Electronic Component Shortages: 2025 Outlook

What’s Fueling Electronic Component Shortages in 2025

The headlines may have quieted down, but the pressure hasn’t. Component availability remains unpredictable, and the reasons behind this have only increased. Here's what’s been fueling the ongoing shortage issues manufacturers are still dealing with in 2025:

Lingering Impacts From COVID

 If it feels like component shortages have been dragging on for years, that’s because they have – and the ripple effects are still in play.

The shutdowns during COVID disrupted production schedules, broke forecasting models, and created a global backlog that hasn’t fully cleared. Many teams are still working through mismatched orders and outdated demand projections.

Even with most factories back online, the supply chain remains unstable, especially for long-lead-time components and parts from single-source suppliers.

AI and Industry Demand Keep Climbing

High-demand sectors like automotive, consumer electronics, and industrial automation continue to dominate the components supply. Now they’ve been joined by AI and datacenter builders, all scrambling for the same chips, most notably specialized semiconductors and GPUs. 

Some of those buyers are locking in contracts months (or years) in advance, making it harder for others to respond to shifting demand quickly.

Geopolitical Disruptions Haven’t Let Up

Geopolitical conflicts have only added to the strain. 

Russia remains under sanctions, limiting access to metals and minerals critical for semiconductor production. Ukraine, once a major supplier of semiconductor-grade neon gas, lost much of that capacity after the 2022 invasion. 

Tensions in other regions, including Israel, a key hub for chip R&D, have also raised concerns about possible disruptions.

Skilled Labor Is Still in Short Supply

Even with strong demand, many chip fabs and electronics manufacturers are still struggling to scale up. One reason? Talent. Technician shortages, slow onboarding, and workforce gaps are limiting how quickly facilities can expand production. Without enough skilled labor, the electronic components supply chain faces bottlenecks, regardless of how much equipment or material is available.

What Electronic Component Shortages Could Look Like Next

The pressure on sourcing teams isn’t easing up, it’s just taking new forms. What’s ahead will require as much flexibility as the last few years, if not more.

Tariffs Are Shifting the Cost Landscape

Ongoing trade tensions, specifically between the U.S. and China, are making components more expensive and harder to source. Tariffs on semiconductors and related equipment are forcing manufacturers to rethink their supplier mix and budgeting strategies.

Export controls and shifting regulations are also limiting access to key technologies. That uncertainty is being felt throughout the electronic components supply chain, especially for teams that rely heavily on overseas sourcing.

Scaling Up Isn’t as Easy as It Sounds

Building new fabs and expanding production isn’t a quick fix. It takes months – sometimes years – to bring new capacity online. Equipment lead times remain long, and skilled labor is still hard to find, particularly in regions trying to localize operations.

Even with heavy investment, manufacturers can’t expect overnight relief. These limitations will continue to affect components supply, with OEMs working on complex or higher-spec parts facing the greatest challenges.

5 Ways You Can Prep for What’s Next

You can’t control the global market, but you can control how your team responds to it. These five steps can help stabilize your sourcing process, even when the electronic component supply chain stays unpredictable:

1. Start with smarter inventory planning

2. Rethink your design flexibility

3. Use better data, sooner

4. Strengthen distributor relationships

5. Consider reshoring where it makes sense

1. Start with Smarter Inventory Planning

With electronic component shortages continuing into 2025, buffer stock has become a baseline expectation. Forecasting demand and securing long-lead-time parts early can mean the difference between hitting your launch window or missing it by months.

This doesn’t always mean buying more. It means buying smarter: planning around components supply trends, building in time for delays, and prioritizing parts that are hardest to replace. Teams that stay proactive have more flexibility when the unexpected happens.

2. Rethink Your Design Flexibility

If a component gets hard to source, can your design team adjust quickly – or at all? Revisiting your design for more common or alternate parts can prevent sourcing delays from turning into missed deadlines.

Involve engineers early in procurement discussions so they can identify options before issues arise. Even small design changes can open the door to easier, faster sourcing.

3. Use Better Data, Sooner

Outdated spreadsheets won’t cut it when parts go scarce overnight. Tools like component databases and lifecycle tracking software help you spot risks earlier, before they slow you down.

Real-time visibility into availability, compliance, and obsolescence lets you plan around gaps instead of reacting to them.

4. Strengthen Distributor Relationships

When parts get tight, your place in line matters. For OEMs, strong distributor relationships often mean earlier risk alerts, better alternatives, and more reliable access to inventory.

Stay in regular contact and treat your distributor like part of your team, not just a last-minute resource.

5. Consider Reshoring Where It Makes Sense

Closer suppliers often mean fewer surprises. Lead times shrink, shipping becomes more predictable, and you're less exposed to customs delays or shifting trade regulations. In volatile conditions, local or regional sourcing can bring some much-needed stability.

Reshoring doesn’t have to be all-or-nothing. Some teams are starting small – sourcing just one or two categories closer to home to improve control and reduce risk. Even partial shifts can make a difference when your supply chain gets stretched.

Keep Moving, Even When Supply Doesn’t

No one’s expecting the electronic component shortages to resolve overnight, but that doesn’t mean you’re stuck. The right strategies can keep your projects on track, even when the supply chain doesn’t cooperate.

Staying informed, flexible, and proactive puts your team in a better position to handle whatever comes next. Every small adjustment now can help prevent bigger delays down the line.

See What’s Possible With Matric Group

Struggling with supply chain delays? Our turnkey PCB solutions help OEMs plan smarter, build faster, and stay in control – no matter what the market’s doing.

Editor's Note: This blog post was originally published in September 2018 and was updated in August 2025 to reflect updates in content and insight.