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The US has taken steps to diversify its chip supply chain

10/04/2023

The US Census Bureau reported that in February, the United States imported ICs worth $4.86 billion. Notably, Cambodia, India, Vietnam, and Thailand experienced significant increases in their chip exports to the US. Specifically, India's exports of chips to the US grew by 34% YoY to $152 million, Cambodia's chip exports increased by 698% YoY, Vietnam's chip exports rose by 75%, and Thailand saw a 62% increase in chip exports. However, Malaysia, which has traditionally been a source of test and packaging facilities for IC companies, witnessed a 26% YoY drop in its shipments to the US.

The increase in chip exports from Cambodia, India, Vietnam, and Thailand is likely due to the ongoing global semiconductor shortage, which has forced companies to diversify their supply chains. As a result, many electronics manufacturers have turned to these countries for their chip production needs.

Furthermore, the decline in Malaysia's shipments to the US may be attributed to the country's recent COVID-19 outbreak, which has disrupted its manufacturing operations. Malaysia has been grappling with rising infections, leading to factory closures and labor shortages.

Overall, these developments highlight the increasingly complex and dynamic nature of the global semiconductor industry. As countries continue to jostle for market share and adapt to the ongoing disruptions caused by the pandemic, it is likely that we will see further shifts in chip production and trade patterns.

chip supply chain

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