Beyond the China+1 Strategy: How Electronics Sourcing is Adapting to 2025’s Geopolitical Reality

Since 2008, China has quietly reshaped global electronics sourcing, and the China+1 strategy hedges against overreliance on one manufacturing superpower. It underscores a major choice for electronics firms—localization or globalization of component sourcing—which is an inherent result of AI’s emergence.

In 2025, as AI, automation, and geopolitics redefine sourcing, the next evolution beyond China+1 (C+1) will depend on data-driven visibility and supply resilience. However, the question will remain the same: Should we buy local, from overseas, or combine both strategies?

Regardless of the strategy, digitalization has become essential for managing risk in interconnected supply chains. 

The China+1 Strategy in a Nutshell

A great example of this strategy in action is the Chinese automaker BYD, which has delivered exponential growth and vehicles across the globe. For instance, BYD’s expansion into Europe exemplifies the evolution of the C+1 strategy. 

The company demonstrates how to accommodate global scaling and the agility of localized sourcing and manufacturing. And because automotive shares similarities with other consumer electronics, the approach applies broadly. The automaker has established manufacturing facilities in key markets such as Thailand, Brazil, and Hungary, each with its own internal sourcing strategies. 

A large share of electronics firms have expanded their supplier base since 2020, with many also implementing digital procurement. Rightfully so. The evolution of a global supply chain is a major step forward for all countries, but the risk of diversification must be managed for it to be carried out successfully. 

Moreover, with mounting pressure on US trade relations with the rest of the world, risk mitigation has become a core function in procurement and an essential stage in ongoing digital sourcing efforts.

No More Supplier Singularity

There is a crucial transition happening. More countries are claiming their electronics market shares through their burgeoning PCB industries. Mexico, Vietnam, and India (all developing economies) are rapidly expanding their manufacturing capabilities to contribute to the global pool of electronics suppliers. 

It has become more apparent that opportunities for supplier diversity are two-fold. McKinsey’s global survey cites that 73% of respondents leverage dual-sourcing. Deloitte’s survey shows that 57% of industrial manufacturers with operations in China are implementing diversification and multi-sourcing strategically. 

In short, there are more sourcing options and more ways to alleviate risk. Procurement experts are utilizing data to enhance their proactive approach in sourcing parts, acknowledging the possibility of avoiding counterfeiting, obsolescence, and wider supply chain disruptions by having multiple suppliers at their disposal.

As for engineers, they have become more invested in procurement activities as they begin to understand the effects of sourcing and how it can impact product development timelines. 

This is what C+1 represents. It is more than a national regime, but an opportunity for companies to recognize the potential of diversity. However, diversification alone is not enough. As geopolitical shifts intensify, companies often cut corners and invest insufficient energy in maintaining product integrity. Access to reliable data has therefore become essential for managing complex products and diverse supply chain networks.

Octopart, the world’s leading electronic component data platform and search engine, connects engineers and procurement teams to over 679 distributors across regions. It is the tool that enables effective supply chain diversification. With its global network and up-to-date inventory data, Octopart helps teams navigate geopolitical risks and maintain supply chain resilience.

Try Octopart today and keep your next project on track – with smarter research and sourcing from day one.