Pacific International Executive Search presents yet another installment in our midyear industry insights series, this time focusing on Electronics and Semiconductors.
In this report, Zach Fountain, Sector Lead for Electronics and Semiconductors at Pacific International Executive Search, provides a perspective on market developments in the first half of 2025, the challenges and opportunities shaping the remainder of the year, and career considerations for senior professionals evaluating their next steps.
Key Developments & Challenges
At the half-year mark, the industry presents a nuanced landscape. The downturn in the EV and broader automotive markets at the close of last year led to a period of contraction across much of the sector, the effects of which continue to influence performance in 2025. Compounding these challenges are ongoing geopolitical tensions and trade disputes, which have left strategic planning subject to rapidly shifting conditions.
Inflationary pressures and rising costs have also tempered consumer demand, while government funding has been slower to materialize than anticipated. These factors have impacted plans for expansion and the development of new greenfield sites.
Despite these challenges, there are areas of sustained momentum. Advanced semiconductor companies continue to see strong demand across multiple applications, and specialized electronics providers are benefiting from the growth of data center infrastructure. While the overall market is moderating, select segments demonstrate resilience and continue to thrive.
Trends
Lean and Continuous Improvement (CI) initiatives remain central to operational strategy. Organizations are prioritizing efficiency and cost optimization even in a softer market. A notable development is the increasing adoption of AI tools to enhance productivity and decision-making.
Consequently, there is rising demand for Business and Lean Leaders who not only understand operational excellence but can also integrate AI capabilities effectively. This combination of skills is becoming a differentiator in today’s environment.
Predictions
Looking ahead, there are indications of improvement. Some companies have reported stronger-than-expected H1 results, and trade tensions appear to be gradually easing. Conversations with business leaders suggest an uptick in orders and the reopening of previously paused backfill roles. Organizations are also positioning to add new capabilities to their teams, signaling measured optimism for the second half of 2025.
Career Tips
- Network, Network, Network – Growth varies across the industry, making strategic networking essential. Cultivate relationships with peers, emerging businesses, and key decision-makers in areas showing resilience and predicted growth.
- Leverage AI Skills – As digital transformation accelerates, companies are increasingly seeking leaders who are comfortable using AI to drive business outcomes. Developing a solid AI foundation to become fluent in using various AI tools can speak to your curiosity, taking initiative, and continuous learning mindset and can distinguish you as a candidate.
- Engage with Headhunters – Senior leadership opportunities are often not publicly advertised. Staying connected with executive search professionals, whether myself or my colleagues at Pacific International, provides early visibility into roles and emerging talent needs in this or adjacent sectors.
H2 2025 presents both challenges and opportunities. By staying connected, strategically upskilling, and leveraging industry insights, senior leaders can position themselves for success in the evolving Electronics and Semiconductor landscape.
For a confidential discussion about senior leadership opportunities in these sectors or talent challenges, please feel free to reach out directly to Zach Fountain or Adam Nuzie.