6 Electronics Sourcing Trends to Watch for in 2025

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Technological advancements, evolving supply chain dynamics and a focus on sustainability all impacted the electronics landscape in 2024. Supply chain resilience, continuity of supply and rising business costs also impacted the sector, much of which is now focused on the incoming presidential administration’s threat of higher tariffs. 

As we look ahead to 2025, here are six key trends that could reshape the industry and how electronics are made, procured and/or utilized: 

1. The focus on manufacturing resilience will grow. Disruptions like the COVID-19 pandemic and geopolitical tensions highlighted the vulnerability of global supply chains. This isn’t going to go away during the coming year. “In 2025, manufacturers will prioritize building more resilient supply chains to protect themselves against future disruptions,” Broadline Components predicts. “This will be especially important in industries like aerospace, where inventory management and uninterrupted electronic component sourcing are vital to keeping production on track.”
   
   
2. Demand for more sustainable electronic component sourcing will grow. Sustainability is no longer just a buzzword; it’s becoming a critical priority for both manufacturers and consumers. “As the global focus on reducing carbon footprints grows, the electronics supply chain will be pressured to adopt greener practices,” Broadline points out. “[In] 2025, we expect to see widespread efforts to make electronic component sourcing and manufacturing more sustainable.”
   
   
3. Advanced semiconductors will drive the next wave. In “2025 and Beyond: Our Trend Predictions for Electronics Manufacturing,” EM Solutions discusses how advancements in semiconductors—including both front-end and back-end segments—are poised for significant advancements in 2025. It says innovations in semiconductor technologies—such as advanced packaging, system-on-chip (SoC) designs and new materials like gallium nitride (GaN) and silicon carbide (SiC)—will drive the next wave of electronic devices. “These advancements will enable higher performance, lower power consumption and enhanced functionality in electronic products,” the company adds.
   
   
4. Chiplets: the future of semiconductor design. The semiconductor industry is rapidly evolving and Semiconductor Engineering’s Steve Brown says chiplets are at the forefront of this transformation. Chiplets allow designers to mix-and-match components from different vendors, leading to greater product customization and expedited upgrades. “The shift from traditional monolithic system-on-chip (SoC) designs to chiplet-based architectures is gaining momentum, driven by the need to meet ever-increasing computing demands,” Brown writes. “This evolution is not just a trend; it represents a fundamental change in how we approach SoC design, driven by the pressing challenges of cost, complexity and time to market.”
   
   
5. More reshoring and nearshoring is inevitable. In “6 Trends Shaping Electronic Component Supply Chains,” Adam J. Fleischer highlights the key forces that are exerting influence on those networks this year. Most of the trends will carry over into 2025, with the reshoring and nearshoring trend being one of them. “Rising costs overseas and increasing geopolitical risks are driving factors, and companies are working diligently to reduce their dependence on far-away suppliers,” he writes. “By localizing production, companies aim to enhance supply chain resilience, shorten distribution times and reduce vulnerabilities that come with global disruptions.”
   
   
6. Cybersecurity will become an even bigger priority. With the growing digitization of supply chain operations, cybersecurity has become a top priority for many organizations. “To protect against increasing cyber threats, companies are investing heavily in securing their physical and digital assets,” Fleisher writes, noting that this includes implementing rigorous vetting processes for suppliers and ensuring strict compliance with comprehensive security standards. “As supply chains become more interconnected and reliant on digital tools, the need for state-of-the-art cybersecurity systems and practices will continue to grow.”