Q2 2025 Electronic Component Lead Time Report Highlights

Welcome to the Sourceability Lead Time Report! The same report you love from Sourcengine, just under a different name. Usingreal-time market data and insights from key manufacturers, Sourceability will create a quarterly analysis of global lead time trends across the active and passive electronic component markets. The Q2 2025 edition offers a focused look at how AI acceleration, shifting trade policies, and sector-specific demand are shaping global supply dynamics.  

The second quarter confirmed that stabilization in the semiconductor industry is no longer theoretical. After ongoing volatility and last year’s inventory correction, the market for most electronic components has normalized. Pricing and lead times for logic ICs, microcontrollers (MCUs), EEPROMs, and passive components have found equilibrium thanks to disciplined procurement and cautious demand forecasting.  

However, the calm on the surface belies growing complexity in geopolitically sensitive segments and those outliers with soaring demand. The explosive growth of artificial intelligence and shifting tariff stances continue to add unpredictability to an otherwise steady environment.  

For procurement leaders and supply chain strategists, the second half of 2025 will be defined by how these uncertainties are navigated.  

Q2 2025 Electronic Component Lead Time and Price Takeaways

The headline trends in Q2 remain consistent with Sourceability’s early-year forecasts. Inventories have normalized for most non-AI segments and more conservative ordering strategies have prevented new supply gluts. As a result, most segments are stable, with lead times and pricing remaining mostly flat.  

Where disruption is present, it follows a pattern of ties to AI and high-performance computing (HPC) applications. Components destined for these sectors face longer lead times and higher prices, particularly among DDR4/DDR5, HBM, SSDs, FPGAs, and more.  

Several firms, including Lam Research, have indicated that revenue growth is being driven by the popularity of AI, with supply pressures expected into 2026. A forecast from Gartner projected the global chip market to exceed $1 trillion annually by 2030, largely driven by AI demand and industrial automation. Key Q2 2025 developments include:  

• Memory: Micron and Samsung both project extended lead times and prices for DRAM components thanks to increased AI and server demand. DDR4 and DDR5 supply remains constrained thanks to high demand. This is contributing to increased lead times and prices from ISSI, Kingston, Micron, and Samsung. The latter has also announced plans to phase out DDR4 production by the end of 2025, which will further limit supply.  

• Storage: AI buildouts are also affecting the storage segment, with SSD and eMMC lead times and prices trending upward from Kingston and Micron.  

• Logic IC: Demand for AI training hardware will lead to longer lead times for both programmable and standard logic, though the latter’s price has stabilized while the former’s continues to rise.  

• Discrete: In the discreet segment, MOSFETs are feeling the impact of tariffs and regional variations, causing higher prices and longer lead times from Diodes Inc., Infineon, Onsemi, STMicroelectronics, Toshiba, and Vishay.  

• Interconnects: Tariffs and regional production shifts are driving price increases in the interconnect market, but lead times are expected to remain stable for now.  

These Q2 trends reinforce that, while stability exists in general-purpose markets, AI-driven demand and geopolitical friction are creating isolated volatility. Likewise, ongoing demand for AI-related components continues to obfuscate buying decisions thanks to high pricing and limited supply.  

Quarter-over-Quarter Comparison

Relative to previous quarters, lead times for most categories of the EC market remain stable. However, product segments tied to China-origin materials are facing disruption thanks to ongoing tariff decisions between Beijing and Washington.  

Lead times for passive components, such as MLCCs and tantalum capacitors are within normal ranges as inventory remains sufficient. However, elongation has emerged for certain SKUs due to logistics complications and realignments brought on by tariffs. Suppliers including Kemet/Yageo and Kyocera AVX project higher Q3 lead times.  

Amid this turbulence, over 60% of firms are now reconfiguring their supply chains to reduce tariff exposure. Yet, with CHIPS Act incentives now uncertain and re-shoring efforts still years from maturity, diversification is the prevailing strategy for avoiding tariff-related disruption. Geopolitical pressures are also increasing the need for greater transparency and traceability across the supply chain. In April, TSMC inadvertently ran afoul of U.S. export rules when chips it sold to a third-party were found in a Huawei AI accelerator, highlighting the critical need for more cooperation.  

Through Q3, demand in the automotive, industrial, and AI sectors is expected to remain steady, a trend that will continue to tighten the availability of key components. Meanwhile, consumer electronics demand remains tepid, and with tariff costs being passed on to end users in the coming months, recovery may be delayed.  

Notably, there are also growing concerns about a broader component shortage that could spill over beyond AI and HPC. Although inventories remain relatively stable, the risk landscape is shifting. Whether or not these fears will manifest in the coming months is impossible to predict, but it is a trend worth monitoring.  

In the meantime, organizations are encouraged to strengthen their supplier bases through diversification and collaboration with existing partners.  

For more information and forecasts for AI- and HPC-related components, general-purpose ICs, and parts affected by tariff policy, check out Sourceability’s Q2 2025 lead time report.