Supply Chain Matters

NOVEMBER 9, 2022

Both The Wall Street Journal and Bloomberg are reporting that Taiwan Semiconductor Manufacturing Company (TSMC) , the globe’s leading advanced semiconductor device manufacturer, is considering investment in a second U.S. With semiconductor sourcing capability being viewed as “the new oil” in geo-political trade the dynamics are ever changing.

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Supply Chain Matters

AUGUST 30, 2023

The Ferrari Consulting and Research Group, via its affiliated Supply Chain Matters blog calls reader attention to two recently published research papers that address evidence of ongoing shifts in global supply component and end production sourcing. The above seems to imply, from our lens, the movement toward China Plus sourcing activity.

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Supply Chain Matters

OCTOBER 6, 2023

The three specific regions of concern remain the Eurozone, United Kingdom, along with Taiwan. Reported Easing Of Manufacturing Downturn in Taiwan The September S&P Global Taiwan Manufacturing PMI® report was headlined with Taiwan ’s manufacturing sector downturn now moderating by the end of Q3. reported for July.

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Supply Chain Matters

SEPTEMBER 1, 2022

Wei, the CEO of Taiwan Semiconductor Manufacturing Company (TSMC) addressing a tech symposium last week, indicated that an endemic shortage of relatively low-cost semiconductor devices, ranging in cost from 50 cents to $10 dollars, continues to dog global automotive manufacturers in their ongoing volume manufacturing needs.

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Logility

MARCH 29, 2022

You need qualified, vetted suppliers in various global locations who can provide additional capacity when there is a surge in demand or disruption in supply. For example, COVID restrictions in Asia shut down auto production because 70% of chip manufacturing happens in Taiwan and South Korea.

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Supply Chain Matters

SEPTEMBER 3, 2022

The August report cited new order intakes declining for the second consecutive month with indications that excess capacity may be building among the global manufacturing sector. The bottom three were listed as Poland , Taiwan and Myanmar. The top three regions exhibiting PMI growth were noted as India, Australia and Thailand.

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Supply Chain Matters

DECEMBER 4, 2023

Source: JP Morgan and S&P Global, December 2023 Key Highlights in Regional PMI Reporting India’s Manufacturing Sector Accelerates Overall manufacturing activity across India accelerated in November after a deceleration in October. Suppliers continue to have capacity. The reported November value of 48.3 reported in October.

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Supply Chain Matters

JULY 7, 2022

The S&P Global Taiwan Manufacturing PMI® declined to a contractionary of 49.8 for June and noted as a signal of renewed deterioration in the health of Taiwan’s manufacturing economy. Similarly, the S&P Global / CIPS UK Manufacturing PMI® fell to a two-year low of 52.8 in June as business optimism reportedly dipped.

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Supply Chain Matters

JUNE 5, 2023

The latter has been reinforced by the April GSPI Index from the New York Federal Reserve , and now, the reported May GEP Global Supply Chain Volatility Index which indicated that “ for the first time since June 2020, global chain capacity is now underutilized, indicating a shift to a buyers’ market. The May PMI value of 44.3

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Supply Chain Matters

SEPTEMBER 9, 2022

The report, citing two informed sources, specifically indicates that between 30 percent and 50 percent of Foxconn’s and Jabil’s planned production output in August were affected by electrical power rationing. percent according to this same source. More to the point, reports indicate that 2023 sales are forecasted to grow a mere 4.6

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Supply Chain Matters

NOVEMBER 4, 2022

The October S&P Global Taiwan Manufacturing PMI® plummeted to its lowest level since 2009. percentage points below that of September and represented the fifth monthly deterioration in Taiwan business conditions. Noticeably, the Backlog of Orders sub-index declined 5.6 The reported October value of 41.5

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Supply Chain Matters

APRIL 4, 2023

However, we discern some added signs excess inventories and of production sourcing shifts. Source: S&P Global, April, 2023 Highlights of Regional Reporting Developed Regions Eurozone The S&P Global Eurozone Manufacturing PMI® fell again in March to a value of 47.3 compared to the February value of 48.5, The March value of 48.6

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Enterra Insights

JULY 9, 2019

this season, an above-average year is anticipated for East Asia that could affect production of consumer electronics sourced from China and Taiwan and more advanced technology products from Japan and nearby regions.”[1] While Resilience360 predicts a slightly below average number of hurricanes will affect the U.S.

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Supply Chain Matters

DECEMBER 1, 2022

Manufacturing conditions continued to deteriorate within Taiwan which reportedly experienced a further and described sharper decline in operating conditions. The S&P Global Taiwan Manufacturing PMI® for November reportedly rose fractionally to a value of 41.6, after plummeted to its lowest level since 2009 in October.

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Supply Chain Matters

JULY 6, 2023

Source: S&P Global Intelligence, July 2023 Highlights of Regional Reporting- Good and Not So Good Continued Production Expansion Across India Increased product demand and manufacturing activity levels across India during June outpaced all other regions. This country’s June PMI value was reported as 40.6,

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Supply Chain Matters

OCTOBER 4, 2022

The orders-to-inventory ratio fell to another multi-year low last month as excess capacity continued to build at factories. The September S&P Global Taiwan Manufacturing PMI® once again remained rather concerning with the reported value of 42.2 Japan, Taiwan ) the average PMI value for Q3 was 49.0, up from a value of 53.7

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Resilinc

AUGUST 31, 2021

Companies and countries investing in new capacity is also driving shortages because the equipment to make semiconductors is highly automated,” said Vakil. Resilinc’s research indicates that staffing issues arising from the pandemic were a major source of the spike. Why would a factory fire or chemical spill occur as a result of COVID?

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Supply Chain Matters

DECEMBER 13, 2023

Such actions were to include mitigation of risks related to China based sourcing, which is now commonly referred to as a China Plus sourcing strategy. That was followed by a public acknowledgement from CEO Tim Cook that the company’s 60 percent sourcing of various production within the country was too much.

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Supply Chain Matters

DECEMBER 14, 2022

Some regions, particularly Europe, China and Taiwan are more exposed to these product demand constrained forces. The S&P Global Taiwan Manufacturing PMI® i ndex was reported as its lowest level since 2009 by the end of October 2022 while the S&P global Eurozone Manufacturing PMI® fell to a 29-month low.

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Supply Chain Matters

SEPTEMBER 17, 2022

A further factor was that air cargo rates are now down upwards of 80 percent because of lower volumes and excess capacity among carriers and commercial airlines. The carrier’s Asia based operations have a concentrated focus on moving goods from manufacturing hubs in China , Taiwan or Singapore. Are holiday forecasts too optimistic?

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NC State SCRC

JANUARY 1, 2023

Walmart will pay more for domestic sources, but will not be burdened with the inventory and purchasing FOB. As I noted in a prior blog, and as discussed in the New York Times today – Mexico is a great option – but the capacity isn’t there yet. And is there enough capacity to produce the new types of vehicles?

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Resilinc

JANUARY 31, 2022

And the largest net jump in jobs forecast came in computer and electronics due mostly to investment in semiconductor manufacturing such as Taiwan-based TSMC’s $12 billion investment in a 5nm node fab in Phoenix, Arizona. In the electric vehicle battery segment alone, nearly 11,000 new jobs will come from Korean FDI in new U.S.

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Bristlecone

FEBRUARY 26, 2019

Typical results include a 5-10% increase in system response times, a 15-20% reduction in storage capacity and the development of a solid roadmap that enables future readiness. BRISTLECONE DEPLOYS SAP ARIBA STRATEGIC SOURCING SUITE. Download the Bristlecone Diagnostic Service brochure. Ask us how we can improve your bottom line.

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Supply Chain Matters

AUGUST 8, 2022

The overall takeaway from the July data was that global production momentum had begun to stagnate and in some regions such as the Eurozone, Taiwan, and to some extent , certain manufacturing regions of China, PMI values had reached contraction levels. . Global Supply Chain Pressure Index. PMI reports for July.

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EMERGE App

DECEMBER 18, 2018

Business costs will rise for those who are sourcing some or most of their raw materials or goods from China. Taiwan is a prime candidate to replace Chinese exports due to its proximity. A study suggested that drop in Chinese exports will affect Taiwan and Malaysia the most. So, the inevitable will happen.

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HICX Solutions

JUNE 12, 2023

Then commercializing the whole product and making sure you’ve got the right capacities, the right distribution partners, etc. Yash explains, “Whether it’s doing R&D on the right treatment or vaccination for COVID, or getting those approved by different regulatory governments in a very short time period.

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Supply Chain Game Changer

JANUARY 18, 2022

For many years the predominant priority in sourcing has been finding the lowest cost possible. What is the appropriate sourcing strategy going forward? Should you keep work in low cost geographies, establish sources in multiple geographies, or on-shore work into high cost domestic countries? Geographic Sourcing History.

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ToolsGroup

APRIL 1, 2022

28% of global retailers have tried to find alternative sourcing options due to supply chain issues (RetailNext, 2020). Source: Consultancy.UK. Image source: Fortune. Image source: Financial Times. Over 90% of the United States’ semiconductor-grade neon is sourced from Ukraine. Consultancy UK). Supply Chain Dive).

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Supply Chain Shaman

MARCH 21, 2022

” Corporations serve international markets, and the source of rare minerals (so critical for the evolution of the green supply chain) is primarily Asia. Others argue the demise of global sourcing; might I add caution? Taiwan manufacturers 60% of global semiconductors. My response is “Hogwash.”

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Resilinc

JANUARY 24, 2023

Taiwan and China Tensions Conversations and concerns over China invading Taiwan and what that would mean for the semiconductor industry were a plenty in Q4. Currently, Taiwan dominates the global chip industry with 65% ownership; China comes in second. What was the cause of these shortages?

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Vinculum

JULY 1, 2022

The marketplace is popular in Taiwan, Hong Kong, Macau, and other adjacent regions and is the leading eCommerce site in Singapore. eBay generates money through various sources, including listing and valuation fees, service costs, contractual service expenses, lead-referral commissions, and other sources. Carousell Singapore.

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Supply Chain Matters

AUGUST 9, 2022

Yet, this legislation is not unique from a global perspective in that many other countries and regions including China, Taiwan, South Korea, Japan the Eurozone , are already spending billions on such incentives. In June, Taiwan based GlobalWafers Co. More Strategic Stakes. Indeed, today marks an important and significant U.S.

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Logistics Bureau

JULY 25, 2022

A growing global warehouse capacity crunch. Supply challenges arising from the war will hit many industries, with electronics being a prime example, since Russia and Ukraine are both sources of materials such as palladium and neon , vital for the manufacture of semiconductors. Warehouse Capacity Under Pressure.

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Supply Chain Matters

DECEMBER 7, 2022

Supply Chain Matters highlights added information regarding Taiwan Semiconductor Manufacturing Company’s (TSMC) expanded presence and investment in U.S. These are the smallest and most technology advanced chips currently available, and for the most part, production has come directly from the chip maker’s Taiwan based facilities.

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Supply Chain Matters

MARCH 21, 2024

As Supply Chain Matters has highlighted in our prior industry specific coverage, industry dominants Samsung Electronics and Taiwan Semiconductor Manufacturing Company (TSMC) are also investing in U.S. Noted in interviews with sources is a realization that facility construction costs are four to five times higher than what they would be Asia.

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Supply Chain Matters

MARCH 21, 2024

Global capacity constraints came to the forefront during the global wide Covid – 19 pandemic period, when a global wide shortage of such devices considerably impacted automotive production and other equipment output. and European export controls and pouring capital into legacy chip making on a breathtaking scale.”

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Supply Chain Opz

JANUARY 22, 2016

This is how Dell managed to make limited supply of different products to meet demand after the Taiwan earthquake. For example, a partner that has been a stellar performer that experiences a decline, whether a sharp drop or a repeated gradual erosion, is a source of potential disruption that has yet to be realized.

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