Electronics component inventories are approaching their leanest point in at least five years across the Supplyframe Commodity IQ network, while electronics manufacturers are reporting worsening component availability and longer supplier lead times. The combined signals indicate that the industry's inventory cushion is continuing to narrow.
The Inventory Index for all components tracked by Commodity IQ held near historical lows at a score of 43.7 in August, down 0.04% sequentially and 19.7% year over year. The network index is projected to decline to a score of 42.9 in September, down 1.8% sequentially and 22.4% year over year, marking a new low in the five-year history of the index. From January through September 2026, the network score is projected to fall 13.3%, with sequential declines during every month except July.
The September 2026 projection would extend the network's run of year-over-year inventory contraction to 34 consecutive months, beginning in December 2023. By September 2026, the network index is also projected to stand 58.4% below its October 2023 level, illustrating how extensively the excess inventory accumulated earlier in the cycle has been worked down.
The Global Electronics Association's August 2026 survey shows that the impact of reduced inventories is being felt by manufacturers. In August, 64% of electronics manufacturers said components and materials were available only in limited quantities or with extended lead times, while no respondents described conditions as readily available with excess supply. In the same survey, 44% said component and materials availability worsened in Q2 compared with Q1, and 53% said supplier lead times lengthened.
Inventory lows spread across semiconductor classes
The broad network decline is now being accompanied by five-year lows in several individual semiconductor categories, with the most notable August and September extremes concentrated in power, communications and selected analog-related classes.
The Commodity IQ Inventory Index for consumer circuits fell to a score of 31.2 in August, down 29.6% sequentially and marking an at least five-year low. The sensors/transducers Inventory Index also reached an at least five-year low in August at a score of 47.9, declining 20.3% sequentially.
The power circuits Inventory Index dropped to a score of 46.2 in August, down 25.1% sequentially and marking an at least five-year low. Power circuits are projected to fall again to a score of 44.1 in September, down another 4.5% sequentially and setting at least a five-year low.
Communications-related inventories are also becoming exceptionally lean. The Commodity IQ Inventory Index for RF and microwave reached an at least five-year low in August at a score of 7.4, down 1.4% sequentially, and is projected to fall to a new low in September at a score of 7.0, down 5.3% sequentially. The inventory index for signal circuits is projected to reach an at least five-year low in September at a score of 58.9, down 5.3% sequentially, while the telecommunication circuits are expected to decline to an at least five-year low in September at a score of 78.6, down 6.0% sequentially.
Discrete inventory declines set annual records
The depth of the inventory contraction is also visible in year-over-year growth. The diodes Inventory Index declined 45.3% year over year in August, its steepest annual decline in at least five years. The Transistors Inventory Index fell 46.8% year over year in August, also marking an at least five-year low for annual growth, while trigger devices declined 58.5% year over year in August, the largest annual contraction in at least five years.
Manufacturing demand keeps drawing on supply
North American electronics manufacturing services (EMS) bookings increased 76.0% sequentially and 44.3% year over year in July, while July shipments declined 5.8% sequentially, according to the Global Electronics Association. The EMS book-to-bill ratio stood at 1.29 in July, which the Association interprets as an indication that current demand is ahead of supply. AI infrastructure was one of the strongest areas of contract-manufacturing demand growth.
Lean inventories raise buyer risk
The low network inventory levels are increasing risk for buyers as depleted stockpiles leave less buffer against another acceleration in direct, contract or broad-market demand.
Procurement teams should pay particular attention to power circuits, RF and microwave, signal circuits and telecommunication circuits, where Commodity IQ indicates inventories are projected to establish new five-year lows in September. Buyers should also monitor diodes, transistors and trigger devices, where historically steep year-over-year inventory declines show that supply cushions have already contracted substantially.
The electronics industry has not returned to the widespread shortages of earlier supply crises. However, the combination of a five-year low for the Commodity IQ network, multiple class-level extremes, worsening manufacturer-reported availability and strong EMS orders indicates that the margin for absorbing another demand surge is becoming increasingly thin.