BCG: If all countries establish self-sufficient local supply chains, semiconductor prices will rise sharply

According to a recent report released by Boston Consulting Group (BCG), if major global semiconductor players all establish a completely self-sufficient local supply chain, the overall price of semiconductors will increase by 35% to 65%, and will also drive up the prices of electronic products and equipment.

According to its estimates, assuming that major global semiconductor players such as the United States, Europe, mainland China, Taiwan, Japan and South Korea all establish completely self-sufficient local supply chains to meet their current semiconductor needs, they will need to spend at least an additional $1 trillion in upfront investments such as research and development and capital expenditures, and an additional operating cost of $45 billion to $125 billion per year.

Boston Consulting Group pointed out that the global semiconductor supply chain is highly specialized, which enables the industry to continue to innovate in technology, create huge economic value, and benefit consumers. Therefore, decision-makers in various countries need to consider targeted policy measures, including dispersing semiconductor manufacturing bases, to strengthen the resilience of the global semiconductor supply chain to cope with technological innovation in the next decade.