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The Single Point of Failure in Supply Chain – Semiconductor Fabrication!

Supply Chain Game Changer

The concept of only bringing in inventory on demand is very compelling when inventories are considered costly, wasteful and cash drains. Deloitte states that the automotive industry lost sales of $210 billion in 2021 alone due to chip shortages. Within Taiwan TSMC and UMC are the largest companies.

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July 2022 Global Manufacturing Indices Indicating Declining Momentum

Supply Chain Matters

Also highlighted was that purchasing activity, stocks of purchases and finished goods inventories collectively rose in July. The bottom three were listed as Poland , Taiwan and Myanmar. . United States. Indices reflecting manufacturing across the United States reflected lower momentum as well. slipping 2.3

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Building Value Networks. Stopping the Backward Slide.

Supply Chain Shaman

Similarly, with the break-up of “The Bells” in the United States in 1982, personal networks grew more open. The only two successful and transformational public networks were driven by Walmart and Taiwan Semiconductor (TSMC). By the early 2000s, phone calls to Europe from my cell were expensive but manageable.

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Build Resilient Supply Chains That Weather Disruptions 

Logility

Can the United States be far behind? This then provides new insights for faster decision-making, automated planning, and the elimination of time, inventory, and risk throughout your supply chain. 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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Global PMI Levels in July Remain of Concern

Supply Chain Matters

The two special regions of concern are the Eurozone and Taiwan. Further indicated were signs of weakness occurring in China , Japan , Malaysia, South Korea , Taiwan and Vietnam. In the dependent region of the United Kingdom , the S&P Global/CIPS UK Manufacturing PMI® deepened to a seven month low of 45.3 from the 44.8

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Added Headwinds for Global PMI Production Indices in June and Q2 2022

Supply Chain Matters

United States. Indices reflecting manufacturing across the United States were subdued as well. 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. Select Regional Highlights.

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November 2022 PMI Indices Point to Further Global Wide Production Contraction

Supply Chain Matters

There are additional signs of a global glut in overall inventory levels, yet selective component shortages remain for certain industries. Of increased concern was indications that rates of decline accelerated in China , while output levels in the United States contracted after 29 months of consecutive growth. United States.