Halfway Through, Heading Where? The Midyear Economic Check-In

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At the midpoint of 2025, the global economy remains caught between resilience and risk. Inflation is elevated but hasn’t spiked as sharply as some feared following the latest round of tariffs, at least not yet. Meanwhile, hopes for aggressive interest rate cuts are fading as the Fed remains cautious, labor market data is softening, and trade tensions remain high as new policies ripple across supply chains. 

In this timely economic briefing, IPC Chief Economist Dr. Shawn DuBravac breaks down the forces shaping the back half of the year. From supply chain disruptions to geopolitical flashpoints, this session will offer a data-driven, industry-relevant look at what lies ahead. This live webinar that will help you cut through the noise and make more informed strategic decisions. 

What You Will Gain: 

  • Midyear Global Outlook: Revised projections and performance insights across key economies
  • Inflation & Interest Rate Watch: Why inflation hasn’t surged (yet), and what could change
  • Tariff Trends: A look at recent trade actions and their near-term economic impact
  • Labor Market Signals: What slowing job growth and rising claims may mean for businesses
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Navigating A New Reality: How EMS Companies Must Balance Global Efficiency with Regional Resilience

Jun 09, 2025

By Sanjay Huprikar, Chief Global Officer, IPC and Philip Stoten, Industry Analyst

After decades of optimizing for global efficiency through lean supply chains and cost arbitrage, the electronics manufacturing services (EMS) industry stands at a crossroads. EMS companies now face mounting pressure to build regional resilience without sacrificing the interconnectedness that has driven innovation and economic growth. This tension between globalization and regionalization isn't just a policy or strategy debate—it's a fundamental business reality that EMS companies must navigate daily.

The EMS Industry's Global-Regional Paradox

For EMS providers, the challenge is particularly acute. These companies have built their competitive advantage on the ability to leverage global supply networks, optimize manufacturing footprints across multiple continents, and serve multinational OEMs with consistent quality and cost structures worldwide. Yet today's geopolitical tensions, supply chain disruptions, and customer demands for shorter lead times are forcing a strategic recalibration.

The reality is that EMS companies cannot simply choose between global and regional strategies—they must excel at both simultaneously. A major EMS provider might operate facilities across Asia, Europe, and the Americas, sourcing components globally while serving customers who increasingly demand regional production capabilities. This dual requirement creates complexity that extends far beyond traditional manufacturing considerations.

Consider the automotive electronics sector, where EMS companies are experiencing growth in electric vehicle components. These manufacturers must maintain global component sourcing relationships to achieve competitive pricing while establishing regional production capabilities to meet automotive OEMs' just-in-time delivery requirements and reduce supply chain risks. The challenge isn't choosing one approach over the other; it's integrating both into a coherent operational strategy.

The New Rules of Regional Manufacturing

Regional manufacturing in the EMS context doesn't mean returning to isolated, self-contained supply chains. Instead, it represents a more sophisticated approach to balancing proximity with efficiency. Successful EMS companies are discovering that regional strategies work best when they're part of a globally coordinated framework.

This evolution requires EMS providers to rethink several fundamental assumptions. Workforce development, for instance, must now consider regional talent pools and training requirements while maintaining global standards for quality and capability. Procurement strategies must balance local sourcing opportunities with global supplier relationships. Technology deployment must account for regional regulatory requirements while leveraging global R&D investments.

The most successful EMS companies are those that view regionalization not as a retreat from globalization, but as its next evolution. They're creating regional centers of excellence that specialize in specific technologies or market segments while maintaining the connectivity and knowledge sharing that global operations enable.

Supply Chain Resilience Through Intelligent Diversification

The pandemic and subsequent supply chain disruptions taught the EMS industry valuable lessons about the risks of over-optimization. Companies that had streamlined their supplier bases to the bare minimum found themselves vulnerable when single sources of critical components failed. However, the solution isn't simply adding more suppliers—it's building intelligent diversification that combines global sourcing capabilities with regional backup options.

Leading EMS providers are now implementing what we call "hybrid resilience strategies." These approaches maintain primary global supply relationships while establishing secondary regional capabilities that can be activated when needed. This might involve qualifying regional component suppliers as backup sources, maintaining inventory buffers in multiple geographic locations, or developing alternative manufacturing processes that can utilize different component specifications.

This strategy requires sophisticated planning and coordination. EMS companies must invest in systems and processes that can manage multiple supply chain scenarios simultaneously, switching between global optimization and regional resilience as conditions warrant. The companies that master this balance will have significant competitive advantages in an increasingly volatile world.

Technology as the Great Equalizer

One of the most promising developments in balancing global and regional approaches is the role of technology in reducing traditional trade-offs. Advanced manufacturing technologies, artificial intelligence, and improved communication systems are enabling EMS companies to achieve regional production capabilities without sacrificing the efficiency gains that global operations provide.

Digital manufacturing technologies, for example, allow EMS providers to replicate production capabilities across multiple regional sites more easily than ever before. Standardized digital processes can be deployed globally while accommodating regional variations in labor costs, regulations, and market requirements. Similarly, AI-driven supply chain optimization can help companies manage the complexity of hybrid global-regional strategies by continuously optimizing sourcing, inventory, and production decisions across multiple locations.

The adoption of Industry 4.0 technologies is particularly relevant for EMS companies operating in high-wage regions. Advanced automation and smart manufacturing systems can help offset higher labor costs while providing the flexibility to serve regional markets efficiently. This technological capability is essential for making regional manufacturing economically viable in markets where cost competition remains intense.

The Role of Industry Collaboration

While individual EMS companies must navigate these challenges independently, the broader transformation requires industry-wide collaboration. This is where organizations like IPC play a crucial role in facilitating dialogue, sharing best practices, and developing standards that support both global connectivity and regional capabilities.

The electronics industry benefits significantly when companies, suppliers, and stakeholders work together to address common challenges. Through collaborative initiatives, the industry can develop harmonized standards that work across regions, share intelligence about emerging supply chain risks, and coordinate workforce development efforts that benefit the entire ecosystem.

Industry associations serve as neutral forums where competitors can collaborate on pre-competitive issues while maintaining their individual market strategies. This collaboration is particularly valuable in addressing challenges that span multiple regions and require coordinated responses, such as workforce training standards, supply chain security protocols, and technology development priorities.

Building Tomorrow's EMS Industry

The future of the EMS industry lies not in choosing between global and regional approaches, but in masterfully combining both. This requires new thinking about organizational structures, operational strategies, and collaborative relationships. Companies must develop what we term "glocal capabilities"—the ability to think globally while acting locally, maintaining worldwide connectivity while building regional strength.

Success in this new environment requires EMS companies to become more sophisticated in their strategic planning, more agile in their operational execution, and more collaborative in their industry relationships. They must invest in technologies and processes that support hybrid strategies while building organizational capabilities that can manage increased complexity.

The companies that thrive will be those that view the global-regional balance not as a constraint to be managed, but as a competitive advantage to be leveraged. They will use their global reach to access the best technologies, suppliers, and talent while using their regional presence to serve customers with speed, flexibility, and reliability.

The electronics manufacturing services industry has always been characterized by its ability to adapt to changing market conditions and customer requirements. The current challenge of balancing global efficiency with regional resilience is simply the latest chapter in this ongoing evolution. By embracing both approaches simultaneously, EMS companies can build more robust, responsive, and ultimately more successful businesses for the future.

Sanjay Huprikar is Chief Global Officer at IPC, the global electronics association, where he oversees international strategy and member relations across multiple regions. Philip Stoten is an industry analyst specializing in electronics manufacturing and supply chain strategies.

IPC Issues Call for Participation for IPC APEX EXPO 2026

Technical Program Committee encourages early indication of interest

IPC is now accepting abstracts for technical papers with presentations, posters, and professional development courses at IPC APEX EXPO 2026. The technical conference, reimagined and renamed to Advanced Electronic Packaging Conference 2026 Component- to System-Level Integration, will be held March 17-19 and professional development courses will take place March 15-16 and 19, 2026, at the Anaheim Convention Center in Anaheim, Calif.

 

“While the format and scope of the conference are being transformed, the core technical content our industry relies on is not only being preserved—it’s being expanded to better reflect today’s comprehensive component-to-system-level view,” said Stanton Rak, Ph.D., co-chair of the IPC APEX EXPO Technical Conference Program Committee. “We’re strongly encouraging technologists interested in presenting to provide an early indication of interest, by July 31. Doing so, could put prospective speakers in a lead position for session slots,” added Dr. Rak. Individuals can readily communicate their early indication of interest using the abstract submission portal.” 

 

As the industry’s premier conference and exhibition for the electronics industry, IPC APEX EXPO provides presenters and their companies with a notable and cost-effective opportunity to promote their expertise and gain visibility with key engineers, managers, and executives from all segments of the industry worldwide. Topics for technical conference papers, technical posters and professional development courses include: design and simulation; materials; advanced PCB fabrication; assembly, test and manufacturing; quality, reliability and metrology; digital manufacturing; and sustainability. 

 

Technical Conference and Poster Submissions

 

For technical conference paper presentations and posters, IPC seeks abstracts that describe significant results from research experiments, highlight new techniques or materials, and/or discuss cutting-edge trends and challenges facing the electronics manufacturing industry. All submissions must be non-commercial, summarizing original and previously unpublished work covering case histories, research, and discoveries. Papers will be published in a proceedings document, and both paper and poster presentations will be delivered in person at IPC APEX EXPO 2026 in Anaheim. Deadline for early indication of interest is July 31, 2025; with technical paper abstracts due September 12, 2025.                                        

 

All posters will be displayed on the exhibit floor, with dedicated poster networking sessions for increased visibility. Authors of posters selected for the conference will receive further guidance on formatting, printing, and displaying posters. The deadline for technical poster abstracts is December 1, 2025. 

 

To recognize exceptional achievement, the TPC will select the top qualifying papers and one top poster for awards. Awards include “Best of Conference,” “NextGen Best Paper,” “Best Student Research Paper,” and “Best Technical Poster.”

 

Professional Development Submissions

 

For professional development courses, IPC seeks abstracts for three-hour sessions of live instruction covering all aspects of electronics manufacturing. Courses can be offered as one 3-hour session or two 3-hour sessions (offered as Part 1 & Part 2 for a total of 6 hours). Honoraria and travel expense stipends are offered to professional development instructors. Professional development course abstracts are due September 19, 2025.

 

To submit an abstract, visit www.ipcapexexpo.org/event-info/call-participation. For more information on IPC APEX EXPO 2026, visit www.ipcapexexpo.org.

IPC Hosts Industry Leaders and Signs Strategic MOUs in Taipei

On May 16, 2025, IPC hosted a high-level Industry Leaders Luncheon in Taipei, bringing together nearly 60 prominent representatives from government agencies, industry associations, and leading enterprises to explore trends and strategic opportunities shaping the future of electronics manufacturing.

During the luncheon, IPC signed two important strategic Memorandums of Understanding, the first with Taiwan Electrical and Electronic Manufacturers' Association (TEEMA) and Institute for Information Industry (III) and the second, with Taiwan Printed Circuit Association (TPCA), taking concrete steps to deepen regional collaboration and promote the transformation of the electronics manufacturing industry.

IPC × TEEMA × III

The three organizations will collaborate to promote adoption of IPC-CFX (Connected Factory Exchange) across the EMS (electronics manufacturing services) sector in Taiwan. IPC will also support TEEMA and III in developing an artificial intelligence knowledge base for the EMS industry, empowering electronics manufacturers to accelerate their digital and intelligent transformation.

IPC × TPCA

IPC and TPCA will expand cooperation in standards development, talent development, global trade shows, and technical exchanges. In addition, the two organizations will also jointly advance sustainability initiatives such as net-zero carbon emissions and digital transformation, enhancing the global competitiveness and resilience of Taiwan’s printed circuit board (PCB) industry.

Industry Leaders Luncheon attendees included Tom Edman, TTM Technologies Inc. CEO and IPC Board chair; Dr. John W. Mitchell, IPC president and CEO; Grace Sung, Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA) deputy secretary general; Calvin Tsai, director, Digital Transformation Research Institute, III; Lawrence Chang, TPCA chairman; and David Lai, TPCA secretary general.

Tom Edman stated in his speech to luncheon attendees, “As a key innovation hub in the global electronics industry, Taiwan has been working with IPC for over 50 years. Today, topics such as artificial intelligence, smart manufacturing, and sustainability are reshaping the global supply chain ecosystem, making it more important than ever for the industry to build closer and more efficient partnerships.”

At the signing ceremony, Lawrence Chang emphasized the importance of open collaboration amid global supply chain shifts, technological advancement, and net-zero transition. He stated that the partnership with IPC is a strategic response to these changes, aiming to enhance standardization, talent development, and global supply chain resilience.

“Today’s agreements reflect the long-standing trust and shared vision between IPC and Taiwan’s electronics industry,” said Dr. Mitchell. “As we look ahead, IPC remains committed to fostering forward-looking global partnerships that build a more resilient, innovative, and sustainable electronics manufacturing ecosystem.”

IPC Applauds Leadership of Reps. Moore and Krishnamoorthi on PCB Manufacturing Bill

STATEMENT: IPC, the global electronics association serving more than 1,400 U.S. companies and over 3,200 worldwide, strongly supports the bipartisan reintroduction of the Protecting Circuit Boards and Substrates (PCBS) Act in the 119th Congress. Championed by Rep. Blake Moore (R-UT) and a new lead co-sponsor Rep. Raja Krishnamoorthi (D-IL), the bill targets a critical vulnerability in the U.S. electronics supply chain by:

  • Authorizing $3 billion in federal investments for domestic PCB and IC substrate production and,
  • Establishing a 25% tax credit for companies that source U.S.-made PCBs and substrates

“The PCBS Act addresses a critical and long-overlooked weakness in America’s electronics supply chain,” said John W. Mitchell, IPC President and CEO. “Every electronic device relies on PCBs and substrates, but the U.S. no longer has the capabilities or capacity to meet current demand, much less address future technology requirements. This bill is a vital step toward rebuilding the nation’s ability to manufacture electronics from silicon to systems—an essential foundation for innovation, security, and economic strength.”

Shaping the Future of Electronics: Why the “Component-to-System Level Packaging” Workshop is Critical to Automotive and Industrial Innovation

May 27, 2025
| By Tracy Riggan
Component to System Level Packaging Workshop header

 

by Tracy Riggan, senior director, business development, IPC Technology Solutions

As the automotive and industrial sectors undergo rapid technological transformation, the electronics industry finds itself at a critical inflection point. From electric and autonomous vehicles to smart factories and connected infrastructure, modern applications demand increasingly complex electronic systems that are smaller, faster, more efficient—and more reliable than ever.

To address these challenges head-on, IPC, with the support of Research Fab Microelectronics Germany (FMD), is organizing the Workshop on Component-to-System Level Packaging – Addressing Integration Challenges for Automotive and Industrial Applications. This timely event, held in collaboration with the APECS Pilot Line initiative, offers an essential forum for the global electronics community to explore next-generation packaging and integration strategies.

Why This Workshop Matters

1. Meeting the Demands of Tomorrow’s Mobility and Industry

The shift to electrified and autonomous mobility has ushered in a new era for automotive electronics. Similarly, the rise of smart homes, Industry 4.0, and AI-driven automation has elevated the complexity and criticality of industrial electronics. These advancements necessitate unprecedented integration of processors, sensors, memory, and power modules into increasingly miniaturized and thermally efficient systems.

This workshop focuses directly on these trends, emphasizing real-world solutions to integration challenges from both Component-Level Packaging (CLP) and System-Level Packaging (SLP) perspectives.

2. From Components to Systems – A Paradigm Shift

Historically, electronic packaging stopped at the chip or device level (Level 0/1). However, today’s challenges demand a more holistic approach. System functionality is now deeply intertwined with packaging decisions—not just for individual components, but at the board (Level 2) and system (Level 3) levels. Concepts like System-in-Package (SiP) and chiplet integration blur the traditional boundaries, pushing the board "inside the package."

This shift requires close collaboration across the value chain—from OSATs (Outsourced Semiconductor Assembly and Test) to EMS (Electronics Manufacturing Services)—to enable innovation in design, materials, thermal management, and reliability.

3. Real Challenges, Real Solutions

The integration of mmWave radar, LIDAR, high-voltage EV components, wireless modules, and optical communication systems poses tough questions:

  1. How do we manage power and heat in ultra-compact designs?
  2. What standards and testing protocols ensure long-term reliability in harsh automotive or industrial environments?
  3. How can we accelerate the transition from research to mass production?

By focusing on these real-world issues, the workshop seeks to foster collaboration on standardization, guidelines, and best practices—all essential to bridging the gap between cutting-edge R&D and scalable manufacturing.

A Launchpad for Future Innovation

Beyond knowledge exchange, the planned outcome of this workshop is to initiate pre-competitive project proposals for Europe’s innovation ecosystem. These Research and Innovation Actions (RIA) or Innovation Actions (IA), ideally in connection with the APECS pilot line, will provide critical momentum to develop new packaging solutions that are both manufacturable and future-proof.

The emphasis on pre-competitive collaboration ensures that all players—large OEMs, mid-size manufacturers, startups, and academic partners—can contribute to and benefit from a shared innovation roadmap.

Be Part of the Solution

This workshop isn’t just another industry event. It’s a strategic touchpoint for everyone involved in the future of electronics—from IC designers and materials scientists to packaging engineers and production leaders. It is the first of several to be held globally with various focus points. 

If your business is part of the automotive or industrial value chain, your presence in Berlin this July isn’t just recommended—it’s essential.

Register Today. Shape the Future of Electronics
Let’s turn challenges into solutions and innovations into industry standards—together.

For more information on the workshop, agenda, or how to participate in the APECS pilot line collaboration, visit IPC’s event calendar or contact DevanIyer@ipc.org. 

North American EMS Industry Shipments Up 0.2 Percent in April

IPC releases EMS industry results for April 2025

IPC announced today the April 2025 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.41.

Total North American EMS shipments in April 2025 were up 0.2 percent compared to the same month last year. Compared to the preceding month, April shipments were down 1.4%. April’s year-to-date (YTD) shipments decreased by 0.2% year-over-year (YOY).

EMS bookings in April decreased 10% year-over-year and decreased 7.7% from the previous month. April’s YTD bookings decreased slightly (by .02%) compared to the same period last year.

“The pullback in April orders may reflect a recalibration of expectations around tariffs,” said Shawn DuBravac, IPC’s chief economist. “The strong book-to-bill ratio for the North American EMS sector was partly driven by weak shipments, as fulfillment continues to lag demand.”

April 2025 EMS book to bill ratio chart

Detailed Data Available

Companies that participate in IPC’s North American EMS Statistical Program have access to detailed findings on EMS sales growth by type of production and company size tier, order growth and backlogs by company size tier, vertical market growth, the EMS book-to-bill ratio, 3-month and 12-month sales outlooks, and other timely data.

Interpreting the Data

The book-to-bill ratios are calculated by dividing the value of orders booked over the past three months by the value of sales billed during the same period from companies in IPC’s survey sample. A ratio of more than 1.00 suggests that current demand is ahead of supply, which is a positive indicator for sales growth over the next three to twelve months. A ratio of less than 1.00 indicates the reverse.

Year-over-year and year-to-date growth rates provide the most meaningful view of industry growth. Month-to-month comparisons should be made with caution as they reflect seasonal effects and short-term volatility. Because bookings tend to be more volatile than shipments, changes in the book-to-bill ratios from month to month might not be significant unless a trend of more than three consecutive months is apparent. It is also important to consider changes in both bookings and shipments to understand what is driving changes in the book-to-bill ratio.

IPC’s monthly EMS industry statistics are based on data provided by a representative sample of assembly equipment manufacturers selling in the USA and Canada. IPC publishes the EMS book-to-bill ratio by the end of each month.

 

North American PCB Industry Shipments Down 6.8 Percent in April

IPC releases PCB industry results for April 2025

IPC announced today the April 2025 findings from its North American Printed Circuit Board (PCB) Statistical Program. The book-to-bill ratio stands at 1.21.

Total North American PCB shipments in April 2025 were down 6.8% compared to the same month last year. However, compared to the preceding month, April shipments were up 11.5% and April's year-to-date (YTD) shipments increased by 4.6% year-over-year (YOY).

PCB bookings in April were up 23.5% compared to the same month last year. April bookings were up 26.9% compared to the preceding month. April’s YTD bookings increased 20.5% to the same period last year.

“The North American PCB sector saw a big lift in April bookings, suggesting strong momentum as we head into mid-year production cycles and underscoring continued strength in demand,” said Shawn DuBravac, IPC’s chief economist. 

April 2025 PCB book to bill ratio chart 1
April 2025 PCB book to bill ratio chart 2

Detailed Data Available

Companies that participate in IPC’s North American PCB Statistical Program have access to detailed findings on rigid PCB and flexible circuit sales and orders, including separate rigid and flex book-to-bill ratios, growth trends by product types and company size tiers, demand for prototypes, sales growth to military and medical markets, and other timely data.

Interpreting the Data

The book-to-bill ratios are calculated by dividing the value of orders booked over the past three months by the value of sales billed during the same period from companies in IPC’s survey sample. A ratio of more than 1.00 suggests that current demand is ahead of supply, which is a positive indicator for sales growth over the next three to 12 months. 

Year-over-year and year-to-date growth rates provide the most meaningful view of industry growth. Month-to-month comparisons should be made with caution as they reflect seasonal effects and short-term volatility. Because bookings tend to be more volatile than shipments, changes in the book-to-bill ratios from month to month might not be significant unless a trend of more than three consecutive months is apparent. It is also important to consider changes in both bookings and shipments to understand what is driving changes in the book-to-bill ratio.

IPC’s monthly PCB industry statistics are based on data provided by a representative sample of both rigid PCB and flexible circuit manufacturers selling in the USA and Canada. IPC publishes the PCB book-to-bill ratio by the end of each month.

 

IPC Hosts 2025 Q2 Executive Policy Roundtable in Tokyo

Industry Leaders Discuss Supply Chain Resilience Amid Global Shifts
May 25, 2025

by Yusaku Kono, IPC Japan Representative

IPC successfully convened its 2025 Q2 Executive Policy Roundtable on May 21 at Tokyo Kaikan. The event brought together senior government officials, corporate executives, and industry experts to explore strategies for building resilient and future-proof supply chains in an increasingly complex geopolitical and economic landscape.

With a focus on “Geopolitical Risk and Trade Policy: Supply Chain Disruptions and Countermeasures,” the roundtable facilitated open dialogue around international collaboration, strategic manufacturing capabilities, and innovation leadership.

Key highlights:

  • Strengthening U.S.–Japan cooperation in advanced technology and semiconductor ecosystems
  • Leveraging Advanced Electronics Packaging (AEP) to promote competitiveness and supply chain resilience
  • Enhancing international collaboration beyond traditional industrial boundaries
  • Recognizing Japan’s strategic strengths in materials, manufacturing equipment, and production expertise

Speakers included Mr. Akira Amari, former Secretary General of Japan’s Liberal Democratic Party, and IPC President and CEO John W. Mitchell. Additional insights were provided by Chris Mitchell (VP, Global Government Relations, IPC) and Matt Kelly (CTO & VP, Standards & Technology, IPC), who addressed trade developments, industrial policy, and technological priorities.

Participants agreed on the urgency of reinforcing global value chains, promoting cross-border cooperation, and supporting efforts to advance the electronics industry through shared knowledge and partnerships.

Road to Reliability: Design for Manufacturing - a Technology Solutions Webinar Series for e-Mobility Electronics Hardware Reliability

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

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

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

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

Moderator: Stanton Rak, SF Rak Company

Online Event

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

Online Event

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

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