Supply chain crises affect many supply chains, but two industries are more critical than others because they affect many supply chains: semiconductors and automobiles. anti vibration table We will consider these two industries in detail before we go into supply chain diagnostics and the causes of global supply chain breakdown.

Semiconductors, also known as chips, semiconductor test are essential components found in most physical and digital systems. They consist of billions of transistors, capacitors, and resistors stacked on top of silicon. While we often associate semiconductors with computers and smartphones, their usage goes far beyond that. In fact, they are the heart, brain, and lungs of various devices we use daily - from washers and dryers to coffee makers and refrigerators. They even play a crucial role in our cars, industrial equipment, and robots. With the rise of the Internet of Things (IoT), these devices not only interact with us but also communicate with each other. This can be helpful when receiving reminders to change printer cartridges or oil but can also become concerning when considering the potential for devices like Alexa to contact authorities without our knowledge.

Semiconductors are essential for almost every aspect of modern life. They play a significant role in the global economy, making up more than 22% of the world's GDP through digital economic activities. voltage probe Notably, China's export market heavily relies on semiconductors, ranking them as their fourth largest traded product. The chips found in our smartphones and computers are designed by various companies, including China's central processing unit and image processing cores. These components are present not only in personal devices but also in industrial electronics, consumer electronics, automotive technology, and wireless infrastructure. In our smart homes and kitchens, we use semiconductors without even realizing it. Even a typical car contains over 1,400 semiconductors that manage everything from seat-belt warnings to engine RPMs - essentially turning your vehicle into a computer on wheels. Like air, semiconductors are ubiquitous, and we depend on them for daily living.

This shows that the worldwide supply chain and semiconductor supply chain are intertwined. Even non-durable goods such as textiles and organic products rely on semiconductor technology for production and transportation. Unfortunately, the semiconductor industry is heavily dominated by a few key players. In 2020, TSMC and Samsung stand out not only for their market share, but also for their almost exclusive production of the most advanced chips (currently 5nm, soon to be 3nm). Communist China's presence in the industry is limited (accounting for around 25% of global production) with minimal capabilities for cutting-edge chip production. The recommendation of risk managers for a diverse procurement approach clashes with high concentration in a single source of manufacturing inputs. While alternative sourcing can provide resiliency during disruptions, the reality remains that concentration persists.