BCG – Emerging Resilience in the Semiconductor Supply Chain

The global semiconductor supply chain has benefited from cost efficiencies and lower prices due to its integration, but it is also vulnerable to disruptions. Governments and companies are taking action to increase resilience, with significant investments and incentive programs being implemented worldwide. By 2032, wafer fabrication capacity is expected to diversify beyond Taiwan and South Korea, with the US increasing its fab capacity significantly. The US is projected to capture a larger share of global capital expenditures, reversing a downward trend. Resilience in assembly, test, and packaging (ATP) is also being supported through government efforts and foreign investments in countries like Southeast Asia, Latin America, and Eastern Europe. The development of advanced packaging and chiplet technology is driving leading players to build ATP capacity in the US and Europe, aligning with new wafer fabrication capacity.