electronics ecosystem.

Luddy joins USPAE from Vector Strategies, a consulting practice providing strategic advisory, business development, market analysis, and legislative advocacy services to clients ranging from aerospace firms to technology companies. Previously, he served as vice president for national security policy at the Aerospace Industries Association (AIA), where he led the development of AIA’s national security policy agenda and played a leading role in public and government advocacy on national security and defense industrial base issues.  

“I’m pleased to serve as Interim Executive Director of the U.S. Partnership for Assured Electronics,” said Luddy. “A secure and resilient electronics supply chain is critical to national security and to the strength of our defense industrial base. USPAE plays an important role in bringing together industry, government, and research partners to address these challenges, and I look forward to working with the board and our partners to strengthen this collaboration and advance practical solutions.”

“John brings a rare combination of policy expertise, industry insight, and leadership experience to this role,” said John W. Mitchell, USPAE Chairman of the Board. “His deep understanding of the intersection between government, national security, and advanced technology makes him exceptionally well-positioned to guide USPAE during this transition and continue strengthening its impact across the electronics and U.S. defense ecosystem.”

Luddy holds a master’s degree in international relations from Tufts University’s Fletcher School of Law and Diplomacy, a bachelor’s degree in history from Bates College, and is a graduate of the U.S. Army’s Ranger and Airborne Schools. He served on active duty as a Marine Corps infantry officer and in Reserve policy, operations, and public affairs assignments. 

From Local Expertise to Global Impact: Northstar Technologies and the Power of Community

Mar 20, 2026

KEY SUMMARY 

Northstar Technologies has grown from a Hong Kong startup into a global provider of semiconductor test solutions 

Expansion across the U.S., China, Italy, and the Philippines highlights its international footprint 

The Philippines serves as a key innovation hub, driving product development and engineering excellence 

Workforce training through Global Electronics Association certification programs improves quality, efficiency, and reliability 

Adoption of global standards strengthens Northstar’s role in the electronics manufacturing ecosystem 

Industry engagement and community connections enhance visibility, collaboration, and continuous improvement 

The company exemplifies how local expertise, supported by global networks, can drive innovation and growth 

 

By Arpita Das, manager, communications, Global Electronics Association India and Southeast Asia 

Founded in Hong Kong in 2008, Northstar Technologies began as a small team of circuit board repair experts with a singular mission: to help customers increase productivity and reduce costs through high-quality semiconductor test solutions. 

From those early beginnings, the company steadily expanded its global footprint, establishing facilities in the United States, China, Italy, and the Philippines. Its operations in the Philippines have become a standout success story in Northstar’s journey. 

By tapping into the country’s deep pool of skilled engineers and technicians, Northstar has elevated both the quality of its products and the Philippines’ growing role in the global electronics ecosystem. This dedication is embodied in innovations such as the Javelin J800 and Spartan NH8800, both designed and manufactured in the Philippines, reflecting the company’s commitment to local expertise and global excellence.  

A key pillar of Northstar’s success is training 

Since joining the Global Electronics Association in 2019, Northstar has leveraged IPC training and certification programs, including IPC/WHMA-A-620 (Cable and Wire Harness Assemblies), IPC-A-610H (Acceptability of Electronic Assemblies), and IPC-7711/7721 (Rework, Modification, and Repair of Electronic Assemblies). Nearly 100 employees have become Certified IPC Trainers. 

These programs have not only reduced errors and inefficiencies; they also helped build a culture of accountability, continuous improvement, innovation, and values that are core to the global electronics community. 

Today, the Philippines stands as one of Southeast Asia’s most important electronics manufacturing hubs, exporting integrated circuits and semiconductor devices that power countless products worldwide. Its strategic location, robust infrastructure, and highly skilled workforce have made it a preferred destination for multinational companies. 

Northstar plays an important role in this ecosystem by ensuring the reliability of those components through advanced test engineering solutions. Beyond technology, the company contributes to the country’s reputation as a trusted global partner through strict adherence to internationally recognized standards, a strong focus on research and development, and ongoing workforce training.  

Connections Made Through Global Electronics Association Membership 

Membership in the Global Electronics Association has connected Northstar to a broader industry community. Through access to training, certification programs, and international events, the company continues to strengthen its capabilities while engaging with peers across the global electronics ecosystem. Northstar consistently applies IPC standards across its production processes to maintain world-class quality. 

Participation in events such as the Cable and Wire Harness Competition has provided Northstar’s team with opportunities to demonstrate their technical expertise, build confidence, and raise their visibility in the global electronics marketplace. 

Looking ahead, Northstar Technologies remains focused on growth and innovation 

As company president, Roy Allen Bihag explains: 


“The Philippines still has a lot of untapped potential. By harnessing our technical expertise and resilience—and anchoring our ideas in the global standards set by the Global Electronics Association—we can bring more meaningful and impactful innovations to the global market.”    

Electronics Manufacturing: Demand Holds Firm, but Cost Pressures Intensify

Mar 19, 2026
KEY SUMMARY 

  • Global Electronics Association sentiment data shows electronics manufacturing demand remained strong in March 

  • Orders, shipments, and capacity utilization indices indicate sustained production activity and resilience 

  • Backlogs are easing slightly, signaling improved throughput or moderating demand growth 

  • Material costs are rising sharply, with widespread input cost pressures impacting margins 

  • Memory component markets are tightening due to AI-driven demand and data center expansion 

  • Manufacturers report increased lead times and significant price increases for memory components 

  • Limited near-term relief expected, with ongoing supply constraints and cost challenges 

  • Companies must balance procurement, pricing, and production strategies in a complex operating environment 


By Shawn DuBravac, Chief Economist, Global Electronics Association

The latest findings from The Current Sentiment of the Global Electronics Manufacturing Supply Chain show demand across the electronics manufacturing sector remained elevated in March following February’s sharp surge, signaling continued resilience in industry activity. Simultaneously, manufacturers are facing renewed cost pressures and tightening component availability, particularly in memory markets, creating a more complex operating environment. 

Demand Stabilizes After February’s Spike 

Order activity remained strong in March, though slightly below February’s peak.  

The Orders Index registered 120, down from February’s 12-month high of 122 but still well above January’s 113. More than half of manufacturers (51%) reported rising orders, indicating demand momentum remains intact. 

 

Production indicators reflect similarly steady conditions. The Shipments Index held at 117 for a second consecutive month, while Capacity Utilization also registered 117, suggesting that manufacturers continue to operate at a sustained pace to meet demand. 

 

The Backlog Index eased to 105, down from 108 in February. Although still in expansion territory, the narrowing gap between orders and backlogs could signal improving throughput as manufacturers work through accumulated orders or a slight moderation in incoming demand. 

 

Overall, the data suggest a relatively balanced environment, with demand remaining strong and production keeping pace. 

Material Cost Pressures Rise 

While demand conditions remain supportive, the cost environment is becoming more challenging. 

The Material Costs Index climbed to 139 in March, up from 129 in February, marking the highest level in more than a year. Nearly 78% of manufacturers reported rising material costs, pointing to broad-based input cost escalation across the electronics manufacturing ecosystem. 

For many companies, these increases are not being fully offset by higher prices or productivity gains, creating growing margin pressure. 

Memory Markets Tighten 

The survey also examined conditions in the global memory component market, where demand tied to AI infrastructure is reshaping supply dynamics. 

94% of manufacturers report they can still source memory components, though 62% say availability is limited or lead times have extended.  

 

Pricing pressures are widespread: 82% report rising memory prices, with 33% describing increases as significant. 

 

Fifty-eight percent of survey respondents identified AI-related workload growth as the primary driver of these shifts. Additional factors contributing to tighter supply include data center expansion (41%) and preferential allocation to higher-margin customers (20%). 

 

Limited Near-Term Relief 

Manufacturers do not expect immediate improvement. Only 14% of respondents believe memory sourcing conditions will improve within the next six months, while 36% say it is too early to assess. 

Looking ahead 

Taken together, the data suggest the industry is entering a period in which demand remains strong, but cost pressures and component constraints are becoming more pronounced. Navigating these dynamics will require careful management of procurement, pricing, and production strategies in the months ahead. 

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