Global Policy Analysis on Semiconductor Localization

Global Policy Analysis on Semiconductor Localization

Building Self sufficiency in Semiconductor Manufacturing for Competitive Advantage

Semiconductors are essential blocks of all modern-day electronic devices and enable Mega Trends, such as connected and automated ecosystems across industries. However, supply chain disruptions resulting from the impact of the COVID-19 pandemic, the US-China trade war, and the China-Taiwan conflict are at the center of global semiconductor policies. Other disruptions, such as the Russo-Ukrainian War, South Korea-Japan tensions, and North Korea’s presence, continue to threaten the industry’s growth.

Countries are aggressively investing in strengthening their local semiconductor ecosystem to reduce the reliance on a few South Asian countries.

In addition, vendors are seeking to collaborate and strategize their regional investments to leverage government initiatives for chip localization.

The global study focuses on efforts by the semiconductor industry to strengthen its manufacturing footprint and value chain, including design and IP, assembly, testing, and packaging. Encompassing the semiconductor ecosystem across major global regions (United States, China, Europe, Japan, Taiwan, South Korea, and India), the deep-dive analysis highlights semiconductor policies, investments, and positioning across value chain processes. It also analyzes how various regions’ growth prospects will evolve over the next 10 years.

The report presents a roadmap for the selected regions, outlining strategic recommendations to sustain or gain a competitive advantage in the semiconductor ecosystem. Additionally, the study analyzes the feasibility of a highly globalized industry pursuing self-sufficiency, primarily growth opportunities related to reshoring, sustainability, friend-shoring, nearshoring, digital transformation, talent management, and ecosystem development.

The study also provides an analysis of additional critical areas:

• Chip lead times and future outlook

• Timeline of the industry disruption and transformation from trade war to tech war

• Strategic interests of policymakers for each process step in the semiconductor value chain

• Sustainability aspects of semiconductor manufacturing and the role of policies

• Impact of the policies on the semiconductor industry’s $1 trillion dream