The electronics supply chain is under pressure: tariffs and geopolitical tensions are reshaping the European industrial landscape. While the global semiconductor market continues to grow, Europe’s position remains fragile. The impact of U.S. tariffs, material shortages, and logistical challenges threatens both continuity and competitiveness. Let’s analyse the main factors of instability, their effects on the European economy and the strategies companies and institutions are using to strengthen supply chain resilience.
The global semiconductor market is expected to grow by 9.5% in 2025, but demand is uneven: some supply chains risk overload, while others remain underutilized. Added to this are geopolitical tensions and trade restrictions, which increase the risk of delays in the most critical chips. In response, companies are focusing on nearshoring and supplier diversification strategies to maintain continuity and resilience.
Unlike the pandemic crisis, today’s challenges are more structural and long-term, rooted in tariffs and geopolitics, and they require new operational strategies. In Germany, material shortages affect over 12% of companies in the sector—up from 6% only a few months ago. The OECD highlights how global supply chains are particularly fragile when it comes to critical inputs such as semiconductors, with ripple effects across entire industries. In Europe’s automotive sector, dependence on non-EU components heightens the risk of disruption in the event of tariffs or logistical issues.
Semiconductors remain the most critical point in Europe’s supply chain. As of April 5, 2025, new U.S. tariffs of 10% on all imports, including chips, have increased cost and delivery pressures. However, on August 21, 2025, the U.S. and EU reached an agreement setting a maximum tariff cap of 15% on European semiconductors, excluding production machinery. This measure aims to prevent tariff escalation and protect strategic manufacturing.
This scenario makes it crucial for companies to map their supply chains and identify bottlenecks, monitor product availability and global stock levels of critical and/or essential components to ensure early warning in case of sudden changes and, if necessary, seek reliable alternative suppliers. This approach has been emphasized by the European Parliament, as can be seen from the measures it has taken to strengthen the resilience of defense supply chains, including bottleneck mapping, early warning indicators and the assessment of critical products.
Reliability is not just about component availability; it is also about their quality. That is why Electronic Partner supplements its supply chain monitoring with tests and inspections to ensure the authenticity and technical quality of electronic components. Checks covering functionality, solderability, and decapsulation help to prevent non-compliance, reduce production downtime, and strengthen operational continuity throughout the supply chain.
The temporary exemption of semiconductors, smartphones, and computers from U.S. tariffs limits the direct impacts, but high-tech sectors remain vulnerable to indirect effects: rising costs along the supply chain, trade diversions, and increased pressure from global competition.
Rising tariffs also complicate nearshoring strategies: shifting production closer to customer markets is not simple and could significantly increase costs and supply chain risks, slowing expected benefits and increasing exposure to political and logistical uncertainty.
On the other hand, external tariffs—such as those imposed by the Trump administration—have highlighted the fragility of the European single market, which is often more hindered by internal barriers than by external tariffs.
According to the IMF, regulatory inefficiencies within the EU are equivalent to 44% tariffs on goods and 110% on services. These logistical and regulatory difficulties, highlighted by companies such as Umicore and AkzoNobel, have become a catalyst for necessary reforms. The EU is now focusing on removing the most harmful barriers, such as those related to the recognition of professional qualifications and fragmented labeling and waste management regulations.
Future prospects point toward greater single market integration: the European Commission plans to present legislative proposals in 2025 and 2026 to address the most critical barriers.
In fact, attention to internal obstacles—spurred by external trade tensions—could become a true catalyst for making European industry more competitive and resilient.
To face these challenges, European companies are adopting several strategies:
In a context marked by tariffs, bottlenecks, and geopolitical uncertainty, partners who can support businesses with their daily supply chain challenges are crucial. Electronic Partner positions itself as a strategic ally for its customer partners, thanks to:
In this historical moment, the difference between suffering change and seizing opportunities lies in our ability to collaborate, innovate, and look beyond immediate difficulties. With its network and experience, Electronic Partner is well placed to help build a stronger, more competitive, and more autonomous industrial Europe.
With an increasingly complex and fragmented market, collaborating with Electronic Partner’s network can give you a tangible competitive advantage. It gives you access to better conditions, greater supply stability, and innovative tools that can help you to anticipate future supply chain challenges.
👉 Discover how Electronic Partner can help your company strengthen resilience and competitiveness.
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