Global electronics activity accelerated in July as sourcing activity rebounded sharply, led by APAC and continued demand for AI infrastructure, while design activity posted modest growth but remained below prior-year levels amid emerging supply and pricing pressures.
July Design Activities:
- Global electronic components design activities increased +3% month-over-month but remained -10% year-over-year in July, marking the sixth consecutive month of below-prior-year activity. Despite the YoY decline, global design activity remained stable and above activity levels observed from 2020–2024.
- Demand continued to be supported by AI data centers, hyperscale cloud infrastructure, industrial automation, and power infrastructure, while activity in the automotive vertical remained more muted.
July Sourcing Activities:
- Global electronic components sourcing activities increased +12% month-over-month and +20% year-over-year in July, driven by particularly strong sourcing activity in APAC.
- July marked the strongest July increase in sourcing activity in the past six years, reflecting continued demand for AI infrastructure and other high-growth technology applications.
- Rising sourcing activity has begun to create selective availability, lead-time, and pricing pressures, particularly across memory, high-performance passives, high-speed interconnects, and power devices.
Calendar Q3 2026 Outlook:
- For Q3 2026, global design activities are expected to decrease -5% quarter-over-quarter, reflecting continued normalization in engineering activity.
- Global sourcing activities are expected to remain flat to +6% quarter-over-quarter, supported by continued demand for AI infrastructure, hyperscale cloud, and other high-performance technologies.
Key Verticals:
- Global design and sourcing activity continued to be concentrated in AI data centers, hyperscale cloud infrastructure, industrial automation, and power infrastructure. Activity in the automotive vertical was more muted in July.