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.
Specifically, the semiconductor supply chain is susceptible to four risks.
Covid-19 is likely to accelerate the move towards more resilience in the semiconductor industry.
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