Key Summary:

• Nearly two-thirds (64%) of electronics manufacturers report limited component and materials availability or extended lead times, with no respondents describing current conditions as readily available with excess supply.
• Supply conditions worsened in Q2 2026, with 44% of respondents reporting weaker component and materials availability compared to Q1, while only 10% saw improvement.
• Disruptions are broad and regionally varied, with memory, laminates and resins, microprocessors/GPUs, and passive components all contributing to supply-chain pressure across global electronics manufacturing.

Each month, the Global Electronics Association publishes the Global Sentiment Survey, which includes a set of special questions focused on the issues shaping our industry right now. This article summarizes the August 2026 special questions findings on component and materials availability.

The signals have been building for months. Now the numbers confirm it: the electronics manufacturing supply chain is facing renewed and measurable pressure on component and materials availability, and conditions are moving in the wrong direction.

According to the August 2026 Global Sentiment Survey from the Global Electronics Association, nearly two-thirds (64%) of electronics manufacturers from around the globe report that the components and materials they rely on are available only with limited availability or extended lead times. Not a single respondent described current market conditions as 'readily available with excess supply.' The pipeline is stretched and getting longer.

That picture gets sharper when manufacturers are asked how conditions have changed. More than four times as many respondents say market availability for components and materials worsened in Q2 2026 compared to Q1 2026 (44%) as say it improved (10%). Roughly two in five (42%) say conditions are about the same -- meaning the industry is not bouncing back. It is holding still or sliding.

Lead times are telling a similar story. More than half (53%) of survey respondents say supplier lead times for components and materials were longer in Q2 2026 than in Q1 2026. Just three percent say they shortened. For manufacturers trying to plan production schedules, manage inventory, and meet customer commitments, longer lead times do not arrive in isolation, they compound every other operational challenge already in motion.

What is driving the constraint? The survey points to several categories pulling the supply chain in different directions at once. Memory and laminates and resins each ranked as the leading sources of supply disruption (16% each), followed closely by microprocessors and GPUs (14%) and passive components (11%). The breadth of that list matters: this is not a single-component story. It is a multi-front constraint that affects manufacturers across product categories and end markets.

The regional picture adds further nuance. Laminates and resins are a significantly larger source of disruption for manufacturers in Europe, more than one in three (35%) of European respondents cited this category, compared to just six percent of North American respondents. In APAC, passive components are driving disproportionate strain, cited by one in three (33%) respondents in the region. These regional divergences are not just data points, they reflect fundamentally different supply chain exposures that require differentiated responses.

Taken together, the findings from the August 2026 Global Sentiment Survey paint a picture of a supply chain under multi-directional pressure. Availability is constrained. Lead times are extending. And the categories creating the most friction vary depending on where in the world you are operating. The industry is not in crisis, but the trend lines are worth watching closely.

Key Summary:

• Extreme heat is disrupting electronics manufacturing, supply chains, and worker productivity worldwide.
• Businesses are adapting operations with cooling measures, schedule changes, and heat resilience planning.
• Heat waves are straining power grids and data centers critical to electronics production.

by Kelly Scanlon, Senior Director of Sustainability Strategy, Global Electronics Association 

Heat waves have dominated headlines across the Northern Hemisphere this summer, and as a scientist, I've been curious about what's actually happening atmospherically, physiologically, and industrially as record temperatures intersect with the regions where much of our industry's manufacturing takes place. It's worth noting this isn't only a Northern Hemisphere story. The Southern Hemisphere had its own record-breaking heat wave during its summer months in early 2026, with Australia, South Africa, and parts of South America all high temperatures. This week's three reads span the science of heat waves, how rising heat is reshaping workforce protection ahead of a looming "super El Nino," and how extreme heat impacts the power grid that the electronics supply chain relies on to function.

Too Hot for Work: Why Extreme Heat Is a Threat to Europe's Productivity

This article reports on how record heat is forcing European employers, including factories, construction sites – and breweries --to rethink schedules, breaks, and cooling measures. New research highlighted in this article indicates that France, Italy, and Spain could collectively lose hundreds of billions in economic output through 2030 due to heat-related productivity losses. It's a grounded look at how heat resilience is becoming less of a seasonal inconvenience and more of a standing operational and economic challenge for businesses.

Stretched to the Limit: Heat Wave Prompts U.S. Electrical Grid Emergency

Did you know that in July, the U.S. Department of Energy declared a grid emergency as a heat wave pushed 160 million people under alert and forced PJM Interconnection, the regional authority that coordinates the electric grid across 13 U.S. states and Washington, D.C., to curtail power to data centers to avoid record-breaking demand and blackouts? Extreme heat doesn’t just affect the local community or factory -- it cascades through the same electrical infrastructure that data centers and electronics manufacturing depend on to keep running.

Why Temperature Records Are Being Not Only Broken but Smashed

This is a good explanation about why 2026's heat waves have shattered previous records across Europe, the U.S., and India, with climate scientists noting that records once broken by tenths of a degree are now being smashed by two or three degrees. It's a clear, globally sourced look at the physics behind a summer that's surprised even the experts who study it.

Closing Thought: Degrees of Confusion

One small mercy: please don't do the Fahrenheit-to-Celsius math yourself. The rest of the world settled on Celsius decades ago with the U.S. still holding out. Here's a converter so you can spend your brainpower on more pressing questions.

Key Summary

In the latest installment of Five Questions With…, Alison James, Senior Director for European Government Relations, discusses how geopolitics, defence demand, data centre growth, and EU policy initiatives are reshaping Europe’s electronics industry and creating new opportunities to strengthen regional manufacturing across the value chain.

What is the most important shift happening in the European electronics industry right now, and why does it matter?

From a government relations perspective, the most significant shift comes as a result of geopolitical developments. As each region seeks greater self-sufficiency in strategic areas, the significance of regional electronics manufacturing grows. In Europe we have seen this particularly in the area of defence. With the invasion of Ukraine and the imperative for the European Union to become more autonomous in defence, the electronics industry is seeing a surge in demand for this sector. It matters because, while no one would wish for an escalation of conflict, it represents an important market for regional electronics manufacturing, for our European PCB as well as our EMS industries. 

What’s one policy or market trend in Europe that the electronics industry is not talking about enough? 

The industry is perhaps talking about it, but it is important for the industry to be aware that data centres are a strong policy focus in the European Union. With the adoption of the proposed Cloud and AI Development Act in June, the EU plans to triple data centre capacity in the coming years. As the Global Electronics Association, we have highlighted that electronics capacities and capabilities are critical. There has been significant focus on the need to develop (and access) AI chips. IC-substrate as well as PCB assembly capabilities and capacities for these super advanced packages with high form factors also need to be developed by substrate, PCB and PCBA electronics manufacturing industries. The question will be where all the capabilities and capacities will be developed and to what extent the EU can build a greater measure of technological sovereignty in these areas. 

From your perspective, what gives Europe the greatest opportunity to strengthen its position in global electronics? 

As an EU Government relations professional, I of course look to the regulatory framework as an enabling framework. We have spent the last years making the case at EU level for policy initiatives which would enable Europe to strengthen its position across the value chain from silicon to system, including reinforcing our PCB, EMS, IC substrate, advanced packaging and system integration capacities and capabilities. I am very pleased that this advocacy has borne fruit to date at the EU level as we have seen the proposal for a European Chips Act 2.0 which would enable European Member States to invest in electronics manufacturing.  We highly appreciate that the European Commission listened to industry and translated this into a comprehensive approach in its proposal. This is a highly significant opportunity that must now be translated into a final text and, importantly, transposed into electronics strategies, programmes and funding opportunities in the EU Member States. In addition, we advocated strongly for specific funding for capacity building for electronics manufacturers for defence. Before the summer, the European Commission also issued a Call which would indeed enable manufacturers to apply for funding to build capacity. These frameworks are critically important in helping manufacturers to build capacities and capabilities and ultimately, of course, to strengthen Europe’s position in global electronics. More opportunities, more demand signals and more programmes to strengthen the ecosystem are needed as electronics are central to all strategic industries and to our daily lives. 

What advice would you give to professionals who want to make an impact in this industry?

In Europe I see many dedicated professionals making an impact in this industry on a daily basis.  Engagement and visibility are key. I think Europe’s electronics professionals are exceptionally dedicated to this industry and to making an impact. That they work for critical, strategic European industries likely helps. This is an industry with a cause. 

You have been directly involved in the Association’s efforts with the European Chips Act. How have Association members helped to ensure the success of these efforts, and what is next on the agenda?

Our Association members have been – and continue to be – critical to ensuring the success of our advocacy work. I can say again that we have a very dedicated industry here in Europe. They are committed to building what is needed for Europe and to delivering the high reliability, secure electronics that are needed here. Over the past years we have had a very dedicated group of companies in our European Electronics Leadership Committee who commit time and expertise, our Call to Action Coalition brings together companies across the European Union as well as National Trade Associations. We have been building and can say that members have come together to provide one voice towards the EU Institutions. We are grateful for their commitment and their trust as the EU is complex. This is always a work in progress. Legislation does not stand still and neither does the world. Our immediate challenge remains next steps for the European Chips Act to ensure it is finalized and implemented at National level in a way which translates into real programmes and funding for the industry. As the geopolitical situation continues to shift we also need to ensure that all the legislative initiatives in progress from cybersecurity rules to procurement to trade instruments come together to enable strong regional manufacturing and resilient supply chains for our critical industries. We have a strong foundation from which to continue our work. 

Key Summary

• AI materials discovery is gaining momentum as chipmakers look to ease semiconductor supply constraints.
• AI memory demand remains tight, with SK Hynix’s HBM position signaling continued pressure.
• India is building a broader semiconductor ecosystem, not just subsidizing factories.

by Carrie Sessine, Chief Communications Officer, Global Electronics Association

Three stories, one thread: where the electronics industry's next constraints are being decided.

I appreciate the chance we have to share what we're reading and watching and how these stories shape market developments and ripple through the electronics industry. I'm back again with three that stuck with me this month.

Here's the red-thread theme: the same story is playing out three times right now. Capital and policy are racing to lock down the physical building blocks of electronics: the materials, the memory, and the manufacturing. Read together, they tell you where our industry's next constraints, and next advantages, are being decided.

AI takes on the hardest problem in our industry: materials

The story: CuspAI, which calls itself a "structured search engine for physical materials discovery," raised a $450M Series B co-led by Kleiner Perkins and NEA reaching a $2.6B valuation and more than half a billion dollars raised since it launched in 2024.

Why it matters: Some of the toughest bottlenecks in semiconductor manufacturing are materials problems such as compound substrates. CuspAI is betting AI can compress decades of materials R&D into months.

The tell: AMD Ventures joined the round, and Samsung, Nvidia and Lam Research signed on to CuspAI's new "AI Materials Foundry." When chipmakers back your search engine, they're pointing straight at the constraint.

What I'm watching: CuspAI's founder says semiconductors will take up 80% of its research this year, including work to replace supply-constrained metals like ruthenium and iridium. That makes this a supply-chain story as much as an AI one.

The largest foreign listing in Wall Street history and why the drama misled everyone

The story: On July 10, SK Hynix raised $26.5B in its Nasdaq debut – the biggest-ever U.S. listing by a foreign company, edging past Alibaba's 2014 record. Its shares had already climbed roughly 229% in the first half of 2026, and the debut itself was a roller coaster: a sharp pop, a hard drop, a fast rebound.

The numbers that matter: SK Hynix holds about 58% of global high-bandwidth-memory revenue, is reportedly sold out of its 2026 memory supply, and has a national investment wave behind it. The volatility was investors repricing the gap between its Seoul and New York share prices, not doubt about the fundamentals.

What I'm watching: Nearly every analyst covering the stock rates it a buy. When a "crash" turns out to be currency math, the real signal is just how tight AI memory supply has become.

India stops subsidizing factories and starts building an industry

The story: On July 15, India's Cabinet approved Semicon 2.0, a ~$13.2B program that resets how the country builds its electronics future.

Why it matters: The old playbook threw subsidies at fabs. The new one takes equity stakes in chip-design startups and funds packaging, equipment and materials across the value chain. This is the difference between building a factory and building an industry.

The numbers: Electronics has climbed from India's 7th-largest export category in FY22 to its 2nd-largest in FY26, already topping $22.2B this fiscal year! More than a dozen chip projects are approved or underway, including Tata Electronics' ~$11B Dholera fab with PSMC. India and Singapore recently signed an MOU to formalize semiconductor supply-chain collaboration.

What I'm watching: The India–Singapore MOU. India is wiring itself – and doing so quickly – into the same supply networks our members already rely on.

As always, I'd love to know what's on your list. Email me at CarrieSessine@electronics.org and tell me more or what I’m missing.