As we move into the second half of 2025, the electronics industry—particularly in the Printed Circuit Board Assembly (PCBA) sector—continues to evolve in response to a complex blend of global policy shifts, component supply dynamics, and geopolitical tensions. Whether you’re an OEM, design engineer, or supply chain manager, understanding where things stand today is crucial for effective planning tomorrow.
Below, we break down the current state of the PCBA industry and highlight the key factors shaping our operations for the remainder of the year.
Component Supply Chain: Where We Stand in July 2025
While the extreme shortages of 2021–2023 have eased, the supply chain remains uneven and unpredictable depending on the component class. Here’s a quick overview:
| Component Type | Average Lead Time (Weeks) | Notes |
|---|---|---|
| MLCCs (Ceramic Capacitors) | 16–22 | Demand from EVs and IoT still creates pockets of tight supply |
| Microcontrollers (MCUs) | 20–30 | Tier-1 fabs have stabilized output, but specific automotive-grade parts are constrained |
| Power Management ICs | 18–26 | Still long lead times for high-efficiency parts |
| FPGAs | 30–40+ | Lead times remain long due to ongoing design-in commitments |
| Connectors & Wire Harnesses | 8–14 | Stable but longer for custom solutions |
| Passives (Resistors/Inductors) | 8–12 | Fairly balanced inventory across most lines |
Takeaway: If you’re building new assemblies or forecasting Q4 builds, now is the time to lock in long-lead components and build buffer inventory where feasible.
Tariff Environment: Still a Factor
The current tariff landscape remains a persistent cost pressure on U.S.-based electronics manufacturers. While some 301 tariffs originally introduced during the Trump administration were suspended or modified in early 2024, others have been reinstated and even expanded as part of trade recalibrations with China and Southeast Asia.
As of mid-2025:
- 25% tariffs remain on a broad range of PCBs, semiconductors, and assembled components imported from China.
- Certain materials (e.g., copper-clad laminates, solder masks) are still subject to variable duties, depending on origin.
- Components imported from Mexico, Vietnam, and India continue to avoid these tariffs—causing many buyers to shift sourcing to those regions.
“Big Beautiful Bill” & Its Impact on Domestic Manufacturing
In late Q1 2025, Congress passed and President Trump signed into law the so-called “Big Beautiful Bill”, a sweeping industrial policy aimed at strengthening American manufacturing and technology independence.
Relevant highlights impacting the PCBA sector include:
- Tax Credits for Domestic PCBA Production: OEMs and EMS providers who manufacture in the U.S. can qualify for up to 15% investment tax credits on qualifying capital equipment and labor costs.
- Reshoring Incentives: Grant funding and loan guarantees are now being issued to U.S.-based PCB and component manufacturers building domestic capacity.
- Compliance Requirements: Companies receiving incentives must meet strict sourcing requirements, adding administrative burden and traceability mandates.
Implication for Customers: Expect continued movement of assembly work back onshore—but also higher scrutiny on sourcing documentation and domestic content percentages, especially if your end product is part of a federal contract or defense program.
Looking Ahead: 3 Strategic Planning Tips for 2025
As we help our partners plan for the balance of 2025 and beyond, here are a few key considerations:
- Plan Your Builds 6–9 Months Out
With component lead times still stretched for critical parts like MCUs and FPGAs, it’s crucial to get visibility into your Q4 and Q1 2026 builds now. - Understand the Impact of New Legislation
If you’re reshoring or doing business with U.S.-based EMS providers, check if you’re eligible for new tax credits or grants under the new legislation. We’re happy to help you assess this. - Prioritize Supply Chain Resilience
Diversify your BOMs where possible. Consider approved alternates and multiple sourcing to protect against single-supplier risk.
How Poly Electronics Is Supporting Our Customers
At Poly Electronics, we’ve continued to invest in automation, sourcing partnerships, and logistics expertise to help you weather these challenges. Our sourcing team actively monitors pricing and lead time trends, while our engineering team helps optimize your BOM for manufacturability and availability.
Let’s talk now about how we can support your roadmap for late 2025 and into 2026—because in this environment, early planning = cost savings and peace of mind.
Need help reviewing your 2025 builds?
Reach out to your Poly Electronics account manager or email us at info@polyelectronics.us to schedule a free BOM review and supply chain risk assessment.
