Both China and the US rely on each other for vital components, creating a mutual interdependence that will likely necessitate compromise. To help businesses adapt to the challenges posed by the chip war, they must adopt three key strategies:

  1. Diversify the Supply Chain: Businesses heavily reliant on semiconductors must explore alternative sources, particularly if their current supply chain heavily relies on China. Some major companies have already begun diversifying their sources to reduce vulnerability.

  2. Seek Local Suppliers: To minimize disruptions, it's advisable to look for local suppliers where possible. Though these suppliers may have limitations, they can serve as a short-to-medium-term solution to avoid semiconductor supply interruptions.

  3. Continually Review the Market: Staying informed about developments in semiconductor supply chains is crucial for companies in the technology, manufacturing and automotive sectors. Implementing risk detection tools can help identify potential disruptions and enable swift responses.

The US-China chip war is having a widespread impact across industries, necessitating proactive measures for resilience and adaptability.

To delve deeper into this topic and access further insights, you can read the full blog here.

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