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A Look Back at 2025 as an Inflection Point
January 28, 2026 | Nolan Johnson, SMT007 MagazineEstimated reading time: 1 minute
For many organizations, 2025 marked the moment when AI experimentation, regional supply-chain diversification, advanced packaging, and highly compressed NPI timelines evolved into a new operational reality. The industry is converging on a more integrated, data-driven, and collaborative form of product realization. EMS providers, PCB fabricators, their respective regional supply chains, and design-tool vendors all have distinct responsibilities within this transformation, and their futures are now more tightly connected than ever. The companies that translate these emerging capabilities into disciplined, integrated processes will take the lead in the years ahead.
This article will examine the seven overarching trends and their impact on both 2025 and 2026.
1. AI-driven Automation Across the Workflow
The adoption of AI across production environments is no longer reserved for early adopters; it has become the backbone of competitive capability. The Global Electronics Association’s 2024 data1 shows a clear shift toward factory intelligence: Companies that act upon aggregated data from MES, ERP, SPI, AOI, and AXI consistently outperform their peers in yield stability and NPI responsiveness. AI is now the strategic lever that determines whether an EMS operation can scale, adapt, and maintain profitability.
In his December 2025 SMT007 Magazine article, “Get Uncomfortable or Get Run Over: How AI Is Reshaping the EMS Industry,” industry expert Mark Wolfe said EMS providers must treat AI-enabled optimization as a foundational investment. Production lines need to support automated process tuning, process optimization increasingly must be driven by historical performance datasets, and predictive maintenance programs should be in place to minimize unplanned downtime. Wolfe has said that yield stability “is underestimated in the short term, but when combined with advanced packaging trends that continue to make rework more expensive, if even possible, those who do not understand and continuously drive defects out of their processes will not survive.”
To continue reading this article, which originally appeared in the January 2026 SMT007 Magazine, click here.
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