October 2025 — Taipei

At IMPACT 2025, Asia-Pacific’s leading conference for microsystems, packaging, and circuit technology, discussions on component-to-system-level integration took center stage. Co-organized and supported by the Global Electronics Association, the event brought global industry leaders together to explore how packaging innovations are shaping the AI era. A special session, titled "Component to System-Level Integration," gathered experts from AMD, ASE, Kinsus, and Wistron to examine how packaging technologies are evolving to meet the growing complexity of AI systems—and why developing shared guidelines and standards has become a pressing priority.

This year’s conference theme, “Energy-Efficient AI: From Cloud to Edge,” reflects how the hardware behind AI is changing. As systems move toward a hybrid cloud-edge model, with edge computing taking on tasks such as real-time processing and inference, the challenge lies in creating high-performance, low-power solutions that can scale across diverse applications.

Semiconductor packaging, once seen primarily as a manufacturing step, has become a critical enabler of system integration and miniaturization. Integrating multiple chips and functions into compact, power-efficient packages and modules for high-performance computing, communication, and power applications demands a coordinated approach across the supply chain. That coordination, however, depends on a shared set of guidelines and standards that are still evolving.

The Component to System-Level Integration session, organized and chaired by the Global Electronics Association, was led by Devan Iyer, the Association’s Chief Strategist for Advanced Electronic Packaging. With more than 35 years of experience spanning Texas Instruments, Amkor, and Infineon Technologies, Iyer opened the discussion by emphasizing that electronic packaging acts as a key enabler at both the component and system levels—and highlighted critical gaps in today’s guidelines and standards.

The presentations underscored the needs, trends, and challenges shaping the future of packaging, as well as possible paths forward. Speakers discussed the need to update existing standards and develop new ones in the context of emerging technologies, covering materials, substrates, and PCBs through design, assembly, and reliability at both the component and system levels. 

Highlights included:

• Raja Swaminathan (AMD) — discussed system-level architecture and its role in next-generation AI performance.
• C.P. Hung (ASE R&D Center) — explored heterogeneous integration in data center applications.
• Dennis Lin (Kinsus) — examined substrate and PCB innovations for chiplet packaging.
• Ander Hsieh (Wistron) — shared strategies to improve large BGA assembly reliability.

Iyer summed up the issue succinctly: “As AI applications grow explosively, packaging technology has evolved from a supporting role to a critical driver of system performance. However, there are opportunities to update existing standards and develop new guidelines and standards at the component, module, and system levels.”

As one of the co-organizers of IMPACT 2025, the Global Electronics Association continues to play a pivotal role in driving the global conversation around advanced electronic packaging. The Association is collaborating with manufacturers, designers, and technology suppliers to define a standardized framework for packaging innovation. The goal goes beyond compliance—it’s about establishing a common technical language that enables efficient collaboration, shortens development cycles, and reduces duplication across the supply chain.

Through these efforts, the Association helps advance new technologies while maintaining the integrity of the global electronics supply chain. By providing data-driven insights and guidance, it supports informed decisions that enhance the quality, reliability, and consistency of electronic products worldwide.

The conversations at IMPACT 2025 underscored a broader industry shift: advanced electronic packaging is now central to how AI hardware evolves, and the pace of that evolution will depend on how quickly the industry aligns on common standards. By fostering open technical exchange and harmonization, industry groups and technology leaders are laying the foundation for a more connected and agile global supply chain.

As the conference continues alongside the TPCA Show (October 22–24), one message stands out: the next leap in AI performance won’t come from a single innovation—it will come from shared standards that make seamless integration possible at every level of the system.

By Kelly Scanlon, lead sustainability strategist, Global Electronics Association

Evolve, the Global Electronics Association’s Sustainability initiative, made an impact and crossed a milestone with its first-ever event at Climate Week NYC. I joined an incredible program that highlights circularity in electronics manufacturing, demonstrating our sector’s growing commitment to overcoming barriers and fostering a more sustainable future.

The electronics industry is at a critical juncture in terms of sustainability, and circularity is one of the key areas where we can make the most significant impact. I was honored to participate in the panel “At Power On: Climate and Circularity in Electronics,” alongside other sustainability leaders from Jabil, Flex, and Panasonic. Together, we explored how to:

• Tackle the toughest challenges to scaling circularity
• Learn from early adopters
• Showcase real-world innovations making electronics more sustainable

Our discussion acknowledged the numerous barriers to circularity, including the need for high-quality data, scalability, tariffs, and geopolitical tensions, among others. What really stood out was our shared understanding that no single organization can solve these issues on its own. Progress depends on partnership, education, storytelling, and transparency.

For me, this panel helped move the conversation forward in a meaningful way. Sharing information and raising awareness are necessary, and collaboration is critical. We’re moving beyond the “low-hanging fruit” and into the complex problem-solving that sustainability demands. These are not challenges that can be solved in isolation; they require cross-functional teamwork and more open discussions like the one we had in New York.

One of my strongest convictions is that the people who design, build, and work directly on products will be the ones to drive true change. Sustainability solutions won’t come just from the top; they’ll come from those in the trenches who know the products inside and out.

 We face a choice as demand for electronics grows: reduce quantity or improve quality. I believe in the latter. We must focus on recycling, repurposing, repairing, and making better products. Our goal should be to create electronics that contribute positively to solving global challenges, rather than adding to them.

Attending Climate Week reinforced for me just how important communication is. When dealing with complex products, intricate supply chains, and diverse global players, conversations can become tangled. Many people are already doing the right things, yet they often fail to communicate those efforts effectively. Measurement is difficult, and data can be unclear.

That’s why our participation in Climate Week was so valuable. It provided Evolve with the platform to initiate more in-depth discussions and connect with others working toward the same goals. We left energized, informed, and ready to continue working together to make electronics more sustainable.

For a deeper dive into the Evolve program, visit: Evolve | electronics.org

by Diana Radovan, Director, Sustainability Policy, Global Electronics Association

The Global Electronics Association welcomes the timely adoption (13 October) of the position on the omnibus package for sustainability reporting and due diligence by the European Parliament’s Legal Affairs Commitee (JURI). Overall, we think that this position is going in the right direction for electronics. We welcome the voluntary approach to sector-specific standards and the removal of EU civil liability. 

The timely adoption allows trialogue negotiations to start as planned, at the end of October. Regulatory certainty -- including a timely implementation of omnibus requirements by Member States -- is needed to ensure business continuity and investment certainty. 

The Global Electronics Association will continue to advocate for a simplification that is effective and useful for businesses and for achieving environmental and social objectives that aren’t just a box-ticking exercise but have a real impact. 

For more information, contact me at DianaRadovan@electronics.org. 

By Diana Radovan, Sustainability Policy Director, Global Electronics Association

Diverse sectors came together in Amsterdam on Oct 6-7 to discuss hot topics around sustainability, at the intersection of regulation, strategy, and competitiveness. Despite the diversity of industries and stakeholders present in the room (AI startups, investors, electronics, clean energy, fashion, pharmaceuticals, philanthropies, etc.), sustainability challenges and opportunities shared a similar vocabulary, and it was easy to find common ground and learn from each other’s experiences. Following the interesting roundtable discussions at the Chief Sustainability Officers (CSO) club on Monday, October 6, plenary panels, interviews, and networking sessions took place the next day, including a talk by and a conversation with the Mayor of Amsterdam, Femke Halsema. 

My key takeaways from the event can be grouped into three main areas: 

Focus on collaboration and real impact

We cannot afford to quarrel over symbolic issues, we need to be pragmatic, by addressing the things that really matter, and avoid polarised speech. We have to work together in Europe and internationally

Circularity strategy and terminology

Circularity works if appropriate systems are put in place from the very beginning. In this context, systems thinking is key. Circularity fails in a linear world. Efficiency and scale up are possible if approached with a sustainability mindset. More secondary raw materials are necessary in the products we are building. In addition, those of us who are sustainability professionals may need to refine our terminology when pitching our circularity business case to CEOs, because ‘circularity’ does not necessarily sound like business growth: circularity can be seen and framed as an important business opportunity, involving less waste and less resources. 

Sustainability as a business proposition

Nowadays, in light of competitiveness challenges and geopolitical movements, sustainability professionals need to build a business case, not only a moral case, in their organizations, in order to be effective in their efforts. Many participants were of the opinion that smart regulations can be an opportunity for businesses to measure risks and build a better business. Nonetheless, sustainability isn’t always driven by regulation and sustainability regulations don’t always mean more sustainability, sometimes they just mean more reporting. Sustainability regulations often remain, however, impractical and fragmented, and more needs to be done on the path towards their improvement, which is what we, at the Global Electronics Association, continue to advocate for. 

Panelists and participants may have had, at times, different perspectives in their approach to sustainability and reaching sustainability goals, but ultimately, what I heard at this event was a very pragmatic call-to-action, and moving away from older, idealistic views on sustainability. We cannot be sustainable and support the digital and green transition if we ignore the high regulatory reporting burden and the acute need to link sustainability efforts to business outcomes. 

We need to act now, not later. 

To learn more about the event, contact me at DianaRadovan@electronics.org. 

Welcome to Industry Intelligence Insights, your monthly guide to the trends shaping global electronics manufacturing. I’m Thiago Guimarães, Director of Industry Intelligence at the Global Electronics Association.

This month’s market analysis from Chief Economist Shawn DuBravac, unpacks new rate cuts and shifting monetary paths in Europe and Asia.

We also highlight new Book-to-Bill data showing steady EMS demand and mixed PCB activity, and the latest Global Sentiment Report, where firms report persistent cost pressures but improving productivity and utilization ahead.

Plus, explore two new reports: The Software Ecosystem Powering Electronics Manufacturing and The New Transatlantic Trade Agreement, which examine how technology and trade are reshaping competitiveness across regions.

Read on for the insights driving the industry forward.

Thiago Guimarães 
Director of Industry Intelligence, Global Electronics Association

Market Analysis from Global Electronics Chief Economist Shawn DuBravac

The Fed’s long-anticipated rate cut finally arrived. Policymakers trimmed rates by 25 basis points in September, taking the federal funds range to 4.00% to 4.25%. Chair Jerome Powell said risks look more balanced and more cuts are likely in the months ahead. The aim is to give growth a nudge while keeping inflation expectations anchored. But that inflation fight is not over. August CPI ran at 2.9% year over year, with core at 3.1%. Both ticked up from July, a reminder that getting all the way back to 2% will take time.

The labor market cooled further in August, with nonfarm payrolls adding just 22,000 jobs and the unemployment rate climbing to 4.3%. Manufacturing was particularly weak, shedding 12,000 jobs during the month. Survey data confirmed the slowdown, with the S&P Global flash Manufacturing PMI easing to 52 in September from 53 in August. Still, some resilience remains: durable goods orders surged 2.9% in August, though shipments dipped 0.2%, suggesting uneven demand momentum.

Across the Atlantic, the European Central Ban kept rates unchanged in September, leaving the deposit rate at 2% and the main refi at 2.15%. With euro area inflation at 2.1% in August, officials sounded comfortable but noncommittal about what comes next.
Manufacturing conditions showed renewed weakness in Europe as the HCOB flash Manufacturing PMI slipped back below the 50 mark in September to 49.5, signaling contraction. Production data painted a more nuanced picture. Industrial output in July rose 0.3% month-over-month, driven by durable goods.

China’s manufacturing sector continued to show divergent signals. The official NBS manufacturing PMI came in at 49.8 in September, a sixth straight contraction but slightly better than August. The private Caixin gauge told a different story, rising to 51.2, its quickest pace since March. The PBOC left loan prime rates unchanged in September, while Beijing mapped out roughly ¥500 billion in targeted financing to speed up investment projects. One clear positive was profits. Industrial earnings jumped 20.4% year over year in August, lifting year-to-date profits to a small gain after earlier declines.

Around the rest of Asia, the Asian Development Bank nudged its 2025 growth outlook for developing economies down to 4.8%, citing tariffs and trade uncertainty. Japan struggled, with August industrial output down 1.2% and the au Jibun Manufacturing PMI slipping to 48.4 in September. The Bank of Japan held its policy rate at 0.5% and kept a close eye on wages and prices. India remained the regional standout. GDP grew 7.8% year over year in the April to June quarter, and manufacturing stayed strong even as the HSBC/S&P Global PMI eased to a still-hearty 58.5 in September.
 

Book to Bill

PCB: North American PCB Industry Sales Up 12.8 Percent in August

The Global Electronics Association has announced the August 2025 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 0.98.

EMS: North American EMS Industry Shipments Down 1.4 Percent in August

The Global Electronics Association has announced the August 2025 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.26.

Global Sentiment

The Current Sentiment of the Global Electronics Manufacturing Supply Chain September 2025

According to the September 2025 Global Sentiment Report, firms report rising material and labor costs that are straining margins and slowing hiring, even as demand and order flow remain solid. Over the next six months, executives expect cost pressures to persist but anticipate gradual improvement in activity, utilization, and margins as pricing resets and productivity gains take hold.

Recent Reports

The Software Ecosystem Powering Electronics Manufacturing

In November 2024, the Global Electronics Association surveyed EMS and OEM companies to gain a deeper understanding of the software tools that shape their operations. The findings reveal a complex landscape: there is no one-size-fits-all approach, with priorities varying by tool type and function.

The New Transatlantic Trade Agreement

The future of Europe’s electronics industry is being reshaped by a single deal: the new transatlantic tariff agreement. Starting August 1, 2025, most European electronics exports to the U.S. will face a unified 15% tariff, adding an estimated €9.8 billion in annual duties. This new paper from the Global Electronics Association examines how the agreement alters competitiveness,  raising costs for U.S. importers and consumers, disadvantaging European firms, and tilting the field toward competitors in Mexico and Asia.
 

Upcoming Events:

• October 22-24, 2025 – Evertiq Expo Warsaw 2025 – Christoph Solka will present on the European EMS industry