Semiconductor Supply Chain Analysis

Heavy dependence on Asia for semiconductor manufacturing has put undue stress on the whole supply chain in recent years. Demand–supply imbalance across the world has led to chip shortages, compelling various governments and corporates to take immediate steps to address the supply shocks. While policy makers are focusing on promoting localization, various semiconductor companies are ramping up investments to expand capacity. Notwithstanding the heightened efforts on the policy as well as investment front, supply constraints are expected to prevail in the near term.