Managing Editor of Procurement Pro, Paige Hookway, interviews Dale Ford, Chief Analyst at the Electronic Components Industry Association (ECIA)
Speaking at the EDS Leadership Summit 2026 in Las Vegas this week, Dale Ford, Chief Analyst at the Electronic Components Industry Association (ECIA), said the first half of 2026 has seen “a very healthy positive state” across most component markets.
Ford said passive components have returned to growth after a prolonged downturn, while semiconductor categories excluding memory and logic, including analogue, microprocessors, and discretes, have also achieved more sustained expansion. “It’s a very positive, encouraging environment where we’re seeing growing markets across the board,” he said.
He added that industry performance is running ahead of expectations, based on ECIA’s monthly and quarterly surveys, which have repeatedly shown conditions outperforming forecasts. However, he cautioned against over-optimism, warning against “irrational exuberance”.
A major driver of growth, Ford noted, is the semiconductor sector’s rapid expansion, which is now approaching the long-anticipated $1tn milestone. He said forecasts have been brought forward to early 2027, but suggested the threshold may be reached sooner, driven disproportionately by memory products.
Memory chips, he said, now account for roughly 50% of the semiconductor market, compared with a historical average of around 25%, a shift largely fuelled by demand from artificial intelligence infrastructure.
Ford rejected suggestions that artificial intelligence is forming a speculative bubble comparable to the dotcom era. Instead, he argued that the sector’s main constraint is not demand, but supply chain bottlenecks, particularly in memory and power infrastructure.
“It’s not enough just to get the chips to build the data centres,” he said, pointing to electricity supply and other inputs as additional constraints. He highlighted high-bandwidth memory as a particular pinch point, describing it as a “golden screw” in the supply chain due to its disproportionate silicon intensity and limited availability.
He added that memory pricing has risen sharply over the past year, increasing by as much as tenfold in some cases, placing significant strain on procurement planning and inventory management.
On tariffs, Ford said ECIA member companies are navigating an “extremely challenging” and fast-changing environment, with no unified industry response. Instead, firms are relying on guidance, legal expertise, and association-led briefings to interpret shifting policy.
He said recent regulatory volatility has “whipsawed” distributors and manufacturers, given the longer lead times required to adjust supply chains compared with the speed at which trade rules can change. ECIA has hosted government officials and legal experts to help members manage compliance risks and avoid penalties, including in relation to export controls involving Russia and other restricted destinations.
Counterfeit risk remains a persistent concern during periods of supply disruption, Ford added, noting that shortages and long lead times have historically driven procurement towards non-authorised channels. ECIA’s central mission, he said, is to “champion the authorised channel” through white papers, communications, and member certification schemes.
Despite pressures from e-commerce procurement, price volatility, and excess inventory cycles, Ford said the authorised distribution model remains resilient, albeit with thin margins and limited room for error. Distributors, he said, are increasingly working with manufacturers to detect double ordering and avoid a renewed inventory glut, particularly in memory products.
On artificial intelligence, Ford argued its impact is structural rather than cyclical. He pointed to power constraints, local resistance to data centre construction, and geopolitical competition, particularly with China, as long-term demand drivers. “The first one in wins,” he said, describing AI infrastructure as strategically significant as well as commercially important.
Looking ahead, Ford said ECIA is focused on improving supply chain transparency and industry capability through digital tools and training. Its platform, trustedparts.com, provides pricing, availability, and lead time data, alongside a new capability to report carbon footprints in partnership with SLLEX.
The association is also expanding its continuing education programme, known as PACE, which provides structured training for new entrants to the industry, and developing specialist committees covering areas such as cybersecurity and tariffs.
Ford said industry sentiment at this year’s event is more positive than a year ago, but still tempered by caution. “Everybody’s enthusiastic,” he said. “But there is also a healthy dose of caution.”
