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Strengthening the Global Semiconductor Supply Chain in an Uncertain Era
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Strengthening the Global Semiconductor Supply Chain in an Uncertain Era

Antonio Varas, Raj Varadarajan, Ramiro Palma, Jimmy Goodrich and Falan Yinug
Boston Consulting Group, 2021
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When you rely on products provided by the global supply chain, you can no longer dismiss geopolitical tensions when they’re far from your home country. Take South Korea and Taiwan. Together, these two countries are responsible for 100% of the production of semiconductors with nodes under 10 nanometers, and each country also happens to be under threat from their immediate neighbors. These aren’t the only vulnerabilities in the global semiconductor supply chain - the entire chain is plagued by a marked lack of redundancies. The Boston Consulting Group has some policy suggestions for governments that want to address the issue.

Summary

Semiconductors are an increasingly important component of modern life, but shortages called attention to supply chain fragility.

Over the last 30 years, rapid progress in the semiconductor industry has allowed for the development of smartphones, cloud servers, and automation. Semiconductors are also vital to modern versions of cars, critical infrastructure, and national defense. Semiconductors will drive transformative future technologies.

The semiconductor supply chain has successfully fed the burgeoning demand for information technology so far, but shortages beginning in 2020 made it clear that the supply chain is vulnerable to disruption. 

The semiconductor supply chain contains at least 50 points...

About the Authors

Antonio Varas, Raj Varadarajan, Ramiro Palma, Jimmy Goodrich, and Falan Yinug are professionals with the Boston Consulting Group.

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