26 RESHAPING THE SUPPLY CHAIN www.heraeus.com Issue 3 2026 Power Electronics Europe www.power-mag.com Supply Security Drives Power Electronics Geopolitical tensions and material constraints are reshaping supply chains. Learn why diversified sourcing of both basic and advanced materials are critical for resilient and competitive power electronics. Introduction: A System Under Pressure Power electronics are the backbone of electric vehicles, renewable energy systems, and industrial applications, with nearly 70% of global electricity processed through these technologies. However, increasing geopolitical tensions, regional dependencies, and raw material constraints are introducing significant uncertainty. In this environment, supply chain stability has become as critical as technical performance, forcing manufacturers to rethink not only what materials they use, but where they source them from. Materials and Suppliers as Strategic Choices Materials have always defined performance, impacting efficiency, thermal management, and lifetime. Today, however, material selection is inseparable from supplier strategy. Advanced technologies such as silicon carbide (SiC) demand high-performance substrates and packaging materials. Yet even the best materials cannot deliver value if supply is unstable. This shifts the focus from purely technical evaluation to a broader question: Can my supplier ensure long-term, reliable, and scalable delivery within the region I need? Supply Chains Under Geopolitical Stress Global supply chains for critical materials are increasingly exposed to geopolitical risks, trade restrictions, and regional disruptions. These challenges are also shaping EU industrial policy. The European Chips Act aims to strengthen regional semiconductor capacity, the Critical Raw Materials Act promotes more secure and diversified access to strategic materials, and the proposed Industrial Accelerator Act (IAA) reinforces the focus on European manufacturing and resilient value chains. Relying on a single-region or single-source supply chain creates significant vulnerabilities: Exposure to sudden supply interruptions Limited flexibility during geopolitical conflicts • Increased price volatility and procurement risk For power module manufacturers, this means that supplier selection is now a risk management decision, not just a technical and commercial decision. A key consideration is whether the supplier follows a global dualsourcing strategy for raw materials to
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