Electronics Manufacturing Powers U.S. Growth, Supporting 5.2 Million Jobs and $1.8 Trillion in Output

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A new report from the Global Electronics Association, “Powering the U.S. Economy: The Economic Reach of Electronics Manufacturing,” finds that U.S. electronics manufacturing remains a powerful 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 electronics 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 competitiveness.

“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,” said John W. Mitchell, President and CEO of the Global Electronics Association. “Strengthening the electronics industry is essential to America’s economic future. In an era of uncertainty, our members are proving that strategic investment and skilled talent can shift volatility toward stability.”

The industry directly employs 1.3 million Americans, offering average annual wages of $156,000—more than 20 percent above the broader manufacturing sector. These high-skill roles span design, fabrication, assembly, and testing, reflecting the industry’s deep integration into the nation’s innovation ecosystem. Yet a persistent shortage of skilled workers continues to constrain growth and threatens the long-term competitiveness of U.S. electronics 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, demonstrating 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 fabrication capacity.
• Texas supports more than 330,000 total jobs across semiconductor, defense, and communications technologies.
• Oregon, Massachusetts, and New York continue to anchor specialized clusters in semiconductor fabrication and precision instruments.

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 vulnerabilities. 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, government–industry partnership focused on:

• Workforce Investment: Develop and sustain a next-generation workforce capable of supporting advanced manufacturing and systems-level innovation.
• Infrastructure Modernization: Upgrade the physical and digital infrastructure essential for state-of-the-art PCB fabrication and electronic assembly.
• Strategic Supply-Chain Partnerships: Strengthen and diversify U.S. supply chains to safeguard national security and enable domestic manufacturers to compete globally.

“Electronics manufacturing is the connective tissue of the modern economy,” said Chris Mitchell, Vice President of Government Relations for the Global Electronics Association. “When U.S. policymakers invest in our people, infrastructure, and supply chains, they reinforce the foundation of America’s long-term competitiveness.”

For the full report, visit here.