TAIPEI, Dec. 22,
2024 /PRNewswire/ -- According to the news report
from the technology-focused media DIGITIMES Asia, The White House
issued what it describes as the inaugural Quadrennial Supply Chain
Review on December 19, 2024, which
the incumbent Biden-Harris Administration says represents its
efforts to strengthen economic security and build resilient supply
chains.
According to the administration, the review outlines government
initiatives aimed at addressing supply chain risks, bottlenecks,
and efficiency. The White House suggests these efforts are
contributing to job protection and community development across the
country.
Manufacturing initiatives and supply chain
perspectives
US Secretary of Commerce Gina
Raimondo stated, "Strengthening supply chains and
revitalizing America's position in semiconductor manufacturing has
been a cornerstone of the Biden-Harris Administration's agenda from
the very beginning."
She added, "This review underscores our commitment to partnering
with industry to proactively address supply chain challenges,
develop innovative solutions, mitigate future disruptions, and
bring back American manufacturing. By working together, we are
bolstering economic and national security and building supply
chains that can meet the demands of tomorrow—particularly in
critical sectors like information and communications technology and
semiconductors."
SCALE tool introduction
The Department of Commerce's (DOC) Supply Chain Center has
introduced its SCALE supply chain risk assessment tool, presenting
initial findings in the Review.
According to the DOC, SCALE aims to enhance the government's
capability to assess resilience and vulnerability, using more than
forty indicators to evaluate current or prospective risk across the
US goods economy.
The department suggests this tool will strengthen its industry
collaboration efforts around supply chain risk, noting that
building resilience requires coordination between public and
private sectors.
Assessment findings and implications
The Review's assessment indicates most US goods industries show
exposure to structural supply chain risks, with nearly every
industry reportedly scoring high in at least one risk indicator.
According to the analysis, the US goods economy shows significant
interdependence, with more than 86% of industries reportedly
depending on inputs from other industries classified as medium-high
or high-risk.
The review suggests US goods industries demonstrate limited
import diversification, reporting that nearly 38% of industries
rely heavily on single-country-sourced products, with over half
showing minimal source-country diversification for critical inputs.
The assessment identifies electronics, chemicals, and
transportation among the highest-risk industries, citing high
import levels from certain countries, including China, as potential risk factors.
Strategic initiatives and industry developments
The Review highlights several DOC programs reportedly aimed at
strengthening supply chains, particularly in ICT and semiconductor
sectors, including the CHIPS and Science Act, BEAD Program, Tech
Hubs program, and Public Wireless Supply Chain Innovation Fund.
The administration reports that private investment announcements
in semiconductor and electronics sectors have reached over
US$450 billion since its term began,
which it attributes largely to public investment initiatives.
Current challenges and industry perspectives
According to the Congressional Research Service, over 90% of
advanced semiconductor production is concentrated in East Asia, with TSMC reportedly accounting for
more than half of this production.
The Semiconductor Industry Association (SIA)
reports that US semiconductor manufacturing market share declined
from 37% in 1990 to 12% in 2020. The CHIPS Act, allocating
US$52 billion, aims to address this
trend, according to administration officials.
McKinsey & Company analysis suggests supply
chain diversification could potentially reduce reliance on
high-risk regions by 25%, though the firm notes this would require
significant coordination and investment. Experts from
the Peterson Institute for International
Economics (PIIE) emphasize that successful reshoring
efforts would likely require coordinated policies, infrastructure
development, and workforce training programs.
The DOC indicates it will continue to develop policies aimed at
supply chain resilience, though the long-term impact of these
initiatives remains to be seen.
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SOURCE DIGITIMES ASIA
