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JANUARY 2026 I SMT007 MAGAZINE 61 A new report from the Global Electronics Associ- ation, "Powering the U.S. Economy: The Economic Reach of Electronics Manufacturing," finds that U.S. electronics manufacturing remains a power- ful engine of economic growth and resilience— supporting 5.2 million American jobs, contributing $853 billion to U.S. gross domestic product (GDP), and generating $1.8 trillion in total economic output. Amid slowing global growth, rising tariffs, and persistent inflation, the report highlights how elec- tronics manufacturing is a key anchor of the U.S. economy—driving innovation, sustaining high-wage employment, and strengthening the supply chains that underpin national security and global competi- tiveness. The industry directly employs 1.3 million Ameri- cans, offering average annual wages of $156,000— more than 20 percent above the broader manufac- turing sector. These high-skill roles span design, fabrication, assembly, and testing, reflecting the industry's deep integration into the nation's innova- tion ecosystem. Yet a persistent shortage of skilled workers continues to constrain growth and threat- ens the long-term competitiveness of U.S. electron- ics manufacturing. Electronics manufacturing's influence extends well beyond the factory floor: • Global trade in electronic components exceeded finished goods by $408 billion in 2023, underscoring the industry's pivotal role in international supply networks. • Every dollar of direct output generates $2.25 in total economic activity. • Each direct job supports three additional jobs across the U.S. economy. • Indirect impacts add 1.68 million jobs and $532 billion in additional output, demonstrat- ing the sector's deep interconnection with suppliers, logistics, and professional services. The report finds that the industry's footprint is national in scope but concentrated in key high-tech hubs: • California leads with 260,000 direct jobs and $364 billion in total output, powered by its combination of design leadership and fabri- cation capacity. • Texas supports more than 330,000 total jobs across semiconductor, defense, and commu- nications technologies. • Oregon, Massachusetts, and New York con- tinue to anchor specialized clusters in semi- conductor fabrication and precision instru- ments. Call to Action: Invest in Workforce, Modernization, and Partnerships While America's electronics industry remains a powerful driver of innovation and economic growth, decades of offshoring has created significant vulner- abilities. To ensure the United States remains at the forefront of designing and manufacturing advanced technologies, the Global Electronics Association calls on policymakers to advance a bold, govern- ment–industry partnership focused on: • Workforce Investment: Develop and sustain a next-generation workforce capable of sup- porting advanced manufacturing and sys- tems-level innovation. • Infrastructure Modernization: Upgrade the physical and digital infrastructure essential for state-of-the-art PCB fabrication and elec- tronic assembly. • Strategic Supply-Chain Partnerships: Strengthen and diversify U.S. supply chains to safeguard national security and enable domestic manufacturers to compete globally. Click for access to the full report. Electronics Manufacturing Powers U.S. Growth SHORT At a time when global supply chains are being reshaped by trade policy and geopolitical pressures, U.S. electronics manufacturing continues to power the economy and strengthen our resilience. —John W. Mitchell, President and CEO of the Global Electronics Association ▼