Electronics Industry Demand Holds Steady Amid Tariff Turbulence

Electronics manufacturers are bracing for higher costs as profit pressures deepen according to IPC’s May Sentiment of the Global Electronics Manufacturing Supply Chain Report. Despite tariff concerns and rising material and labor costs, electronics industry demand is holding steady. The New Order Index expanded this month, signaling ongoing demand strength.

 

Material cost pressures remain elevated and are expected to intensify, with most electronics manufacturers anticipating further increases. Meanwhile, labor cost pressures have moderated, reaching their lowest index level on record, though the majority of electronics manufacturers continue to report higher labor costs. The Profit Margin Outlook Index fell to a low level, reflecting growing expectations of near-term pressure among manufacturers.

 

In response to special questions regarding tariff pressures, the percentage of electronics manufacturers not pulling forward shipments due to potential tariff risks has dropped from 65 percent in February to 53 percent in May 2025. This shift is most pronounced in Europe, where the share not pulling forward shipments fell nearly 40 percent (from 76 percent to 38 percent, while 19 percent now report pulling forward 26 percent–50 percent of shipments, up from zero percent as reported in the March 2025 analysis.

 

Paying for Tariffs

Shawn DuBravac, Ph.D., IPC chief economist and report author noted, “Electronics manufacturers expect more than two-thirds (68 percent) of announced tariffs will be paid by consumers.” 

 

Fifty-two percent of electronics manufacturers report they are adding a separate line item for tariff costs on invoices, while 38 percent are rolling those costs into the overall price without identifying them specifically.                              

Additional survey data show:

  • Over the next six months shipments, capacity utilization, backlogs, and orders are expected to rise, while profit margins are expected to decline.
  • Electronics manufacturers report tariff uncertainty is delaying investment or sourcing decisions (53 percent), and half of firms report greater-than-expected disruption—yet views are split on whether tariffs will be reversed (48 percent) or become permanent (48 percent).
  • Nearly two-thirds (64 percent) of electronics manufacturers indicate they have not started or increased efforts to secure manufacturing capacity in the past 60 days.
  • Over the next six months, profit margins are expected to rise more so for firms in APAC than for those in North America.
  • Electronics manufacturers expressed greatest concern regarding U.S. trade policies as it relates to overall economic impact (47 percent) and Impact on Business Operations (32 percent).                     

These results are based upon the findings of IPC’s Current State of Electronics Manufacturing Survey, fielded between April 15 and April 30, 2025.

Read the full report.

A Technology Solutions Webinar Series for e-Mobility Electronics Hardware Reliability

Date
-

We are delighted to welcome Adrian Harea of Schaeffler and Michael Schleicher of Semikron-Danfoss to lead a discussion on DfM for EV's high-voltage / high-power applications.

The panel will share techniques for addressing the complexity of components, increased integration, 3D assembly and working with heavy assemblies. They will touch on the constraints of final systems that impact size, weight, configuration and shape. Balancing easy to manufacture with cost and quality is a key backdrop for the discussion. Panelists will present board level and final assembly DFM considerations. 

Our "Road to Reliability" series aims to bring industry leaders together to discuss the hurdles in achieving reliability for new e-mobility technology. We will examine reliability drivers, technology applications, and target lifecycles.

Join us for this informative session to better understand technology gaps, broaden your professional connections, and uncover strategies for meeting reliability objectives.

Moderator: Stanton Rak, SF Rak Company

Online Event

3000 Lakeside Dr.
Suite 105N
Bannockburn, IL 60015
United States

Online Event

Online Event
3000 Lakeside Dr.
Bannockburn, IL 60015
United States

Electronics Manufacturing & Packaging Symposium (EMPS) 2025

Date
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Electronics Manufacturing & Packaging Symposium (EMPS) 2025

 

Location: 

ESA/ESTEC 

Noordwijk, the Netherlands

 

Date: 6–9 October 2025

 

Technical Presentations 

Professional Development Courses

Exhibition

 

The symposium, organised by the European Space Agency in partnership with the Global Electronics Association, will focus on the latest developments in printed circuit boards, electronic assembly, and packaging technologies. While space applications remain a core focus, the event also covers high-reliability market segments such as defense, automotive, medical, and data infrastructure, which are central to Europe’s electronics manufacturing industry.

Region
Space Research and Technology Centre of the European Space Agency (ESA/ESTEC)

Keplerlaan 1
2201 AZ Noordwijk-Binnen
Netherlands

Space Research and Technology Centre of the European Space Agency (ESA/ESTEC)

Space Research and Technology Centre of the European Space Agency (ESA/ESTEC)
Keplerlaan 1
Noordwijk-Binnen, 2201 AZ
Netherlands

A Deep Dive of Applying AI in Electronic Manufacturing

Remote video URL

With AI rapidly transforming smart manufacturing, the May 14, 2025 webinar examined how electronics manufacturers can effectively integrate Computer Vision AI and Generative AI to boost quality, efficiency, and cost savings. The session covered real-world use cases, reference architectures, and key considerations such as data readiness, security, and ROI. Insights were supported by technical papers from IBM and iNEMI.

Author(s)
Feng Xue
Resource Type
Webinar
Event
Webinar

The AI Advantage in PCB Design: Techniques and Trends

Remote video URL

This February 12, 2025 webinar, led by John Watson, explored the growing role of artificial intelligence in revolutionizing PCB design. The session demonstrated how AI is improving speed, precision, and efficiency—from circuit optimization to managing complex layouts. Real-world examples showed how companies are leveraging AI to overcome design challenges, reduce costs, and accelerate development. The webinar also discussed adoption hurdles and future possibilities, including AI-driven automation and integration with AR/VR technologies.

Author(s)
John Watson
Resource Type
Webinar
Event
Webinar

Designing for Success: How DFM, DFT, and DFA Impact PCB Production

Remote video URL

On January 22, 2025, this webinar introduced key PCB design principles—Design for Manufacturing (DFM), Design for Test (DFT), and Design for Assembly (DFA). Attendees learned how applying these practices can reduce costs, improve reliability, and streamline production. The session also covered relevant IPC standards like IPC-2221 and IPC-A-610, with real-world examples highlighting the impact of good design decisions.

Author(s)
John Watson
Resource Type
Webinar
Event
Webinar

Assessing Electronics with Advanced 3D X-ray Microscopy Techniques

Remote video URL

This December 11, 2024 webinar showcased cutting-edge approaches for inspecting electronic assemblies using 3D X-ray microscopy, nanoscale imaging, and deep learning. Attendees learned how tools like DeepScout and advanced DL algorithms enhance image quality, support failure analysis, and streamline quality inspections across a wide range of electronic components and assemblies.

Author(s)
Herminso Villarraga-Gómez, PhD
Resource Type
Webinar
Event
Webinar