The subsequent pandemic, the supply chain bottlenecks that followed, as well as the impact of the conflicts in Ukraine and the Middle East, have almost entirely upended our traditional understanding of supply chains. [...] 2.1 The outsized role of Taiwan Although the global supply chain is deeply integrated and diverse across nations, over the years, analysts have pointed to the outsized role of Taiwan in the global semiconductor supply chain, namely in the foundry market. [...] In the case of Malaysia, while the country is currently benefiting from the US-China decoupling insofar as its encouraging firms to move shop to Malaysia, there is a question of whether Malaysia and investors here would eventually be forced to choose between the Chinese or American market in the long- run. [...] In one 2021 research paper by the UNCTAD looking at the impact of the COVID-19 pandemic on international trade in 2020, it was noted that the pandemic resulted in a decline in trade of around 14% for the average country. [...] The semiconductor supply chain however, is of key focus given the initiatives by Malaysia in increasing the value of the supply chain, coupled with the significance of the semiconductor industry to Taiwan and the push for geographical diversification in light of geopolitical tensions.
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Table of Contents
- Authors 3
- Acknowledgements 3
- Imran Shamsunahar 3
- Alissa Rode 3
- Sharanyah Nair 3
- Table of Contents 5
- Authors ii 5
- Copyright iii 5
- Table of Contents iv 5
- 1. Introduction 1 5
- 2. Understanding the semiconductor supply chain 2 5
- 3. Supply chain disruptions and the shift to resilience 6 5
- 4. Challenges towards building resilience 9 5
- 5. Strengthening multilateral relationships for resilience 12 5
- 6. Trade and Supply Chain Resilience 14 5
- 7. Conclusion 19 5
- References 20 5
- Appendix The Semiconductor Supply Chain - a detailed explanation 27 5
- 1. Introduction 6
- 2. Understanding the semiconductor supply chain 7
- 2.1 The outsized role of Taiwan 9
- 2.2 Malaysia also plays a significant role 10
- 3 Supply chain disruptions and the shift to resilience 11
- 3.1 Background 11
- 3.1.1 Disruptions from disasters 12
- 3.1.2 Disruption due to geopolitical risks 13
- 3.2 A shift towards interventionist policies 13
- In this context the discourse on resilience expanded it was not just about mitigating the effects of disruption but also about efforts to re-shore near-shore or on-shore vital 13
- 4. Challenges towards building resilience 14
- 4.1 High upfront investments 14
- 4.2 Rising costs for consumers 15
- 4.3 Lack of skilled labour 15
- 4.4 Geopolitical tensions and trade restrictions 16
- 5. Strengthening multilateral relationships for resilience 17
- 6. Trade and supply chain resilience 19
- 6.1 How trade agreements can facilitate supply chain resilience 19
- Box 1 Insight on Malaysia Taiwan and semiconductor supply chain resilience 21
- 6.2 Taiwans bid for the CPTPP and supply chain resilience 22
- 6.3 In lieu of the CPTPP focus on bilateral or multilateral cooperation 23
- 7. Conclusion 24
- References 25
- China vows to keep Taiwan out of Pacific Rim trade group 25
- IDEAS roundtable on regional supply chain resilience 27
- The CPTPP Bids of China and Taiwan Issues and Implications 30
- Its Time for Canada to Break the CPTPP Accession Logjam 30
- Appendix 32
- The Semiconductor Supply Chain - a detailed explanation 32
- Notes 34
- A Malaysia that upholds the principles of liberty and justice 35
- Selection of IDEAS Publications 2023 - 2024 36
