How Covid-19 Changes the Geopolitics of Semiconductor Supply Chains

As one of the most specialised high-value supply chains, the semiconductor industry is characterised by several bottlenecks. It is among the most globally integrated supply chain, yet is highly vulnerable. Devoted to the principle of comparative advantage in the pursuit of efficiency, this industry had forsaken resilience. As a result, this lean and agile supply chain made itself vulnerable not just to a global risk event such as Covid-19 but also to export controls such as the ones directed against Huawei. The events of the past six months are likely to force a re-evaluation of this trade-off towards building more redundancy.

Read the full article at scmp.com.