How is the electronic supply chain going to evolve in the next 12 months and what impact will this have on purchasing departments both opportunities and threats?
Over the next 12 months, the electronic supply chain will remain uneven, driven by geopolitical tensions, shifting trade policies, and structural demand changes. “Inventory is King” as the market cycle once again turns and supply chain relationships will be challenging in some areas but as always in this Industry engineers will find new ways to design, and new supply chain relationships will be forged and upward momentum will be strong.
AI is already reshaping the market. We’re seeing sustained pressure on memory – particularly HBM and DRAM – as well as on advanced power semiconductors and components supporting data center infrastructure. Allocation in these areas will remain tight.
At the same time, ongoing global tensions are impacting logistics routes, insurance costs, and lead times across selected component categories, adding another layer of complexity for procurement teams.
For purchasing departments, this creates a dual reality. In many areas, availability is becoming more constrained, and pricing is firm at best but also rising on increasing across more commodities. In others, risk management, supplier diversification, and forward planning remain critical.
The winners will be those who combine strong supplier relationships with real-time data and the agility to respond quickly to market shifts.
Mark Burr-Lonnon – Chief Executive Officer, TME US, LLC
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