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From semiconductor manufacturers to aerospace and defense organizations, companies in the high-tech and electronics (HTE) sector have had to manage high levels of complexity while operating in fast-moving environments. Artificial intelligence (AI), photonics, and quantum computing, combined with geopolitical supply chain disruptions and increasing regulatory requirements, are raising the stakes even further.
This white paper examines these challenges and outlines a holistic product lifecycle management (PLM) approach that enables HTE companies to significantly improve data quality and build more resilient supply chains.
New Technologies Drive Complexity
Innovation cycles and product diversity in the high-tech and electronics industry continue to accelerate. One key driver is the integration of software, sensors, and connectivity into traditional systems. Another is the increasing adoption of AI. Modern electronic systems are increasingly equipped with AI capabilities for applications such as image recognition and autonomous control.
Emerging technologies expand the technological foundation
A range of emerging technologies is contributing to this shift. New subdomains, such as photonics, are further expanding the technology landscape. Unlike traditional electronics, which rely on electrical signals, photonic systems process optical signals. Typical use cases include fiber-optic data transmission and, increasingly, semiconductor manufacturing.
Photonics is one of several technologies expected to play an important role in the future, enabling higher data transfer rates while reducing energy consumption. At the same time, this increases technical complexity, as manufacturers must integrate optical and electronic systems. However, research is not standing still. More broadly, a range of emerging technologies has already been implemented or is undergoing rigorous testing. Some examples include:
- Quantum computing for solving complex problems faster than current supercomputers
- Neuromorphic chips that replicate neural structures of the human brain
- New semiconductor materials such as graphene for sub-two-nanometer structures
- Brain-computer interfaces enabling direct human-machine interaction
- DNA-based data storage for high-density long-term archives
Together, these developments illustrate the increasing technological breadth companies must manage.
Uncoordinated changes as a source of errors
While some of these developments are still emerging, they will continue to increase complexity across the HTE industry. Simultaneously, new regulations and supply chain dependencies add additional pressure. Companies must manage these factors to remain competitive.
The key capability for companies is the ability to manage complexity across the entire product lifecycle. High-tech products pass through multiple stages, from development to production to market launch, and changes occur at every stage. Uncoordinated changes often result in errors and high costs, particularly when issues are discovered late in the process.
Complex supply chains and increasing risks
The supply chain has become a critical factor. Electronics manufacturers, in particular, collaborate with numerous external partners. Design, manufacturing, and procurement are often spread across multiple companies. This distributed structure makes coordination more difficult and increases vulnerability to delays.
The regulatory center of gravity for electronics is now split between EU product-market rules that create de facto global requirements, and US/North American import, disclosure, and chemicals rules that intensify upstream supply-chain due diligence.
In addition, new regulatory requirements are emerging, including:
Digital Product Passport (DPP) under the Ecodesign for Sustainable Products Regulation (ESPR) requires detailed information on materials, components, and supply chains. Companies must demonstrate which substances their products contain and where they originate.
Security by Design under the Cyber Resilience Act (CRA). The EU requires manufacturers of connected electronic products to incorporate security measures from the outset. To ensure success, development processes, supply chain controls, documentation, and much more must be adapted.
TSCA PFAS Reporting (US) requires manufacturers and importers to report on the use of per- and polyfluoroalkyl substances (PFAS) across products and supply chains. The regulation impacts a wide range of industries, including electronics, by increasing transparency requirements for components, materials, and chemical substances.
Uyghur Forced Labor Prevention Act (UFLPA) introduces strict import controls into the United States, requiring companies to ensure that goods and materials are not linked to forced labor. This regulation significantly increases the need for end-to-end supply chain traceability and documentation, particularly for upstream sourcing and manufacturing processes.
CHIPS and Science Act (US) introduces requirements and incentives aimed at strengthening domestic semiconductor manufacturing, with increased expectations for supply chain transparency, trusted sourcing, and secure production environments. Manufacturers must enhance visibility across engineering, suppliers, production, and compliance documentation to meet evolving government and security requirements.
Version control and data integration enable consistent processes
The growing number of components and product variants requires strict version control. Every change can have an impact on the product or the entire ecosystem. Without clear versioning, data becomes inconsistent, undermining process stability and traceability.
At the same time, many companies still operate with fragmented system landscapes. Data is distributed across multiple tools, creating silos and limiting visibility. Decisions are often based on incomplete or outdated information, leading to delays and higher development costs. A connected data foundation and robust digital thread can significantly reduce these challenges.
“Without centralized control of product data, visibility is quickly lost.”
Leon Lauritsen, CEO of Aras
The high-tech and electronics industry is under increasing pressure due to rising product complexity and fragile supply chains. In this interview, Leon Lauritsen, CEO of Aras, explains how a consistent data foundation is the key to success.
- The high-tech sector is evolving rapidly. What is driving this development?
One of the main drivers is the growing complexity of products. Software, sensors, connectivity, and increasingly, AI capabilities are being integrated. At the same time, companies are expected to deliver faster, even as products become more sophisticated.
- What exactly does complexity mean in this context?
It exists on multiple levels. On the one hand, technical depth is increasing. Products today range from individual chips and circuit boards to systems of integrated software. On the other hand, new technologies such as photonics or AI are being introduced. Without centralized control of product data, maintaining visibility becomes very difficult.
- What role does product lifecycle management play here?
PLM creates a consistent data foundation. All product information, changes, and versions are managed centrally. This ensures that everyone is working with the same information and that risks can be identified early.
- Another key topic is collaborating with external partners. Why is this so challenging?
The development and production of electronic products are highly distributed. Companies work with R&D partners and suppliers across the globe. Information is therefore not created in one place, but in many locations simultaneously. This makes coordination significantly more complex. PLM provides a reliable and transparent platform for collaboration across all stakeholders.
- What is the overall impact of the supply chain?
It has become a critical factor. High-tech companies often depend heavily on individual components. If a component becomes unavailable or is discontinued, it can affect the entire product. At the same time, the supply chain is often opaque. Many companies lack visibility of the risks within their supply networks, making planning more difficult.
- How can this be addressed?
One solution is to integrate suppliers via dedicated portals. In modern PLM systems, external partners can access current product data in a controlled manner. Changes are communicated automatically. In one project, for instance, a mechanism was implemented and immediately notified suppliers of any changes to components. This eliminates the need for manual communication via email and ensures full traceability of who was informed and how they responded. This significantly improves process reliability.
- What role does data quality play?
Data quality is critical. Many issues arise because information is incomplete or outdated. Decisions are then based on unreliable data. A consistent data foundation, the digital thread, ensures that all information is aligned. Only then can complex products and supply chains be managed effectively.
- What does this mean for companies in practice?
Companies need to actively manage complexity. Optimizing individual processes is no longer sufficient. A holistic approach across the entire product lifecycle is required. Those who succeed can implement innovations faster and remain competitive.
The Aras HTE Solution
Without a clear structure, companies in the high-tech and electronics industry cannot manage the increasing complexity of their operations effectively. Disconnected engineering, component, quality, and compliance systems create blind spots that delay decisions and increase risk. Aras addresses these challenges through an integrated, lifecycle-wide approach that connects data, processes, and stakeholders within a governed digital thread.
A holistic system
Many companies still rely on isolated systems, where data and processes remain disconnected, and decisions are often based on incomplete information. The Aras HTE solution brings these elements together on a single platform, connecting product definition, quality management, supplier collaboration, and compliance within a unified data model. Instead of relying on static handoffs between tools, teams work from a shared, continuously updated product record with full lifecycle context. This ensures that information remains consistent and current across all stages, from design and manufacturing to service. The digital thread connects data across the lifecycle, providing a stable foundation for execution, traceability, and control.
Product definition and change management
Aras integrates product definition, change management, and material management within a single, governed environment. In practice, changes constantly occur in HTE environments, driven by new components, discontinued parts, or evolving requirements. Without structured processes in place, these changes can lead to production issues and increased costs.
In high-tech environments, product definition spans multiple domains, including electronic computer-aided design (ECAD), mechanical computer-aided design (MCAD), software, and component engineering. Aras connects these domains through a unified, multi-discipline bill of materials (BOM) and change process. Printed circuit board (PCB) design data, component structures, and reference designators are managed within the same controlled environment.
All changes are centrally governed and fully traceable. Bills of materials, versions, and technical data remain consistent across domains. Engineering changes are managed end-to-end, with their impact visible across all affected areas before release. This reduces version mismatches, prevents costly late-stage rework, and improves cross-functional alignment.
Quality management with direct feedback
In many organizations, development and quality management operate separately. Consequently, issues are often identified too late, making root cause analysis complex and costly.
The Aras HTE solution connects these areas. Error reports, corrective actions, complaints, and recalls are captured and linked centrally. This creates a closed feedback loop in which quality issues are traced back to the exact product configuration, component, or supplier involved, and the resulting insights are fed directly into engineering and change processes.
Quality data is continuously linked to the evolving product record, enabling faster root cause identification, more effective corrective actions, and the prevention of recurring issues in future designs.
Integrated supplier management
High-tech and electronics companies collaborate closely with a wide range of external partners. This dependence means that delays or disruptions have an immediate impact on production and service processes.
Aras integrates suppliers directly into the platform, providing controlled access to current product data within a governed environment. Instead of relying on email or spreadsheets, suppliers participate in processes such as engineering changes and quality management with full visibility into the latest product definition.
All changes, responses, and decisions are captured and remain fully traceable. This improves coordination and response times, reduces the risk of working with outdated information, and strengthens control over IP, access, and process execution.
Efficiency through integration
By connecting multi-discipline product data, component intelligence, compliance, quality, and supplier collaboration in a single digital thread, Aras enables faster execution, improved resilience, and more informed decision-making across the lifecycle. Because Aras is built as an open and extensible platform, companies can integrate it into existing engineering and enterprise environments without replacing their entire system landscape. As processes and technologies evolve, the platform adapts.
New Services for Governance-Compliant Integration of PLM, Partners, and Agent-Based AI
Aras InnovatorEdge is a new addition to the Aras platform that is designed to support the secure integration of AI into existing product development processes. The goal is to enable the use of AI throughout the entire product lifecycle without sacrificing control, context, or governance.
Three core services form the foundation:
- API Management: Product data and processes can be made available to external applications and AI systems in a controlled and secure manner.
- Application Development: Business teams can quickly create and deploy lightweight, task-specific applications tailored to their needs.
- Agent-Based AI: AI agents can perform defined tasks within workflows and access current, context-relevant product data.
Together, these features create the conditions necessary for the adoption of scalable AI in industrial environments, providing secure and traceable access to product data and processes across the entire
digital thread.
Kamstrup Scales Smart Metering Operations
Kamstrup, a global provider of intelligent metering solutions for water and energy utilities, has expanded its operations across multiple regions. As the company grew, process and operational complexity increased.
Building a scalable PLM foundation
To address these challenges, Kamstrup established Aras Innovator® as a central platform for managing product data and processes across the organization. This enables centralized management of parts, bills of materials, configurations, and change processes. Standardized product documentation ensures that consistent data can be shared across multiple production sites, allowing local teams to operate based on reliable and up-to-date information.
Global collaboration with consistent data
By structuring product data and processes within a unified PLM environment, Kamstrup can deliver standardized data packages to production sites worldwide. This enables efficient collaboration, reduces dependency on local knowledge, and ensures that all stakeholders work from the same product definition.
In addition to improving operational scalability, Kamstrup uses Aras Innovator to address increasing supply chain and regulatory challenges. The platform provides visibility into approved parts, alternative components, and suppliers.
A foundation for scalable growth
Today, Kamstrup benefits from a consistent data foundation. Product data is centrally managed, processes are standardized, and collaboration across sites and partners is significantly improved. As a result, the company can scale its operations globally while maintaining flexibility, data consistency, and control.
Lightium Accelerates AI Data Centers
Integrated circuits that transmit data using light instead of electrons are the foundation of photonics. The Swiss startup Lightium leverages this technology to achieve higher data transfer rates with lower energy consumption. In this interview, Amir H. Ghadimi, co-founder and CEO of Lightium, explains how the company uses Aras Innovator to remain at the forefront of this emerging field.
What advantages do photonics offer in AI data centers, and what challenges remain?
In AI data centers, the main bottleneck is no longer computing power, but rather data transfer between components. This is where Lightium’s technology comes in. It significantly increases data transfer speeds while reducing energy consumption by over 30 percent.
However, the development of such systems is still a relatively new field. Unlike more established industries, such as mechanical engineering, there are no widely adopted standards for product lifecycle management (PLM). Integrations between development tools and PLM systems are also limited. Many approaches are still evolving from research to industrial applications, adding to the overall complexity.
Why did you choose Aras?
We needed a platform that could serve as the backbone for our data and our processes. Aras Innovator stood out due to its flexibility. In a rapidly evolving field like photonics, systems must continuously adapt. Traditional PLM solutions are often too rigid because they are designed for more established industries.
Aras, on the other hand, provides an open platform that allows for customization and extension. It enables us to connect development data, simulations, and design processes, ensuring consistent data flow across the entire product lifecycle.
What benefits does this provide for development and scaling?
The powerful backend architecture for managing BOM, component data, and projects enables scalable production processes. At the same time, Aras provides the flexibility to develop custom frontends for photonics-specific workflows and day-to-day use. As a result, the platform helps us manage the complexity of our development processes more effectively. Data is centrally managed and consistently linked, which improves transparency and collaboration.
It creates a structured approach to development while allowing for flexibility in integrating new technologies. As a result, the platform supports innovation and scalability, two critical factors for success in an emerging high-tech domain.
To Be Competitive, Companies Must Manage Complexity
The high-tech and electronics industry is entering a phase of rapidly increasing complexity. Technologies such as AI, photonics, and new semiconductor materials are expanding technical possibilities while also raising demands on development, manufacturing, and collaboration.
Meanwhile, fragile supply chains, many external partners, and new regulatory requirements, such as the Digital Product Passport and the Cyber Resilience Act, are adding further pressure.
To remain competitive in the long term, companies must actively manage this complexity. Success today hinges less on optimizing isolated processes and more on establishing control across the entire product lifecycle.
The Aras platform for product lifecycle management provides the foundation for this approach. By centralizing data, enabling consistent version control, and integrating processes, the platform creates a digital thread that connects all relevant information and supports real-time, informed decision-making.
Practical examples, as evidenced by Kamstrup and Lightium, demonstrate that integrated platforms improve transparency, strengthen collaboration, and accelerate innovation. These improvements enable companies to keep pace with the growing complexity of high-tech product development and maintain their competitiveness.