IDEAS Policy Brief - Semiconductors: Navigating Supply Chain Resilience and Trade - Authors: Imran Shamsunahar, Alissa Rode, Sharanyah Nair

chain bottlenecks that followed, as well as the impact of the conflicts in Ukraine and the Middle The economic impact of the semiconductor East, have almost entirely upended our traditional industry is significant in various countries. [...] The various inputs • Malaysia’s role in the global semiconductor to fabrication of an integrated circuit typically crosses market is one that goes back to the early more than 70 international borders before the fi nal 70s and has played a vital role in the nation’s product can be delivered to consumers (Alam et. [...] country primarily focuses on the backend of the supply chain; assembling, testing, and packaging • In 2019, the United States comprised 38% of the (ATP), which contributed 13% to global back- total value added in the global semiconductor end operations in 2023 (Malaysian Productivity supply chain due to its dominant position in chip Corporation, 2023). [...] The subsequent report emphasised the vulnerability underscores the shift to supply need for the US to rebuild domestic semiconductor chain resilience. [...] 4 Semiconductors: Navigating Supply Chain Resilience and Trade • Taiwan’s potential role in the CPTPP offers in tandem with Taiwan’s potential accession significant opportunities for enhancing to the CPTPP and the move to diversify supply chain resilience, particularly in the supplier locations for resilience.