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Navigating Global Supply Chain Challenges in Power Electronics Manufacturing
- CorePower Magnetics
- May 8
- 3 min read
Updated: Oct 3
The Imperative for U.S.-Based Manufacturing
Global supply chain disruptions, rising material costs, and geopolitical tensions have significantly impacted industries relying on traditional power electronics components, such as motors, transformers, and inductors. The COVID-19 pandemic and ongoing U.S.-China trade tensions have further magnified these issues, particularly affecting the sourcing of rare-earth materials and the shipping of critical components.
According to the U.S. National Association of Manufacturers, 60% of manufacturers reported supply chain disruptions and rising costs as their primary challenges. Rare-earth materials, crucial for many motor and generator components and heavily sourced from China, have experienced price increases exceeding 200% in the last three years.[1]
As industries like industrial power, data centers, renewables, and grid integration continue to grow, the demand for reliable, efficient, and cost-effective power electronics solutions has never been higher. U.S.-based manufacturing presents a critical solution for mitigating these vulnerabilities and enhancing supply chain resilience.
The Challenges of the Current Global Supply Chain
U.S. tariffs, material shortages, and unreliable overseas production have severely disrupted supply chains for essential magnetic components. Dependence on foreign suppliers—especially in China and Southeast Asia—has increased exposure to trade tensions and geopolitical risks. Supplier delivery times are now the slowest in two years, nearly rivaling pandemic-era levels.[2] These supply chain issues are widespread, significantly affecting sectors such as renewable energy, electric vehicles, grid integration, and data centers, which all rely heavily on high-performance magnetics.
Overcoming Supply Chain Challenges with CorePower Magnetics: A U.S.-Based Manufacturing Solution for Power Electronics
CorePower Magnetics™ addresses supply chain challenges in power electronics by utilizing innovative nanocrystalline core technology and advanced manufacturing processes to produce high-efficiency, high-power custom transformers, inductors, and our standardized inductor family. Additionally, our motor products utilize rare-earth-free materials, reducing thermal losses and significantly improving efficiency and reliability, directly addressing modern industrial demands.
By maintaining complete U.S.-based vertical integration for all products, CorePower ensures rapid market entry, superior cost efficiency, and greater quality control. This approach reduces reliance on unpredictable international supply chains, offering stability and reliability in a volatile global market.
Discover how CorePower is accelerating production timelines with domestic supply.
Cross-Sector Impact
Industrial & Data Center Power
CorePower’s CPMLMAX™ inductors support the critical demand for high-efficiency power conversion systems used extensively in industrial automation and data center infrastructure. The data center industry alone is projected to grow by 15% annually between 2024 and 2028, driven by expanding cloud computing services and AI infrastructure.[3]
Grid, Microgrids & Grid Integration
As renewable energy sources increase their share of electricity generation, grid systems must efficiently manage these variable inputs. CorePower’s advanced transformers and inductors enable renewable energy integration, significantly improving grid stability and minimizing energy losses. By 2025, renewable energy will represent over 40% of U.S. electricity generation, underscoring the growing importance of robust power electronics solutions.[4]
Utilities & Renewable Energy Systems
CorePower offers U.S.-manufactured components specifically designed to enhance the efficiency and reliability of solar inverters, energy storage systems, and wind energy technologies, ensuring these systems operate at maximum efficiency and minimal downtime.
Commercial EV Charging Infrastructure
With the expanding infrastructure supporting electric vehicles, CorePower’s standardized inductors are ideal for DC-DC converters and off-board chargers, ensuring robust and efficient charging capabilities for commercial EV installations.
Oil & Gas
CorePower’s durable, high-efficiency magnetics are specifically designed to meet the rigorous demands of power systems in remote and challenging oil and gas environments, ensuring reliable operations even in extreme conditions.
Aerospace & Defense
Our compact, power-dense components meet the stringent requirements of aerospace and defense applications, offering unmatched reliability, durability, and operational flexibility in mission-critical scenarios.
Investing in U.S. Manufacturing
CorePower Magnetics is at the forefront of a significant shift toward domestic manufacturing, providing efficient and scalable power electronics solutions. Investing in U.S.-based magnetics manufacturing enhances supply chain resilience, supports critical industries, and positions businesses strategically for sustainable future growth.
Looking for Standardized Solutions? Discover CPMLMAX™
Learn more about how CorePower Magnetics can empower your business by visiting corepowermagnetics.com.
SOURCES
[1] Reuters (2025): What are rare earth metals and why are they in demand?
[2] Axios (2025): Pandemic flashback: Manufacturers can't get supplies
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