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In the meantime, Hyundai’s supply-chain radar was able to quickly identify two South Korean wire harness makers who were looking for opportunities to increase production at their own factories in SouthKorea and elsewhere in Asia, to compensate for disruptions to the Chinese supply chain.
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. Image source: Bloomberg.
Supply Chain Matters highlights concerns raised by automotive industry interests regarding evolving component sourcing among China based suppliers within Mexico. market entry to that of Japanese automakers on the 1970’s and SouthKorea based makers in the 1990’s. Inflation Reduction Act passed in 2022.
The alternative supply chain or “ Altasian” is defined as countries consisting of Japan, SouthKorea, Taiwan, India, the Philippines , Indonesia, Singapore, Malaysia, Thailand, Vietnam, Cambodia and Bangladesh. billion in population will be the linchpin of an alternative sourced Asian supply network. All rights reserved.
Globally, governments around the world are upgrading their procurement functions with a fresh perspective. The New Government Procurement Act is at the forefront of these reforms, introducing transparency, efficiency, and accountability in public spending. The Philippines has enacted the New Government Procurement Act (Republic Act No.
Restoring More Direct Control in Materials Sourcing. Prediction Two of this year predictions indicated the following: Restoring More Direct Control in Strategic and Tactical Direct Material Sourcing Will be the Driving Force for Businesses and their Supply Chain Management Teams in the Coming Year. Mid-Year Assessment.
and France investing heavily in developing and procuring advanced UAM systems for commercial operations. Ann noted, “We can manage product complexity by providing one accurate source of product information for the entire product team, including your global supply chain.
Supply Chain Matters highlights an additional strategic sourcing announcement involving the future production of electric powered autos and vehicles in North America. SouthKorea based LG Chem announced this week a planned $3.2 Announcement. and other global regions. That further adds to fulfilling U.S.
Samsung already has a presence in the area in what is described as the largest fab facility outside of the company’s SouthKorea corporate headquarters. and Europe to actively consider tax incentives and other policy measures that would lead to more domestic sourcing of semiconductor production. has to do so as well.
Examples are: Samsung Electronics , which is shifting part of its domestic phone production to Vietnam due to the rapid advance of COVID-19 in SouthKorea. In the future, businesses will diversify their supply chains and source locally so they are not as dependent on one procurementsource as they are now.
Background On July 9 th Supply Chain Matters alerted our readers to reports that production workers at Samsung Electronics had initiated a labor disruption strike action involving this company’s semiconductor production facilities in SouthKorea. Reportedly the labor union is seeking a 5.6
Striking Workers Temporarily Return to Work On July 9th Supply Chain Matters alerted our readers to reports that production workers at Samsung Electronics had initiated a labor disruption strike action involving this company’s semiconductor production facilities in SouthKorea.
Various industry supply chain and procurement management teams are obviously going to have to differentiate as to two different narratives presented in these separate reports. The June report commentary made special note for SouthKorea being viewed as the bellwether for exports of key industry supply network intermediate materials momentum.
Containers are piling up in ports, international shipping has been hammered, Western companies are battling to source products from traditional suppliers, and disruptions are being experienced throughout the global supply chain. COVID-19 Impact on Procurement. And, according to some analysts, things could get worse—a whole lot worse!
Latest Iteration Last week the Government of SouthKorea announced plans to foster the globe’s largest concentration of semiconductor supply network capabilities over the coming two decades. Added Thoughts Both SouthKorea and Japan are being positioned by evolving U.S, based capabilities.
SouthKorea has now become a concern as well as that regions manufacturing activity is now at a contraction level not seen since 2020. . . SouthKorea. Select Regional Highlights. United States. The reported August value of 47.6 represented a 2.2 percentage point from July’s reported value.
For instance, the bankruptcy of SouthKorea’s 7th largest shipping company (Hanjin Shipping) led to a dramatic reduction in global supply chain shipping capacity. Source raw materials from reclamation centers where possible. Procurement departments must take the full burden of ensuring supplier consistency.
Citing sources familiar with plans, The Wall Street Journal report ( Paid subscription or metered view ) indicates that the semiconductor producer plans to announce in the coming months the building of a second cutting-edge plant north of Phoenix, Arizona , a presence that the chip maker originally committed to in 2020. has to do so as well.
Samsung follower SamMobile.com reports that Samsung is boosting its use of domestic Korean sources for expandable components in semiconductor manufacturing. For supply chain managers charged with semiconductor procurement, this statement from TSMC CEO CC Wei may be of the more direct interest.
Solid growth levels were once again reported for India, along with positive growth indicators for the United Kingdom and SouthKorea. manufacturing and procurement activity levels, namely the ISM Report on Business Manufacturing PMI , and the S&P Global U.S. United States The two followed indices of U.S.
Earlier this month, Bloomberg , citing informed sources, reported that Tesla was close to a preliminary deal to establish a factory in Indonesia to leverage the regions’ supply of key metals utilized in battery production. His 2018 effort led to a Securities and Exchange Commission settlement and this consequent shareholder lawsuit.
Renewed Expansion in SouthKorea The S&P Global SouthKorea Manufacturing PMI® was headlined with a reported renewed expansion in the country’s manufacturing sector at the start of 2024. The SouthKorea Customs Office indicated that export increases in memory chips and semiconductors have driven the rise in exports.
Bloomberg pointed to exports to markets including Australia , Brazil , Japan , Taiwan and SouthKorea declining by double-digit percentages as well. A further factor are ongoing efforts by manufacturers and retailers in initiating less reliance in termed China Plus materials and production sourcing alternatives.
Paid subscription ) Citing informed sources, the report indicates that Samsung now plans to invest upwards of $44 billion in an advanced logic microprocessor fabrication complex just outside of Austin, Texas. Investment Regarding Nvidia , SouthKorea based SK Hynix announced last week plans to invest upwards of $3.9
SouthKorea. We continue to make mention of the S&P Global SouthKorea Manufacturing PMI® which continues to reflect a theme of a quickened downturn in the country’s manufacturing sector. The September PMI value fell deeper into contraction at a reported value of 47.3, slipping 0.3 percentage points from July’s value.
SouthKorea recently announced plans to foster the globe’s largest concentration of semiconductor supply network capabilities over the coming two decades. One prominent area has been that of semiconductor design, fabrication, and assembly needed to support deemed strategic domestic industries and national defense needs.
This week the SouthKorea headquartered company reported quarterly financial results for the March 31 ending first quarter. Performance reportedly topped equity analyst expectations while posting a record consolidated revenue for the third consecutive quarter. All rights reserved. .
Source: S&P Global Intelligence and compiled by The Ferrari Consulting and Research Group 2024 Select Regional and Country Highlights Eurozone Manufacturing Contraction Continues The HCOB Eurozone Manufacturing PMI® report for September was headlined with euro area manufacturing activity falling at its steepest pace thus far in 2024.
Australia, France, Switzerland, the USA (and individual states) and Mexico also have legislation in force, while the Netherlands, SouthKorea and New Zealand are among the countries with legislation either proposed or passed but yet to come into force.
Further indicated were signs of weakness occurring in China , Japan , Malaysia, SouthKorea , Taiwan and Vietnam. Source: S&P Global and Other Sources. Report authors noted that sector data of new orders indicated that contraction occurred across consumer, intermediate and investment goods industries.
Financial Performance SouthKorea based key supplier of high tech and smartphone semiconductor and memory devices, Samsung Electronics, reported disappointing Q4 and 2023 full year financial performance results.
However, the published index indicated expansion level was rather mild, and was missing PMI data from SouthKorea which experienced a slight PMI contraction. We view such an indicator as clear evidence that sourcing for lowest cost manufacturing is again apparent among multi-industry supply networks.
Samsung Electronics reported an over 21 percent rise in quarterly revenues for the SouthKorea based company, but the numbers reportedly ended a streak of three consecutive quarters of record revenue growth. Two noted bellwethers of consumer electronics and high-tech supply networks are Samsung Electronics and Apple.
This index complies a data set of 2 chosen variables for each of the economies of the Eurozone , China , Japan, SouthKorea , Taiwan, the United Kingdom and the United States. A relatively new index is The Global Supply Chain Pressure Index (GSCPI) , developed by a group of researchers at the U.S. Federal Bank of New York.
A follow-on report by Bloomberg indicated that deals were potentially in progress involving China based BYD , and SouthKorea based Hyundai Motors , in addition to Tesla. Reports cautioned that a deal had not been signed and could not come to pass.
Strategies include sourcing more items directly from manufacturers to improve margins, SKU rationalization and space reduction, “show more carry less” and assisted-store ordering. About 40% of VF Corp’s production is sourced from the Americas, more than double the industry average. PST will ship the same day.
Kevin Nelson, a chief procurement officer and senior vice president at BD, agreed to be interviewed on this topic. Mr. Nelson points out that it is possible for a sourcing problem deep in a supply chain to halt production for BD. If there is only one supplier in the world providing a critical component, “do I need to dual source?
In fact, JOC.com sites many Southeast Asia countries—including India, SouthKorea, Taiwan, Thailand, and Indonesia—have significantly grown their imports into the United States, anywhere from 13-37% compared to last year. This shows importers are shifting their sourcing locations to countries other than China.
Supply Chain Matters has provided readers multiple commentaries focused on the shifting forces, both geo-political and industry generated, that are now providing short and longer-term impacts on the sourcing of semiconductor manufacturing and associated networks. sourced design technology for China ’s major chip designers and fabs.
Yet, this legislation is not unique from a global perspective in that many other countries and regions including China, Taiwan, SouthKorea, Japan the Eurozone , are already spending billions on such incentives. billion partnership to expand smartphone chip production in upstate New York.
Ford and China based Contemporary Amperex Technology (CATX) have plans to build a domestic sourced battery production facility in Michigan. and the subsequent Biden Administration efforts to have legislation enacted to favor domestic sourcing of production as well as technology providers deemed favorable to U.S. This planned $3.5
In a previously published Supply Chain Matters commentary in February, we highlighted Ford’s plans to operate and manage a battery production plant in Michigan , with technology collaboration from SouthKorea based battery producer CATL who will license its intellectual properties for battery technologies to Ford. powered EV’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. sourced capability. All of the above is likely to be expected given that the U.S. So much so that the level of government subsidies is significant, in the hundreds of billions.
Source: S&P Global Intelligence, ISM and Other Sources and compiled by The Ferrari Consulting and Research Group Regional and Country Highlights India Among manufacturing regions, manufacturing conditions in India continued to be the strongest in output levels. Aluminum reportedly led to this increase followed by electrical items.
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