Electronics Industry Demand Holds Steady Amid Tariff Turbulence

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

 

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

 

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

 

Paying for Tariffs

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

 

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

 

Additional survey data show:

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

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

Read the full report.

Electronics Manufacturing & Packaging Symposium (EMPS) 2025

Date
-

Electronics Manufacturing & Packaging Symposium (EMPS) 2025

 

Location: 

ESA/ESTEC 

Noordwijk, the Netherlands

 

Date: 6–9 October 2025

 

Technical Presentations 

Professional Development Courses

Exhibition

 

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

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

Keplerlaan 1
2201 AZ Noordwijk-Binnen
Netherlands

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

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

IPC White Paper Maps the Regulatory Terrain for Electronics Suppliers in E-Mobility Sector

Electronics suppliers supporting the rapidly growing e-mobility sector are facing a dramatic escalation in environmental and social governance (ESG) compliance expectations. A new white paper from IPC’s e-Mobility Quality and Reliability Advisory Group provides a comprehensive overview of the evolving regulatory landscape and outlines the data infrastructure needed to stay ahead.

Titled Navigating E-Mobility Sustainability: Evolving Compliance and ESG Requirements for Electronics Suppliers – Part 1, the paper is authored by Brenda B. Baney of BCubed Consulting, Inc. and highlights “the increasing regulatory pressure for environmental compliance” across the automotive electronics supply chain.

The white paper traces key milestones from the European Union’s End-of-Life Vehicle (ELV) Directive through RoHS and REACH, showing how “automakers were compelled to not only adjust their manufacturing processes but also implement robust systems for tracking and reporting materials and substances used in their vehicles.”

The paper also documents how electronics suppliers have had to adapt. It notes that “suppliers, many of whom had not previously dealt with such detailed reporting requirements, faced challenges in transitioning to compliant processes,” especially in response to lead-free solder mandates and expanded SCIP database requirements.

In addition to regulatory context, the white paper dives into practical impacts, like the evolving use of the International Material Data System (IMDS) and IPC-1752 reporting systems, shifts in internal business functions, and the growing role of supply chain transparency and responsible sourcing frameworks like IPC-1755. These developments, the paper explains, are not just operational: they are “a natural part of the evolution of data systems.”

“The goal of this white paper is to help electronics suppliers not only stay ahead of regulatory trends but also leverage sustainability initiatives as a competitive advantage,” said Baney.

Part 2 of the series, which is coming soon, will provide actionable recommendations for electronics suppliers, including strategies for lifecycle carbon reporting, future-proofing compliance infrastructure, and deepening OEM collaboration to meet emerging sustainability mandates.

Download Part 1 of the white paper here: http://go.ipc.org/e-mobility-sustainabilitypart1.

Understanding PCB Microsection Preparation and Analysis 101

Date
-

Microsectional evaluation is a critical tool in determining the acceptability of printed circuit boards (PCBs). A properly prepared and evaluated sample provides reasonable assurance that the inspection performed is representative of the overall quality of the final product.

Speaker Bio

William Graver June 18

William Graver has over 36 years of experience in the PCB and PCBA manufacturing industry. Currently, Mr. Graver is a MIT (Master IPC Trainer) in IPC-A-600, IPC-6012, IPC-A-610, and IPC/WHMA-A-620 training programs, a PCBA and PCB Subject Matter Expert (SME) and Business Development Manager for Element Materials Technology (Formally NTS & Trace Labs) in Hunt Valley Maryland. His main areas of focus are IPC Training (Element is an IPC Certification Center), PCBA/PCB Failure Analysis and Business Development.

 

The Engineering Webinar Series will provides FREE, live, monthly educational experiences and videos discussing key design issues surrounding aspects of quality, defect detection & remediation, and design finalization & fabrication. All sessions are recorded and registered attendees will receive a link to the video to watch on-demand. 
 

Harnessing Connections: EWPTE 2025 Draws Nearly 3,000 Attendees

The 2025 Electrical Wire Processing Technology Expo (EWPTE), held May 6-8 at Baird Center in Milwaukee, Wis., provided 2,994 attendees the opportunity to meet, network and learn from the industry leading innovators and suppliers. Two hundred and eighteen (218) exhibitors -- marking the largest number of exhibiting companies in the event’s history -- showcased their products and services spanning an expanded 51,500 net square feet of show floor space.

“EWPTE has been recognized as a top 100 fastest growing show in the United States and is in a spectacular venue and a great city. My own colleagues who attended said this year’s show was an incredible place to learn and in such a specific way that directly applies to what we do,” said Parker Garrett, president, EMSCO and WHMA Board chair. “From my interactions this year, so many attendees highlighted that EWPTE provided them the unique opportunity to come together to find solutions to challenging wire processing problems, though training and education as well as to network and do business with industry leaders and subject matter experts all under one roof.”

Highlights this year included seven professional development courses and 30 technical conference sessions that offered new technical data, practical skills and techniques, and insights from research and case studies; and a keynote from Brian Schneider, Harley Davidson Motor Company, on the company’s wire harness integration into their motorcycles.

Attendees were pleased with the hands-on product experiences the show provided. “I was able to find a new supplier for tough-to-find materials, helping out just-in-time production needs. I was also able to source equipment and compare vendor options that met my company’s specific needs, live in-person and demo vendor prototype products not yet available to the public,” said Bill Givney, director of engineering, Elite Vehicle Solutions.

The exhibitor experience at EWPTE 2025 was equally beneficial. “As an exhibiting company, we enjoyed the opportunity to collaborate closely with the IPC/WHMA team at this year’s show,” said Tom Leach, business development director, Stratasys. “On the show floor, we showcased our wire harness additive manufacturing solutions and presented various customer use cases. These efforts helped us establish valuable new contacts in the electrical applications sector. Overall, the show was a major success, and we are committed to returning next year. We look forward to working with the new customers we met at the event and solving their challenges with a new advanced manufacturing approach.”                                                              

In 2026, EWPTE will return to Baird Center for its 24th year, May 5-7. For more information, visit www.electricalwireshow.com.

Advanced Packaging to System Integration – Trends and Challenges

Date
- (9:30 - 10:15am CDT)

Advanced Packaging to System Integration – Trends and Challenges
 

Speaker:
Dr. Devan Iyer, Chief Strategist, Advanced Packaging, IPC
 

Date & Time:
Tuesday, July 9, 2025
8:30 AM – 9:15 AM (Mountain Time)
 

Location:
3D-PEIM 2025
Golden, Colorado

The future of electronics isn’t just about smaller chips—it’s about smarter integration. In this keynote plenary, Dr. Devan Iyer will explore how advanced packaging technologies such as 2.5D/3D, fan-out, and heterogeneous integration are enabling next-generation applications in data centers, 5G/6G, autonomous systems, IoT, and AR/VR.
The session will also address critical challenges in chip-package-PCB co-design and highlight the materials, processes, and integration strategies shaping the systems of tomorrow.


More Information & Registration:
https://www.3d-peim.org/
 

Sheraton Denver West Hotel

360 Union Blvd
Lakewood, CO 80228
United States

Sheraton Denver West Hotel

Sheraton Denver West Hotel
360 Union Blvd
Lakewood, CO 80228
United States

Components to Systems: Integration Needs, Gaps, Challenges, and Solutions

Date
-

HIR Session with Joint Participation by IPC at 75th Electronic Components and Technology Conference (ECTC) 
May 27, 2025 - 3:30pm – 5:00pm
Room: Texas D
Gaylord Texan Resort & Convention Center
Dallas, Texas

Moderated by industry leaders:

  • Dr. William Chen (ASE)
  • Dr. Ravi Mahajan (Intel)
  • Dr. Devan Iyer (IPC)

Featuring expert speakers and panelists from:
Google • AMD • ASE • Siemens EDA • IME • KNS
 

Topics Include: 

  • Co-design strategies
  • Thermal management
  • Materials and assembly
  • Reliability considerations
  • R&D prototyping capabilities  

This session will explore the critical technologies and collaborations driving successful Component-to-System Integration in today’s advanced electronics landscape.

See you at #ECTC2025! ECTC | IEEE Electronic Components and Technology Conference

Gaylord Texan Resort & Convention Center

1501 Gaylord Trail
Grapevine, TX 76051
United States

Gaylord Texan Resort & Convention Center

Gaylord Texan Resort & Convention Center
1501 Gaylord Trail
Grapevine, TX 76051
United States