22 Mar 2023 -
 General

Lloyds: $2.2trn electronics sector put at risk by supply chain

supply chain

Lloyd’s and WTW have published a report on the risks to semiconductor supply chains – an industry estimated to have a market value of nearly $600 billion and supporting a $2.2 trillion electronics sector that in turn drives almost $90trn of global GDP.

“The world’s transition to a digital economy therefore relies on a resilient and thriving semiconductor industry – especially in light of recent global economic and geopolitical shocks,” writes Lloyds in their fascinating new report, Loose Connections – Rethinking Semiconductor Supply

As the semiconductor industry has grown in size, volume, and complexity, the associated risks to business supply chains have also increased. “Anyone looking to buy a new car in 2021 and 2022 would have felt the impact of disruption to semiconductor supply chains, with pandemic-induced manufacturing and logistics challenges creating a gap between chip supply and demand. The value of second-hand vehicles rocketed as a result.”

The digital transformation within the industry will continue and accelerate. Semiconductor companies are increasingly bolstering their collaboration with extended supply network partners so that they can better implement integrated AI, edge computing, 5G communications, and internet of things (IoT) solutions.

Semiconductor manufacturers and other high-tech companies are at the cutting edge of some of the most advanced technologies in the world. Despite that fact, many are still lagging in critical components of their digital transformation, namely supply chain management, the shift to data and services, and integration from mergers and acquisitions.

As with all supply chains, reliance on a global trading system comes at a cost. In today’s complex geopolitical environment, national interests can threaten an ecosystem that has, to date, effectively shared both the workload and the risk.

Read the whole report here

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

For more help with looking at supply chain options, contact Astute Electronics

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