European Electronics Manufacturing Revenue Rose in H1 2026
The electronics manufacturing services sector saw a 12.3% revenue jump during the first half of 2026.
Updated on Sept. 23, 2026 in Semiconductors
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The European electronics manufacturing services (EMS) industry grew 12.3% in the first half of 2026 compared to the low point seen in late 2025. Despite this recovery, year-over-year revenue growth for the industry survey group remained largely flat at 0.3%.
Why it matters
Rising demand for high-bandwidth memory in AI applications continues to divert critical wafer capacity from conventional DRAM and NAND production. This shift contributes to selective supply chain tightening across mature-node, automotive, power, analog, and RF components.
The industry maintains a book-to-bill ratio of 1.21 alongside a 14% increase in order backlogs. While Central Eastern European backlogs surged by 36.3%, 38.4% of surveyed companies still report poor or very bad supply chain performance.
The details
Companies are passing component price inflation through to customers as order backlogs swell across the region. Performance varies significantly by location, with Germany seeing a 0.5% revenue decline compared to the previous year and Austria reporting a book-to-bill ratio below 1.0.
Timeline
Late 2025 marked the industry cycle low point.
H1 2026 saw revenue increase by 12.3%.
Full year 2026 growth is forecast by 70% of German firms.
2027 revenue is projected to grow by 8.6%.
The Tech Race
This recovery reflects the ongoing structural shift where AI-driven demand for specialized memory pulls resources from legacy manufacturing nodes. It marks a transition from the post-2024 growth phase toward a more constrained supply environment for conventional electronic components.
Consumers may face prolonged lead times or higher prices for goods reliant on mature-node components like automotive and power electronics. These constraints arise as manufacturers continue to prioritize high-margin AI-related memory production over standard component manufacturing.
The takeaway
The sector remains in a recovery phase, though supply chain bottlenecks for standard components persist due to AI infrastructure priorities. Industry participants should prepare for continued price volatility as manufacturers balance competing demands for wafer capacity.
Further reading
For broader trends in the industry, visit our Semiconductors section.
Source note: This article includes information reported by EMSNow.
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