Looking back at 2025 – a turbulent electronics year

The tone was set early in the year, when several major semiconductor projects hit the brakes. Fabs were put on hold, jobs suddenly felt less secure, and the optimism that had characterised the post-pandemic build-out began to fade. That moment made it clear that 2025 would not be a year of breakneck expansion; instead, it would be one of reassessment and recalibration. Reporting on those early delays felt like documenting the first cracks in a narrative of unstoppable growth.

As the months went on, it became increasingly obvious that the old semiconductor playbook no longer explained what was happening. Conversations with industry analysts reinforced this shift – the traditional boom-and-bust cycle simply wasn’t mapping onto reality anymore. Demand signals were distorted, inventory patterns misaligned, and forecasting had become a guessing game. The sense that “the cycle is broken” became a recurring theme, signalling a deeper structural change.

And then came one of the most geopolitically charged stories of the year. In late September, the Dutch government took the step of invoking national-security law to assume temporary control of Nexperia, a major chipmaker with deep ties to China. The move, intended to safeguard European supply and critical technology, triggered a swift reaction from Beijing, which blocked exports from Nexperia’s Chinese facilities. Because a large share of the company’s packaging and testing happens in China – even for chips manufactured in Europe – this escalation quickly rippled through automotive supply chains. 

Throughout November, the situation remained fluid. Nexperia’s European arm cautioned customers about uncertainty around components from China, while efforts to restore at least partial chip flows made headlines as companies and governments worked to de-escalate the conflict.

But 2025 wasn’t all about slowdowns and diplomatic tension. Even in the midst of uncertainty, companies made significant strategic moves. Hanza’s acquisition of the German EMS provider BMK, for example, stood out as a moment of confident expansion. By expanding its footprint and capabilities, Hanza positions itself as a significant player – in fact, Europe’s largest listed contract manufacturer.

But it wasn’t the only story of consolidation. Swiss-based Cicor made significant strides in France by acquiring several sites from Éolane and two production sites in the United States and Morocco from Valtronic, while also making a major offer to acquire UK-based TT Electronics. These moves illustrate that European EMS players are actively reshaping the landscape through expansions and strategic acquisitions.

Alongside these corporate shifts, Europe spent much of the year reflecting on its own industrial ambitions. Policymakers, executives, and industry groups repeatedly stressed the need for greater sovereignty, resilience, and capacity. Yet throughout the year, it remained clear that awareness alone is not enough. Europe continued to talk about its ambitions far more easily than it acted on them. That contradiction ran like a quiet undercurrent through many conversations and events, surfacing again and again.

Even as Europe dreams of technological sovereignty, its PCB manufacturing base continues to shrink in plain sight. Writing about that decline felt like capturing a truth that many prefer to overlook: without a strong foundation in core manufacturing, sovereignty remains more slogan than strategy.

Together, these stories form a picture of 2025. The industry didn’t collapse, nor did it surge ahead; instead, it hovered in a state of transition. Strategic moves were made, warnings were issued, and long-term challenges became harder to ignore. If anything, the year served as a reminder that the electronics industry is constantly moving, changing and evolving.