One year ago we wrote a blog on the The Challenges of Electronic Component Supplies in 2025.  We thought we’d look back and see what’s changed, and what’s still the same.

Politics and trade policies

We predicted a ” shift towards protectionism, tariffs and trade restrictions” and this has to some extent come true.  Tariffs are a massive unknown factor, with policies being announced and  changed at a moment’s notice.

There has also been a strong shift to inshoring by major US chip manufacturers and users, moving capacity away from Taiwan and China.

The supply chain for AI

We predicted that the strong demand for processing power for AI might not continue to grow.  So far, that’s not happened, but the fundamental cause for concern is still there.  The capital spent on AI is not generating enough revenue to give investors a return on their investment.  The valuation of AI companies far exceeds what their income can support.  At some point investors will stop looking towards a bright future, and start wanting a return.  The risk of a collapse AI company share prices still exists.

Obsolescence happens more quickly

The rate of change in component design, especially of processors for use in AI, continues to accelerate, which means the rate of obsolescence also continues to accelerate.

Geographic single points of failure

We wrote how semiconductor manufacturing is centred in a few companies in a few countries. China is looking outwards more and more, and America is looking inwards more and more, which will be a concern to the people and government of Taiwan.

Change is the only constant

As we wrote last year, we have been successfully managing change for more than thirty years.  Now, it’s more than 40 years. We can say now, just as we did last year, that whatever happens in 2026 we will continue to solve your component sourcing problems.