Electronics Supply Chain Chaos: Who's Hurt Most – OEMs, EMS, or PCB Makers?

Over the past few years, the electronics industry has been tested like never before. From chip shortages and geopolitical risk to rising costs and ESG pressures, the resilience of the global supply chain has gone from a back-office concern to a boardroom obsession. Supply chains have been put through unprecedented stress, leading to ongoing disruptions and rising costs.

But while everyone is affected, not all players in the electronics value chain feel the pain equally.

So how do OEMs, EMS providers, and PCB manufacturers stack up when it comes to exposure, impact, and ability to adapt? Let’s dive in.

Why supply chains and business processes are still a bottleneck

Today’s electronics supply chains are complex, global, and fragile. A smartphone might depend on silicon wafers from Taiwan, PCBs from China, memory from South Korea, and final assembly in Vietnam – all coordinated just-in-time.

Now, however, that model is being stress-tested by:

• Geopolitical fragmentation (e.g., US-China tech decoupling, tariffs).

• Material shortages (e.g., copper, rare earths, laminates).

• Rising costs across labour, logistics, and energy.

• Environmental and compliance pressure to trace and clean up the chain.

The result? Disruption anywhere in the chain can delay entire product families, impacting both time-to-market and operational agility.

And yet – this is also where strategic procurement and digital supply chain transformation come into play. Automation and digital transformation are essential to streamline operations and reduce human error, ensuring that disruptions are minimised.

Who’s feeling the heat – and why

Let’s break down how the three key stakeholders in the electronics ecosystem are being impacted, and how modern supply chain strategies can mitigate that impact. Implementing best practices in supply chain management, such as strategic sourcing and supplier collaboration, can significantly mitigate these impacts.

OEMs

OEMs face high strategic exposure. Component shortages, long lead times, and abrupt part obsolescence have forced frequent design changes and delayed product launches. Rising pressure to bring innovation to market faster, combined with limited visibility into upstream risks, makes supply chain ownership increasingly critical. Balancing product development with proactive sourcing strategies is now essential for competitiveness.

How modern supply chain strategies can solve it:

• Strategic sourcing and co-design: align procurement with R&D to design around high-availability, multi-sourced components.

• Supplier tier mapping: visibility beyond Tier 1 to proactively manage risk across the full network.

• In-house capacity and dual sourcing: from building proprietary chips to engaging with alternative fabs, OEMs are taking ownership.

Impact: Very High, as OEMs carry the ultimate strategic risk – if they can’t ship, they can’t earn.

EMS providers

EMS companies are squeezed in the middle – responsible for delivering on aggressive production targets while facing unpredictable part availability and shifting BOMs. They struggle with rising operational costs, faster turnaround expectations, and a need to continuously adapt production lines. Optimising inventory positions through effective supply chain management can significantly improve cash flow for EMS providers. Without real-time visibility or flexible procurement systems, EMS providers face significant execution risk.

How modern supply chain strategies can solve it:

• Digitally connected supply chains: using AI and analytics to balance demand/supply in real time.

• Flexible sourcing and cross-referencing: build systems to validate alternative parts and qualify secondary suppliers quickly.

• Collaborative forecasting: tighter information sharing with OEMs can smooth production cycles and reduce last-minute changes.

Impact: High, as EMS providers are the “shock absorbers” of the industry – but their flexibility depends entirely on supply chain intelligence and execution.

PCB manufacturers

PCB makers are dealing with escalating raw material costs, shorter lead time expectations, and tighter environmental regulations. A strong design process, including Design for Manufacturing (DFM) practices, is crucial for PCB manufacturers to bring products to market efficiently and successfully. The shift toward high-density, high-speed designs adds technical complexity, while commoditised segments face margin erosion. For many, the ability to secure a stable supply of specialty materials and meet traceability standards is now a key competitive factor.

How modern supply chain strategies can solve it:

• Supplier diversification: build multiple sources for key inputs and localise where feasible.

• Long-term material agreements: lock in pricing and supply on strategic materials.

• ESG-friendly sourcing: comply with customer and regulatory standards while differentiating with transparency.

Impact: Moderate-High, as PCB makers are caught between upstream volatility and downstream expectations – but specialisation and strategic sourcing can shift the balance.

Who’s most at risk – and who’s adapting best?

Big OEMs are taking control – investing in their own chips, redesigning products for flexibility, and pushing for dual-sourcing. EMS giants are doubling down on digital supply chain visibility and automation. PCB makers? Those that specialise in advanced packaging and high-speed, high-layer count boards are better positioned than low-end, commoditised producers. Digitalisation not only transforms these business processes, but also catalyses social change by driving new business models that lead to significant societal transformations.

Leveraging digital technology to transform the electronics supply chain

In today’s fast-paced digital economy, leveraging digital technology is no longer optional, but essential for businesses aiming to stay competitive. Digital technologies such as artificial intelligence (AI), blockchain, and the Internet of Things (IoT) are revolutionising business processes and enabling the creation of innovative business models.

By integrating these technologies, businesses can achieve significant improvements in efficiency, productivity, and profitability. For instance, AI can optimise supply chain management by predicting demand and identifying potential disruptions before they occur. Blockchain technology ensures transparency and security in transactions, while IoT devices provide real-time data that can be used to streamline operations.

Moreover, digital technologies empower businesses to better serve their customers by creating new value chains. For example, companies that have implemented digital supply chain management systems can offer faster and more reliable delivery services. Similarly, businesses that have developed new digital products and services can meet evolving customer needs more effectively.

Business processes + supply chain = competitive advantage

This is more than a tech upgrade – it’s a shift in mindset.

• Automation reduces time lost to manual sourcing and improves speed-to-market.

• Data-driven forecasting improves accuracy and reduces excess inventory.

• Sustainable procurement aligns with ESG goals and unlocks long-term partnerships.

When executed well, digital transformation turns the supply chain from a liability into a strategic asset: one that supports innovation, reduces risk, and drives growth.

The new playbook: supply chain as strategy in digital transformation

The bottom line? In the electronics world, the supply chain is no longer an afterthought – it’s a competitive weapon. The industrial revolution reshaped manufacturing processes and paved the way for modern supply chain strategies by transitioning from manual to mechanised production and introducing new industries and technological advancements. When done right, digital transformation in supply chain operations enables every stakeholder in the electronics ecosystem to unlock growth, efficiency, and resilience. Here’s what that looks like in action:

• OEMs that embed flexibility and redundancy into their sourcing strategies are winning on speed and reliability.

• EMS providers that prioritise transparency and digital visibility are becoming the go-to partners for agile production.

• PCB manufacturers that specialise and secure key upstream materials are positioning themselves for sustainable, long-term growth.

Companies that build resilient, transparent, and responsive networks will lead the next wave of growth. Those that cling to just-in-time, single-source thinking will fall behind.

Are you an OEM, EMS, or PCB manufacturer ready to adapt your supply chain strategy? Let’s talk about how to future-proof your supply chain and turn disruption into advantage.