The main pain point: a perfect storm of costs and visibility

The number one pain point for industrial buyers in 2026 is not an outright shortage like 2021-2022. It is the unpredictable volatility across pricing, lead times, and geopolitics simultaneously, making any planning extremely difficult.

Lead times climbed steadily for 12 months before peaking with a dramatic spike in March 2026, a 67% increase in a single month between February and March, with lead times reaching 40 weeks on certain components. The market had never truly normalized after the post-Covid shortage cycle.

What makes the situation particularly toxic:

When tariffs are announced, threatened, or merely rumored, rational buyers pull purchases forward. This demand compression reduces available stock and drives spot market premiums up almost overnight. Components that were stable at book price for much of 2025 have seen spot market premiums multiply by 2 to 5 times, and even higher in some categories.

The most significant hidden pain point is not price itself. It is part identity and data mismatch: teams waste hours confirming that the reference listed in the BOM is actually the same part a supplier is quoting.

Only 18% of companies have achieved end-to-end visibility across their supply chain. For the majority, the reality looks like fragmented email threads, missed messages due to time zone differences, and the constant fear that something important has slipped through the cracks.

The hardest components to source (excluding memory)

SiC MOSFETs and IGBTs: maximum criticality

SiC MOSFETs, a key technology for electric vehicles and onboard chargers, are in a critical situation at ON Semiconductor. Demand from automotive manufacturers is outpacing available capacity. EV procurement teams must treat SiC allocation as a strategic priority through at least the first half of 2026. Lead times for AEC-Q100 qualified 32-bit MCUs have reached 52 weeks or more across several families. These parts are expected to remain difficult to source through 2028.

Industrial and automotive MCUs on mature nodes

The MCU price war ended in 2025. STMicro, TI, NXP, and Infineon announced price increases effective April 2026, with TI reaching up to 85% increases on certain part numbers. Foundries on mature nodes (40nm to 180nm) critical for industrial MCUs are sold out for all of 2026. STMicro MCU lead times had already reached 55 weeks and the situation is likely to worsen.

Analog and power management components (PMIC, op-amps, ADC/DAC)

The most acute pressure is concentrated on components manufactured on older process nodes, from 90nm to 350nm. These nodes produce analog ICs, power management chips, discretes, and interface chips that appear on virtually every industrial BOM. Precision op-amps, ADCs, DACs, and voltage references used in industrial sensors and medical equipment are seeing a return to allocation. Analog Devices applied 15% price increases across its entire catalog, and 30% on approximately 1,000 military-grade references.

GaN: emerging but already constrained

Chinese export controls on gallium and germanium, implemented in mid-2025, triggered alarm bells as China dominates these supply chains. This adds supply risk for compound semiconductor components such as GaAs and GaN devices.

High-speed connectors and specialty MLCCs

High-speed connectors and multilayer ceramic capacitors (MLCCs) are experiencing measurable tightening as hyperscale data center construction accelerates. Sourcing teams working on data center, industrial computing, or AI-edge applications should proactively build buffer stock in these categories. Murata announced increases of 15% to 35% on passives for AI servers. KEMET (Yageo) raised polymer tantalum capacitor prices by 15% to 30% in Q1 2026.

Legacy logic components and end-of-life parts

Many 74xx, CD4000, and older interface families are end-of-life or severely backordered. Tantalum capacitors, high-voltage MLCCs, and polymer aluminum capacitors critical for defense and aerospace continue to face shortages.

A special case: Nexperia

Nexperia’s wafer supply has been halted since October 2025 following export control measures, meaning there is no raw material feed for new production. The company has provided no confirmed timeline for supply resumption. For teams with Nexperia-sourced discretes, logic ICs, or transistors in their BOM, the practical response is to pursue approved alternative sourcing without delay.

Summary

The strategy that sets successful teams apart is anticipating 12 to 18 months ahead, continuously auditing the BOM, qualifying second sources before they are needed, and abandoning just-in-time practices for critical part numbers.

Are some of these components on your BOM?

If you are facing allocation issues, extended lead times, or unexpected price increases on any of the components mentioned in this article, ARTRONIK can help. We specialize in sourcing hard-to-find, allocated, and end-of-life electronic components through our global network of franchised and pre-approved suppliers.

Fill in the quote request form on this page and our team will get back to you quickly with availability and pricing.

An Unprecedented Tariff Landscape

January 2026 marked a major turning point. The United States introduced a 25% tariff on a targeted category of advanced semiconductors, invoking national security grounds under Section 232 of the Trade Expansion Act. Effective from 15 January, the measure primarily targets processors designed for artificial intelligence and high-performance computing. Exemptions were built in for civil research, local infrastructure projects, and start-ups, reflecting a logic of protecting domestic American innovation rather than applying blanket taxation.

But the movement does not stop there. Tariffs of up to 145% on Chinese semiconductors, combined with Beijing’s retaliatory tariffs of up to 125% on American technologies and raw materials, have sent global production costs soaring. According to the most pessimistic projections, if these policies persist, the global semiconductor market could contract by as much as 34% by 2026-2027. Meanwhile, tariffs on steel, aluminium, and copper under Section 232, as well as Section 301 duties on Chinese goods, continue to apply regardless of recent diplomatic developments.

For industrial buyers, the consequences are concrete and immediate. Cost structures have changed dramatically compared to two years ago. Microcontrollers for PLCs, sensors for monitoring systems, processors for Edge gateways, and power components for power supplies — wherever China is identified as the country of origin — have all become significantly more expensive.

Reshaping Alliances: The Rise of “Pax Silica”

In response to this instability, the United States has sought to structure a bloc of trusted suppliers. This is the purpose of the initiative known as “Pax Silica”, launched to secure semiconductor and AI supply chains from raw material extraction through to data centre infrastructure. In January 2026, Qatar and the United Arab Emirates joined the coalition, alongside Japan, South Korea, Singapore, Australia, the United Kingdom, the Netherlands, and Israel. India is expected to be invited to join as a full member in the coming months.

The European Union finds itself in a delicate position with regard to this arrangement. The European Commission is currently exploring the terms of its participation in Pax Silica. However, several member states, France foremost among them, have expressed reservations: concerns about governance too heavily centred around American interests, and fears of unilateral technological over-dominance. This debate illustrates the deep tension Europe faces — it must simultaneously preserve its strategic autonomy while avoiding isolation in a world where technology blocs are increasingly closing ranks.

Europe’s Response: Between the Chips Act and Reclaimed Sovereignty

Europe has not stood still. The European Chips Act, which came into force in September 2023 with a budget of €44 billion, set the objective of bringing the EU’s share of global semiconductor production back to 20% by 2030. Results have been mixed: the strategy has partially delivered but is unlikely to meet its initial targets. The European Semiconductor Industry Association (ESIA) is now calling for a Chips Act 2.0 to correct the shortcomings of the original plan, with stricter supply chain criteria and the explicit exclusion of suppliers deemed high-risk.

In February 2026, the EU invested €700 million in NanoIC, the largest pilot line under the European Chips Act. In parallel, Chips Act 2, expected to be published later in 2026, should introduce stronger provisions on component traceability and alignment with the AI Act for high-risk AI chips. The NIS2 cybersecurity directive adds a further layer of obligations for semiconductor manufacturers, in a context where digital resilience has itself become a matter of national security.

Industry Players Adapt

Faced with this reshaping of the landscape, major industrial players have begun making structural decisions. ABB and Siemens are evaluating the nearshoring of power electronics assembly to Mexico and Eastern Europe, both of which are more favourable jurisdictions under the USMCA framework. Texas Instruments and Infineon have announced capacity expansions in the United States and allied countries, although meaningful industrial volumes are still several years away. EMS providers — notably Flex and Celestica — have relocated portions of PCB and power module assembly from China to Vietnam and other South-East Asian countries.

On the chip manufacturing side, TSMC, Samsung, and their peers — acutely aware of the risks of their dependence on the American market — have acknowledged the need to invest on US soil in order to preserve their access to that strategic market. Capital expenditure on 300mm fab equipment is projected to reach $136 billion in 2026 and $140 billion in 2027. China is leading the charge with over $100 billion invested, followed by South Korea ($81 billion) and Taiwan ($75 billion).

What This Means for Component Buyers and Distributors

For electronic component procurement professionals, the geopoliticisation of the supply chain demands a thorough review of purchasing strategies. Lean approaches built around single sourcing and short-term stock optimisation showed their limits during the shortages of 2021-2022. The lesson has been learned: resilience is now worth as much as efficiency.

In practice, this translates into the geographical diversification of supply sources, the qualification of alternative suppliers capable of absorbing a supply disruption, the design of modular products that allow component substitution without starting from scratch, and the use of digital twins and data analytics to anticipate supply tensions before they escalate into shortages.

At Artronik Components, we monitor these developments in real time in order to adapt our stock levels, supplier partnerships, and procurement recommendations accordingly. The ability to anticipate geopolitical and tariff pressures has become, alongside quality and lead times, a key criterion of the value delivered by a specialist distributor.

Conclusion

Tariffs and the geopolitics of semiconductors are no longer subjects reserved for diplomats and economists. They have become part of the daily reality for engineers, buyers, supply chain managers, and project leaders. In a market where chip demand is expected to grow by 29% by the end of 2026, driven by AI, electric vehicles, and connected industry, the question is no longer whether geopolitics will affect your supply chains — it already does — but whether you are ready to respond.

Sources

Atradius, Electronics and ICT Sector Trends, January 2026. https://atradius.fr/actualites-et-presse/reports/tendances-du-secteur-electronique-et-tic-janvier-2026

IT Social, The United States Imposes 25% Tariffs on Certain Advanced Semiconductors, January 2026. https://itsocial.fr

StartUs Insights, Top 10 Electronics Manufacturing Trends 2026, March 2026. https://www.startus-insights.com/innovators-guide/emerging-electronics-manufacturing-trends/

StartUs Insights, Top 10 Semiconductor Trends in 2026, February 2026. https://www.startus-insights.com/innovators-guide/semiconductors-trends-innovation/

Procurement Pro, Tariffs and industrial semiconductors in 2026, April 2026. https://procurementpro.com/tariffs-and-industrial-semiconductors-in-2026/

BISI, US-Led Tech Supply Chain Alignment “Pax Silica”, January 2026. https://bisi.org.uk/reports/us-led-tech-supply-chain-alignment-pax-silica

Agence Europe, France Requests More Time on Pax Silica, March 2026. https://agenceurope.eu

Investing.com / Bloomberg, EU Considers Joining US-Led Technology Alliance, May 2026. https://fr.investing.com

European Commission, European Chips Act, updated 2026. https://digital-strategy.ec.europa.eu/fr/policies/european-chips-act

Tech Insider, Chips Act 2 Europe 2026: Report, Issues and Analysis, March 2026. https://tech-insider.org/fr/chips-act-2-europe-semi-conducteurs-souverainete-2026/

Institut Montaigne, Semiconductors and European Preference: Lessons from the Sino-American Rivalry, March 2026. https://www.institutmontaigne.org/expressions/semiconducteurs-la-preference-europeenne-face-la-chine-et-aux-etats-unis

Design News, Navigating Tariffs in 2026: Key Insights for Engineers, March 2026. https://www.designnews.com/electronics/navigating-tariffs-in-2026-key-insights-for-engineers-product-managers-in-the-electronics-industry

Symmetry Electronics, Navigating the Electronics Industry in 2026 and Beyond, February 2026. https://www.symmetryelectronics.com/blog/navigating-the-electronics-industry-in-2026-and-beyond/

IDC, Semiconductor Market Forecast 2026: The AI Supercycle Arrives, April 2026. https://www.idc.com/resource-center/blog/semiconductor-market-to-surge-past-the-trillion-dollar-threshold-ai-infrastructure-drives-market-growth/

Texas Instruments: An Unprecedented Two-Wave Price Offensive

Texas Instruments was the first to pull the pricing lever, and it did so with a scale rarely seen in the analog market.

First wave — Q3 2025: More than 60,000 part numbers were affected by increases ranging from 10% to over 30%. The move sent a strong signal to the entire market: after two years of aggressive price competition in distribution channels, TI was making clear it intended to restore long-term profitability.

Second wave — April 1, 2026: A new, more targeted round of increases hit digital isolators, power management ICs, and industrial and automotive components. Adjustments this time ranged from 15% to as high as 85% on select part numbers — a ceiling that caught the market off guard.

TI’s logic is consistent with its broader industrial strategy: the company has invested heavily over the past several years in new 300mm fabs in the United States. These price increases are partly designed to absorb the depreciation on those assets and restore margins that were compressed during the 2023–2024 down cycle. This is not a reaction to an immediate supply shortage — it is a deliberate, long-term repositioning of TI’s pricing policy.

NXP: A Second Price Adjustment Effective June 1, 2026

NXP took a measured and direct approach. In an official letter dated May 1, 2026, sent to its customers, the company announced price adjustments effective June 1, 2026, citing inflationary cost pressures across several areas it explicitly describes as “beyond our control.”

The factors officially cited by NXP are:

• Raw materials: Rising procurement costs on key input materials
• Energy: Increased operational costs across the manufacturing chain
• Labor: Wage inflation in production regions
• Logistics: Higher transportation and distribution costs
• Supplier inputs: Upstream cost pressure passed through by subcontractors and equipment suppliers

Notably, NXP provides no overall percentage figure in its letter. Part-specific pricing details will be communicated directly by NXP account managers to each customer individually. This deliberately tailored approach contrasts with the broader public announcements made by TI or ADI, and reflects the highly segmented nature of NXP’s portfolio (automotive, industrial, IoT).

For affected buyers, the recommended course of action is to proactively reach out to your NXP account manager before June 1 to obtain the specific pricing grid for your part numbers and assess the impact on your production costs.

The Rest of the Industry: A Wave That Now Covers the Entire Market

The movement initiated by TI has spread across the industry within just a few months. Here is a summary of the main price increases announced:

Analog Devices (ADI) — effective February 1, 2026 Full product line adjustment: 10–15% for standard commercial-grade products, approximately 15% for industrial-grade, and up to 30% on nearly 1,000 military-spec part numbers (suffix /883).

STMicroelectronics — effective April 26, 2026 ST informed customers of increases citing rising material costs from its suppliers, along with higher energy, logistics, and OSAT capacity costs. Specific percentages by product line have not been made public.

Infineon — effective April 1, 2026 Price increases announced on a selection of power devices and integrated circuits. Details by part number communicated to customers individually.

ON Semiconductor (onsemi) — effective April 1, 2026 Price adjustments on certain products, in line with the broader industry trend.

Panasonic — effective February 1, 2026 Increases of 15–30% on 30 to 40 tantalum capacitor references, driven by rising material costs.

Omron — effective February 7, 2026 Increases of 5–50% across PLCs, HMIs, robotics, relays, sensors, and switches.

Intel & AMD — March and April 2026 Both CPU giants have notified customers of increases across their full processor lineups, in the range of 10–15%.

What Is Driving This Industry-Wide Surge?

Several structural factors are converging to create the conditions for these coordinated price increases:

Raw materials under pressure. Copper prices have risen more than 35% year-over-year. Aluminum, palladium, and silver — all critical to chip packaging — have followed similar trajectories.

Foundries running at capacity. SMIC and Hua Hong are reporting utilization rates above 95%. TSMC has raised prices on 3nm and below nodes by 3–10% for 2026, with similar pressures on mature nodes. Vanguard, PSMC, and UMC are planning 10% increases by Q2 2026.

AI as an unexpected demand driver. AI infrastructure growth is now pulling demand well beyond GPUs: power conversion components, signal chain, connectivity, industrial and automotive electronics are all benefiting from this dynamic — and it is giving suppliers the confidence to rebuild pricing power across broader portfolios.

Inventory cycle turning. After two years of channel oversupply, stock levels are normalizing. Buyers who had been able to leverage competition to secure floor pricing now find themselves in a significantly weaker negotiating position.

What This Means for Your Procurement Strategy

This wave of price increases is unlikely to be an isolated event. It marks the beginning of a medium-term repricing cycle across the analog, automotive, and industrial semiconductor segments. A few actions worth taking now:

• Audit your BOM to identify the TI, NXP, ADI, Infineon, and ST part numbers most exposed to increases, particularly in industrial and automotive product lines.
• Review your procurement schedule on active projects: low-cost channel inventory is disappearing fast following the price announcements, as distributors have already begun revaluing their positions.
• Get ahead of lead times: saturation of 8-inch foundry capacity may create allocation pressure on certain families of analog components and MCUs.
• Diversify your sources: where qualified equivalents exist, identify second sources for the part numbers with the highest budgetary impact.

Sources: Official NXP Semiconductors letter dated May 1, 2026; TrendForce, Semicone Electronics, FTC Electronics, 24/7 Wall St., Manufacturing Dive, Utmel — March/April 2026. Price increase percentages (except ADI and TI Q3 2025) are sourced from distributor communications and specialist trade media; cross-reference with official manufacturer notifications before making procurement decisions.

Founded in 2007 in Shenzhen, China, SUJOR — Shenzhen SUJOR Energy Technology Co., Ltd. — is a manufacturer specializing in the design and production of custom lithium batteries. With over 15 years of experience, the company has established itself as a trusted partner for industrial clients worldwide, from North America to Europe, Japan, and South Korea.

Its customer base includes leading names such as Huawei, Omron, Emerson, Mindray, Haier, and Xiaomi — references that speak to an exceptionally high standard of industrial requirements.

What This Means for Our Customers

By adding SUJOR to our portfolio, Artronik Components is now able to offer:

• Short lead times — typically 2 to 6 weeks, thanks to direct access to the manufacturer.
• Competitive pricing — by working directly with SUJOR, we eliminate unnecessary intermediaries.
• Full customisation — battery packs tailored to your exact voltage, capacity, connector, casing and software requirements.
• Compliance confidence — all the certifications your purchasing and quality teams need, ready to hand.

Whether you are facing allocation issues, looking to qualify a new battery supplier, or need a bespoke power solution for a demanding application, we are here to help.

A Complete Range of Professional Batteries

SUJOR offers five product families, each engineered to meet specific technical constraints:

1. Lithium Polymer Battery (LiPo) SUJOR’s LiPo batteries are available in several sub-ranges: high energy density, high voltage, high drain, and high/low temperature versions. Their ultra-flat form factor and light weight make them ideal for connected devices, drones, wearables, and mobile terminals.

2. 18650 Lithium-Ion Battery The 18650 cylindrical format is an industrial standard. SUJOR offers multiple capacities — from 2,200 to 3,300 mAh — covering applications ranging from portable lighting to field equipment.

3. Custom Li-Ion Packs Multi-cell assemblies configurable in voltage and capacity (e.g. 11.1 V / 12 V / 18.5 V), these packs address the needs of industrial robots, IoT equipment, outdoor lighting, and medical devices.

4. LiFePO4 Battery (Lithium Iron Phosphate) Recognized for their exceptionally long cycle life (up to 2,000 cycles and beyond) and enhanced safety, SUJOR’s LiFePO4 batteries are available in 12 V from 100 Ah to 200 Ah. They are ideally suited for energy storage, electric vehicles, and RV applications.

5. NiMH Batteries and Packs A proven rechargeable technology, SUJOR’s NiMH packs cover a wide voltage range (2.4 V to 8.4 V) for applications such as robotic vacuum cleaners, emergency lighting, and gaming controllers.

Key Benefits

• Solid expertise: over 15 years in industrial battery manufacturing
• Full customization: form factor, capacity, voltage, connector, BMS — every parameter is configurable to your specifications
• International certifications: UL, CE, IEC, KC, RoHS, REACH — compliant with European, American, and Asian markets
• Broad product range: a single source for LiPo, Li-ion, LiFePO4, and NiMH
• Proven references: Huawei, Omron, Emerson, and Mindray validate the manufacturer’s reliability
• Sector expertise: dedicated solutions for medical, robotics, solar energy, security, and electric mobility
• Industrial capacity: large-scale production from Shenzhen, with a virtual factory tour available online

Application Sectors

SUJOR batteries power critical equipment across a wide range of industries:

Want to Know More?

Do you have a project requiring custom lithium batteries? Fill in the form below — our team will review your requirements and get back to you within 24 hours.

Tell us about: the type of battery you need, the intended application, estimated volumes, and any technical or regulatory constraints. The more specific your request, the more useful our response will be.

What is an MLCC capacitor?

The MLCC (Multilayer Ceramic Chip Capacitor) is one of the most widely used passive components in the electronics industry. Its structure stacks ceramic layers with internal Ag or AgPd electrodes, sintered at high temperature to form a monolithic chip. The result: a compact, reliable component suited for surface mounting (SMD), with high volumetric capacitance and a long service life.

It is found in computers, phones, telecommunications equipment, precision measuring instruments, radar systems, and many military and industrial devices.

UF Capacitors in figures

The concrete advantages of the UF CAPACITOR’s MLCC range

• Wide choice of dielectrics — C0G/NP0 for high-frequency oscillating circuits, X7R and X5R for filtering and decoupling, Y5V and Z5U for general high-capacitance applications.
• Complete SMD formats — from 0201 to 1812, in T&R (tape & reel), RoHS compliant.
• High-voltage MLCCs — available up to 4 kV (e.g. 1812 package).
• RF / microwave MLCCs (High Q) — high reliability, low ESR, high Q factor, for base stations, radars and military systems.
• Military qualifications — MLCCs and tantalum capacitors produced with military qualifications.
• On-site UL laboratory — in-house quality control with a UL-recognized test laboratory directly within the factory.

A serious alternative to major brands

UF Capacitors positions itself as a direct alternative to TDK, Murata, AVX, EPCOS, Vishay and Panasonic, with equivalent quality and competitive lead times. The company counts among its references leading industrial groups: GE, Philips, Jabil and Flex.

Cross-reference examples — standard CT41 range

Dielectrics: X7R · X5R · NPO · Y5V

Cross-references — High Q range (RF / military)

Cross-references — standard CT41 range (series)

Ready to reduce costs and lead times for your MLCCs with a cost-effective solution?

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A Measure Rooted in National Security

The justification put forward by the Trump administration is unambiguous: according to the presidential proclamation, the United States manufactures only about 10% of the chips it needs domestically, making it heavily dependent on foreign supply chains — a situation described as a “significant economic and national security risk” for the country.

This is not a new observation. For several years, America’s dependence on Asian foundries — particularly Taiwanese ones — has fueled a strategic debate combining industrial sovereignty and technological competitiveness. Major American companies such as Nvidia, AMD, and Intel design their chips in the United States but have them manufactured abroad, primarily by Taiwanese giant TSMC. It is precisely this model that the new measure seeks to challenge.

The decision concludes a nine-month investigation conducted by the Office of the United States Trade Representative (USTR), Jamieson Greer — the same type of mechanism already used to impose tariffs on steel, aluminum, automobiles, and pharmaceuticals.

In Practice, Who Is Affected?

The 25% tariff applies to semiconductors imported into the United States with the intention of re-exporting them to their destination country. President Trump himself summed up the principle: “We allow them to export these chips, but the United States receives 25% of their value.”

Among the components directly targeted are advanced processors for artificial intelligence and high-performance computing — such as Nvidia’s H200 chips.

What Is Exempted

The proclamation does, however, provide significant exemptions. Semiconductors imported to:

• support the development of the American technology supply chain,
• power American data centers,
• serve start-ups, civilian industrial applications, and public sector uses,

…are not subject to these duties. This granularity reflects a desire to protect domestic innovation while concentrating pressure on segments deemed strategic.

A First Step, With More to Come

The measure is explicitly presented as phase 1. Washington has announced that higher duties on chip imports and their derivatives could be imposed “in the near future,” suggesting a broader second phase is in preparation.

This prospect creates significant uncertainty for the entire industry: manufacturers, distributors, equipment makers, and end buyers must now factor in scenarios of potentially wider taxation.

The Impact on Global Supply Chains

For players in the electronics sector, the logistical and commercial implications are immediate.

For Asian manufacturers, the measure increases the cost of transiting through the United States and complicates export routes to third-party markets. Companies like ASML have already indicated they are working with their supply chain and customers to “limit the impact as much as possible.”

For distributors and importers, the need to revise logistics flows is pressing: transit routes that avoid American soil will become more attractive, at the cost of sometimes complex reorganization.

For OEMs and buyers, particularly in the automotive, industrial, or consumer electronics sectors, rising component costs are a reality to be built into budgets and contracts currently under renegotiation.

More structurally, this decision accelerates thinking around the geographic diversification of production sites and the trade-off between cost, supply security, and regulatory compliance — a trend already underway since the shortages of 2021–2022.

Pressure on Industry to Reshore

The administration’s message is clear: manufacture in the United States and avoid the tariffs. Apple notably announced at the start of the week a $100 billion investment in its American production chain — a decision Trump hailed as the model to follow.

For other players, the equation is more complex. Building or relocating semiconductor manufacturing capacity takes years and requires billions of dollars. Tariff policy therefore acts more as a long-term strategic signal than as a short-term fix to current dependencies.

Key Takeaways for Your Procurement Watch

If you work in procurement, supply chain, or technical management at an industrial or electronics company, here are the risk factors to integrate now:

1. Map your flows: identify whether your components transit through the United States before delivery to Europe or elsewhere.
2. Anticipate tariff pass-through: suppliers exposed to this tax may pass it on to their pricing in the coming weeks.
3. Monitor phase 2: an extension of tariffs to other component categories is officially under consideration.
4. Strengthen supplier diversification: concentration on a single manufacturer or geographic area carries increased risk in this environment.

Sources: Boursorama / Reuters (January 15, 2026), Usine Digitale (January 15, 2026), IT Social (January 16, 2026), La Presse / AP (January 14, 2026), Electroniques.biz (January 15, 2026).

1. The 2024 Review: A Painful “Reset”

To understand where the sector stands today, we need to look back at what 2024 actually was: a year of painful correction. After the excessive orders placed in the panic of the 2022-2023 shortages, manufacturers spent most of the year working through surplus inventory. Nick Wood, Sales Director at Insight SiP, summed up the situation well at the start of 2024: “2024 will be a reset year, with largely stable revenues for many suppliers as the post-pandemic supply chain effects dissipate.” (Lembarque.com, February 2024)

The numbers confirm this diagnosis. In France, Acsiel’s Q1 2024 barometer recorded a 4% decline in the components and consumables index compared to the previous quarter — a 13% drop year-on-year. Semiconductors, passive components, and connectors all dragged the index down. A weak construction sector, the slowdown in electric vehicle uptake (with anticipated volumes slow to materialise), and fierce Chinese competition in certain segments made the picture even grimmer. (Acsiel / VIPress.net, July 2024)

On the European majors front, signals were equally negative: STMicroelectronics anticipated a 5.2% decline in its median revenue for 2024, while Infineon projected an 11% contraction in Q1. (ChannelNews, February 2024)

Yet at the global level, the overall picture is less bleak. Every single month of 2024, the semiconductor industry recorded double-digit year-on-year sales growth. In January 2024, global sales reached $47.6 billion, up 15.2% from January 2023, according to the Semiconductor Industry Association (SIA). (Groupe GA / IC-Golden.com, January 2025)

2. The Engine of Recovery: Artificial Intelligence

If one segment is pulling the entire industry upward, it is unquestionably AI chips. Demand from hyperscalers (Microsoft, Google, Amazon, Meta) equipping their data centers has continued to accelerate, propelling NVIDIA to the status of the world’s most sought-after stock. Foxconn CEO Young Liu stated early in 2024 that he expected “the AI chip shortage to continue through 2024 due to limited server chip production capacity.” (ChannelNews, February 2024)

This dynamic is creating a rift within the market itself: on one side, a persistent shortage and sustained prices for high-end GPUs and AI chips; on the other, overcapacity and margin pressure in more mature segments (passive components, consumer microcontrollers, traditional automotive components).

Gartner forecast a 16.8% rebound in global semiconductor revenues to reach $624 billion in 2024 — growth driven largely by this AI boom. (ChannelNews, December 2023)

For 2025, the outlook is positive but mixed. The WSTS (World Semiconductor Trade Statistics) projects 12.5% growth in the global market, reaching $687 billion, driven by memory and logic chips. In Europe, expected growth remains more modest — single digits — while the Americas and Asia-Pacific should post significantly stronger rates. (Groupe GA / IC-Golden.com, January 2025; Kitron / Electroniques.biz, June 2024)

3. New Geopolitical Dynamics: From Shortage to Sovereignty

The harsh lesson of 2021-2022 was clear: in the world of electronic components, geographic dependency is a systemic risk. The vast majority of advanced chip production is concentrated in Taiwan, at TSMC, which manufactures most of the cutting-edge semiconductors for Apple, NVIDIA, and AMD. Tensions between Beijing and Taipei remain high, and this concentration is alarming governments and industry players alike.

The response has been political and massive:

• United States: The CHIPS and Science Act of 2022 mobilised $52 billion in subsidies to reshore manufacturing on American soil. From April 2024 onward, the first concrete tranches were announced: $6.6 billion for TSMC (Arizona), $1.375 billion for GlobalFoundries (New York). However, manufacturing in the US costs 3 to 4 times more than in Taiwan, and a shortage of skilled labour remains a major obstacle. (Le Monde Informatique, December 2023; Investing.com, April 2024)
• Europe: The European Chips Act, backed by €44 billion, aims to bring Europe’s share of global chip production to 20% by 2030. An ambitious target, given that the continent is starting from a very low base. By September 2024, some industry players were already calling for a “Chips Act 2.0,” noting that the first version had mainly served to “highlight the problems” without yet solving them. (Generation-NT.com, September 2024)
• China: Beijing is investing heavily in local factories to achieve technological self-sufficiency. Over the past three years, its share of global chip manufacturing has increased by nearly 50%, reaching approximately 18% of global supply. (Le Monde Informatique, December 2023) Meanwhile, US export restrictions on the most advanced AI chips to China have created a paradoxical dynamic: Chinese tech giants (Alibaba, ByteDance, Tencent) continue to eagerly purchase NVIDIA chips adapted to export rules (such as the H20), lacking competitive local alternatives in the short term.

4. Growth Segments and Segments Under Pressure

The electronic components market is not monolithic. In 2025, some segments are clearly driving growth while others are struggling to emerge from the cyclical trough.

High-growth segments:

• AI chips and data centers: driven by massive hyperscaler investments.
• Automotive electronics (ADAS, EVs): electric vehicles are incorporating ever more semiconductors (over 1,000 power modules per vehicle on average). Demand for SiC (silicon carbide) components is surging for energy management systems. (Mordor Intelligence / Marketgrowthreports.com)
• 5G and connectivity: 5G infrastructure rollouts are sustaining strong demand for high-frequency RF components.
• IoT and smart home: more than 20 billion IoT endpoints expected to be deployed globally, each requiring multiple components. (Global Growth Insights)

Segments under pressure:

• Passive components and connectors: overproduction, Chinese competition, margin pressure.
• Industrial and building electronics: weak conditions in the residential construction sector are weighing on home automation.
• PCBs (printed circuit boards): after a 15% production decline in 2023, the recovery is gradual. Capacity is abundant in China, while Europe and the US are focused on ramping up their defence industry output. (Kitron / Electroniques.biz, June 2024)

5. Persistent Structural Challenges

Despite the rebound, several structural vulnerabilities continue to weigh on the industry:

Cyclical volatility. The semiconductor industry remains deeply cyclical. Kitron, a specialist subcontractor, puts it bluntly: “component availability has greatly improved, but the market remains very difficult and almost all other factors affecting prices are moving in the wrong direction.” (Electroniques.biz, June 2024) The risk of a new mini supply crisis in the event of a sudden demand rebound remains real.

Lack of visibility. The prolonged inventory correction has generated a deficit of visibility on long-term orders, making forecasting highly challenging for component manufacturers. Lead times can lengthen “very quickly when global demand growth absorbs available inventory.” (Kitron)

Raw material price pressure. French manufacturers are facing rising prices for copper, tin, and gold, while at times being forced to cut their selling prices to keep factories running — a particularly painful squeeze in the passives segment. (Acsiel / VIPress.net, July 2024)

Skills shortage. Recruitment difficulties span all profiles — technicians, operators, engineers — and represent one of the key constraints on ramping up production, including for the most ambitious reshoring projects. TSMC in Arizona experienced this firsthand, pushing back the opening of its second plant from 2024 to 2025. (Le Monde Informatique, December 2023)

6. Outlook: A Market in Deep Restructuring

By 2032, the global electronic components market could reach $847 billion (up from around $394 billion in 2024), according to Fortune Business Insights — a near-doubling in less than a decade. Asia-Pacific is expected to maintain its dominance with around 37% market share.

But beyond the numbers, a structural reshaping is underway. Global supply chains, once optimised purely for cost, are reorganising around resilience and sovereignty. Governments have become direct actors in the industry. Geopolitics has entered the boardrooms of chip manufacturers. And artificial intelligence, by creating an almost insatiable demand for computing power, has reshuffled the deck among all players.

For European and French players, the challenge is twofold: participating in this rebound while building an industrial base that is less dependent on Asian supply. That is the challenge underpinning the European Chips Act, as well as champions like STMicroelectronics and Soitec, which are developing advanced technologies for the automotive and space markets. (Major Prépa, November 2024)

Summary

Sources

• Semiconductor Industry Association (SIA) — monthly global sales data: semiconductors.org
• WSTS (World Semiconductor Trade Statistics) — 2025 forecasts: wsts.org
• Gartner — semiconductor market forecast 2024 (ChannelNews, December 2023): channelnews.fr
• Acsiel — Electronics barometer Q1 2024 (VIPress.net, July 2024): vipress.net
• Kitron — Electronic components market watch (Electroniques.biz, June 2024): electroniques.biz
• Nick Wood / Insight SiP — Industry outlook 2024 (Lembarque.com, February 2024): lembarque.com
• Groupe GA / IC-Golden.com — Electronic components industry outlook 2025 (January 2025): ic-golden.com
• Fortune Business Insights — Global electronic components market size: fortunebusinessinsights.com
• Le Monde Informatique — CHIPS Act: status report (December 2023): lemondeinformatique.fr
• Generation-NT.com — Chips Act 2.0 and European strategy (September 2024): generation-nt.com
• ChannelNews — Semiconductor rebound, AI chip shortage (February 2024): channelnews.fr
• Major Prépa — Semiconductors 2025, geopolitical stakes (November 2024): major-prepa.com
• Mordor Intelligence — Power electronics market: mordorintelligence.com

1. TSMC and the CHIPS Act: A Third Fab in Arizona (April 8, 2024)

On April 8, 2024, the U.S. Department of Commerce and TSMC Arizona signed a preliminary agreement for up to $6.6 billion in direct funding under the CHIPS and Science Act. The announcement came with a major headline: TSMC confirmed the construction of a third fab in Phoenix, bringing the total investment on the site to more than $65 billion — the largest foreign direct investment in a greenfield project in U.S. history.

The first fab will produce chips using 4nm process technology, the second will use 2nm — the most advanced ever manufactured in the United States — and the third will use 2nm or more advanced processes, with production scheduled before the end of the decade. In addition to the direct funding, the agreement proposed up to $5 billion in federal loans.

For component procurement professionals, this event is strategic on two levels: it will ultimately reduce the global industry’s dependence on a single geographic cluster in Asia, and it confirms that reshoring advanced semiconductor production is no longer wishful thinking — it is literally under construction.

Source: TSMC / U.S. Department of Commerce, official press release, April 8, 2024 — pr.tsmc.com · commerce.gov

2. Nvidia Shatters Records: $26 Billion in Revenue for Q1 (May 22, 2024)

On May 22, 2024, Nvidia released its results for the first quarter of fiscal year 2025 (ending late April 2024). The figures left the industry speechless: $26 billion in revenue, up 262% year-over-year and 18% from the previous quarter.

The Data Center segment, the engine of this growth, reached $22.6 billion on its own — a 427% increase year-over-year. Demand for the Hopper GPU platform, used for training and inference of large language models, continued to surge. Major cloud providers accounted for roughly 45% of Nvidia’s Data Center revenue that quarter. Nvidia also announced a ten-for-one stock split, effective June 7, 2024.

Jensen Huang, Nvidia’s CEO, told investors: “The next industrial revolution has begun.”

For the broader electronic components industry, these results confirmed an unavoidable reality: demand for AI chips and high-bandwidth memory (HBM) was creating a two-speed market — standard components trending toward normalisation on one side, and cutting-edge semiconductors under chronic supply pressure on the other.

Source: NVIDIA Corporation, Q1 FY2025 earnings press release, May 22, 2024 — investor.nvidia.com

3. The US-China Chip War Intensifies: New Export Restrictions

Throughout Q2 2024, geopolitical pressure on semiconductor supply chains continued to mount. U.S. export controls on advanced chips destined for China — first introduced in October 2022 and expanded in October 2023 — kept evolving, with new Chinese entities added to the restricted list and tightened licensing requirements for semiconductor manufacturing equipment.

These measures aimed to limit China’s access to the most advanced AI GPUs and the lithography tools needed to produce next-generation chips. Meanwhile, China was accelerating its push for technological self-sufficiency, with companies like Huawei and SMIC making progress on increasingly advanced process nodes despite the restrictions.

For procurement teams and supply chain managers, this dynamic carries direct implications: the gradual fragmentation of the global semiconductor market into two distinct ecosystems — one aligned with the United States, the other with China — is beginning to materialise in sourcing decisions, approved vendor lists, and qualification strategies.

Source: U.S. Bureau of Industry and Security (BIS) — regulatory developments 2023–2024; CSIS, The Limits of Chip Export Controls, 2024 — csis.org

What This Means for Your Component Procurement

These three events point to the same conclusion: the electronic components market is normalising on the surface, but restructuring at its core. Lead times are improving for standard references — but advanced semiconductors, HBM memory, and AI chips remain under structural pressure, with geopolitics capable of closing off supply access overnight.

At ARTRONIK COMPONENTS, we monitor these developments in real time to anticipate allocation cycles before they affect our customers. It is precisely why we continue to expand our network of certified manufacturing partners — to provide qualified alternatives when markets tighten.

How We Got Here

Cast your mind back to 2021. Automotive plants were shutting down for lack of a $2 chip. Consumer electronics manufacturers were air-freighting components at eye-watering costs. Distributors were quoting lead times in months, not weeks. Buyers were doubling and tripling their orders out of pure fear, which only made the shortage worse.

The root causes were well documented: a surge in consumer electronics demand during lockdowns, a simultaneous collapse and rebound in automotive production, a global shortage of wafer fabrication capacity, and a cascade of logistics disruptions — from port congestion to the Suez Canal blockage of 2021. The industry was caught flat-footed, and it took years of capital investment, capacity expansion and painful inventory correction to find its way back.

“After two years of severe constraints, lead times across most component categories have returned to levels broadly consistent with pre-pandemic norms, with average global figures now tracking below 14 weeks.”

— Industry consensus, distributor data, Q4 2023 / Q1 2024

What the Numbers Say

Supply chain tracking data available through early 2024 confirms that global average lead times have returned to approximately 14 weeks — down from a peak of over 26 weeks recorded at the height of the crisis in 2022. This represents a reduction of nearly 50% from the crisis peak.

The recovery has not been uniform across all product families:

Passive components (MLCCs, resistors, inductors) saw some of the most dramatic lead time improvements, having been among the most severely affected during the shortage. Supply has recovered substantially, though demand is beginning to move upward again — a dynamic worth monitoring closely.

Logic ICs and microcontrollers have also seen significant normalisation, with many standard references now available from stock at major distributors, reversing the desperate allocation environment of 2021–2022.

Power semiconductors (MOSFETs, IGBTs, diodes) remain somewhat tighter than other categories, sustained by structural demand from the electric vehicle and renewable energy sectors.

AI and high-performance computing chips are in a category of their own — demand from hyperscalers and AI accelerator manufacturers continues to outstrip supply for leading-edge devices, and this segment shows no sign of normalising.

The Inventory Correction Problem

Here is where the picture becomes more nuanced. The normalisation of lead times has come hand in hand with a significant build-up of inventory across the supply chain. During the shortage years, buyers — understandably — placed orders far in excess of their actual requirements, hedging against delays and allocation. Now that supply has caught up, those excess orders have translated into bloated warehouses.

Distributors are sitting on elevated stock levels. Many OEMs and contract manufacturers are working through component inventory that will take several more quarters to digest. This oversupply situation is exerting downward pressure on prices — good news for buyers in the short term, but a source of margin pressure for manufacturers and distributors.

The supply-demand imbalance is particularly visible in passive components, where supply growth has outpaced demand recovery since mid-2022. The risk of a new tightening cycle — not immediately, but potentially within the next 12 to 18 months — cannot be dismissed if demand continues to accelerate from current levels.

What This Means for Procurement Teams

The temptation, in a normalised market, is to relax. Lead times are manageable, prices are under control, stock is available. But the asymmetric nature of supply chain risk argues strongly against complacency. The journey from comfortable availability to acute shortage can be measured in weeks, while the recovery takes years.

Several factors could trigger a new tightening cycle in 2024:

Geopolitical risk remains elevated. Tensions between the US and China over semiconductor technology exports, the vulnerability of Taiwan-based foundries, and disruptions in global shipping lanes — including the Red Sea, where Houthi attacks are already diverting container traffic in early 2024 — represent live threats to supply continuity.

Structural demand acceleration in AI, electric vehicles and renewable energy is not cyclical. These sectors will increasingly compete for power semiconductors, high-speed memory and advanced packaging capacity.

Reshoring investments — TSMC in Arizona, Intel in Ohio and Germany, Samsung in Texas — are genuinely underway but will not deliver meaningful capacity relief before 2026 at the earliest. The industry remains heavily dependent on a concentrated group of Asian foundries in the meantime.

The Strategic Takeaway

The normalisation of lead times in early 2024 is unambiguously good news. For procurement teams, it restores flexibility and reduces emergency stock costs. For designers, it reopens access to components that were essentially unavailable for years.

But the structural vulnerabilities exposed by the 2020–2023 crisis have not disappeared. The companies that will navigate the next disruption best are those that use this window of relative calm to diversify their supplier base, invest in obsolescence monitoring, and build relationships with reliable, certified component partners rather than relying solely on the spot market.

At ARTRONIK COMPONENTS, this is precisely why we continue to expand our network of vetted manufacturing partners — ensuring that when the next cycle turns, our customers are protected.

Sources

• Susanne Retzlaff, IHS Markit / S&P Global — Electronic components lead time tracking reports, 2022–2023
• Supplyframe — Component Intelligence Reports, Q3–Q4 2023
• ECIA (Electronic Components Industry Association) — North America Electronic Components Sales Report, Q4 2023
• Bloomberg / Reuters — Red Sea shipping disruption coverage, January–February 2024
• TSMC, Intel, Samsung — Official announcements on US and European fab investments, 2022–2023
• Distributor earnings calls (Avnet, Arrow, TTI) — Inventory and demand commentary, Q3–Q4 2023

We are pleased to announce our partnership with TOPDIODE Manufacturing, a leading Chinese manufacturer of discrete semiconductors with nearly three decades of industrial expertise. This collaboration marks a significant step forward in our ability to offer our customers high-quality, competitively priced, and fully compliant electronic components — sourced directly from the manufacturer.

Who Is TOPDIODE?

Founded in 1996 and headquartered in Dongguan, Guangdong, China, with manufacturing facilities spread across Hunan and Shandong Provinces, TOPDIODE Manufacturing Company has built a solid reputation as a reliable, integrated producer of discrete electronic components. With a workforce of around 750 employees — including 65 specialized engineers and technicians — and a production capacity reaching 6 billion components, TOPDIODE operates at an industrial scale that few manufacturers in this segment can match.

TOPDIODE serves a diverse range of markets, including consumer electronics, computing, telecommunications, industrial equipment, power conversion, medical devices, and military applications. Its components can be found in everyday products such as televisions, satellite set-top boxes, ADSL modems, power supplies, laptops, digital cameras, energy-saving lamps, and brushless DC motor fans.

A Complete Portfolio of Discrete Semiconductors

The TOPDIODE division specializes exclusively in discrete semiconductors, offering one of the most comprehensive catalogs in the industry. Here’s what’s available:

• Rectifier Diodes — including the iconic M7, 1N4007, S1M, and SM4007 in a wide range of standard packages (DO-41, SMA, SMB).
• Switching Diodes — featuring the universally used 1N4148 (DO-35), LL4148 (LL-34), 1N4148W (SOD-123), and BAV99 (SOT-23), essential for high-frequency and logic circuits.
• Zener Diodes — covering voltage references from 2.4V to 47V across the BZX84C, BZX55C, and BZV55C series, available in DO-35, LL-34, and DO-41 packages.
• Schottky Diodes — with ultra-low forward voltage drop, including the 1N5819, SB1100, SB2200, SB3200, and SS-series (SS32, SS34, SS36), ideal for switching power supplies and high-frequency rectification.
• Fast Recovery Diodes — the FR107, FR157, FR207, FR507, and FR607 series for demanding power conversion applications requiring minimal reverse recovery time.
• TVS Diodes & Diacs — the P4KE, P6KE, and 1.5KE series for transient overvoltage protection across a wide range of industrial and consumer applications.
• Bi-directional Trigger Diodes — DB3 and DB4 (DO-35), LLDB3 (SOD-80), widely used in lighting dimmers and power regulators.
• Bridge Rectifiers (THT & SMT) — one of TOPDIODE’s strongest product lines, with the MB10S, DB107S, DB157S, GBL207, KBP207, KBJ4M, GBU6M, KBPC2510, and 2W10 covering current ratings from 0.5A to tens of amperes.
• Small Signal Transistors — the BC807, BC817, BC847, BC857, and BC859 series in SOT-23 packages, among the most widely used transistors in global electronics manufacturing.

Why We Chose TOPDIODE: Key Advantages

Choosing the right manufacturing partner is never a decision we take lightly. Here’s what sets TOPDIODE apart and why we’re excited about this collaboration:

✅ Direct Manufacturer — No Middlemen

TOPDIODE designs and manufactures its components in-house. This means tighter quality control, batch-to-batch consistency, full traceability, and more competitive pricing — benefits that flow directly to our customers.

✅ Industry-Standard References for Easy Drop-In Replacement

Every component in the TOPDIODE lineup is based on globally recognized references. Cross-reference tables in PDF and Excel formats are available for seamless sourcing transitions — no redesign required.

✅ THT & SMT Availability Across the Range

Whether your production lines are traditional or modern, TOPDIODE covers both Through-Hole and Surface Mount formats, offering flexibility without the need for multiple suppliers.

✅ Industrial-Scale Production Capacity

With 6 billion units of annual production capacity, TOPDIODE can handle large volumes, tight deadlines, and demand peaks without compromising on lead times or quality.

✅ Internationally Certified Quality

TOPDIODE’s facilities are certified ISO 9001:2008 and ISO 14001:2004. All discrete semiconductors are RoHS 2.0 and REACH compliant, with certifications issued by independent bodies including SGS. A Conflict-Free Metals Declaration is also available for customers subject to supply chain transparency requirements.

✅ Comprehensive Technical Documentation

Datasheets, full product catalogs, cross-reference guides, package size references, and compliance declarations are all freely available for download — streamlining qualification, design-in, and procurement processes.

✅ Global Distribution Network

TOPDIODE is actively expanding its international distributor network, ensuring better local availability, shorter lead times, and dedicated commercial support for customers outside Asia.

What This Partnership Means for You

This partnership translates into real, tangible benefits for our customers:

Better pricing — by working directly with the manufacturer, we eliminate unnecessary markups and pass the savings on to you.

Broader availability — access to a wide and deep catalog of discrete semiconductors, all from a single, trusted source.

Regulatory peace of mind — all components come with the certifications and compliance declarations needed to meet your quality and regulatory requirements, without additional paperwork on your end.

Faster sourcing — standardized references, ready-to-use cross-reference tables, and a strong production capacity mean shorter cycles from order to delivery.

A reliable long-term partner — nearly 30 years of industrial experience, certified manufacturing processes, and a commitment to quality make TOPDIODE a partner built for the long haul.

Ready to Explore the TOPDIODE Range?

We invite you to discover the full TOPDIODE catalog and find out how these components can enhance your designs, simplify your supply chain, and strengthen your product quality.

Our team is available to help you identify the right references, navigate cross-reference options, and get you the technical documentation you need.