How to Improve the Resilience of Supply Chain of China’s Semiconductor Industry Under Trade War

Shiping Cao and Jian Wang ()
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Shiping Cao: Harbin Institute of Technology, School of Management
Jian Wang: Harbin Institute of Technology, School of Management

A chapter in Proceedings of the 2023 4th International Conference on Management Science and Engineering Management (ICMSEM 2023), 2024, pp 884-899 from Springer

Abstract: Abstract Semiconductor industry is one of the most important indicators to gauge a nation’s scientific and technological strength and economic development. Under the context of China-US trade war, the China’s semiconductor supply chain is facing with severe disruption risks. This paper analyses the internal and external environment where China’s semiconductor supply chain is situated, and studies the relevant important influential factors for supply chain resilience. A new systematic evaluation method is proposed to quantitatively analyze the resilience of China’s semiconductor supply chain by establishing an index evaluation system using the degree of exposure, sensitivity, and ability to recovery as the three main measurements. Through the improved grey correlation method, the correlation degree is employed as the index to express the influence of these three factors on the resilience of semiconductor’s supply chain. As a result, the overall resilience of China’s semiconductor supply chain is evaluated as relatively low degree, especially in the segments of key SME, EDA software and talent pool building. To deal with the foreign monopoly in these segments, some policy implications is raised like releasing government initiatives from downstream supply chain, fostering important technologies in a competitive market, and improving talent training system, innovative management system and mechanism.

Keywords: semiconductor; supply chain resilience; trade war; disruption risk; grey correlation method (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-256-9_88

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DOI: 10.2991/978-94-6463-256-9_88

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