Global Restructuring and Resilience in the Semiconductor Industry: A Value‑Chain Perspective

Abstract

The semiconductor industry stands at the intersection of high technology, global trade, geopolitical competition, and supply‑chain vulnerability. This paper presents a comprehensive conceptual synthesis of recent empirical evidence on the global production and trade patterns of the semiconductor value chain, and analyzes how evolving trade geographies, network dependencies, and policy interventions are reshaping the industry toward greater resilience. Drawing primarily on the network‑analysis study by Ou, Yang & Liu (2024) and the trade‑geography analysis by Ren et al. (2023), this work integrates findings with supply‑chain modeling (Schreiber, 2023) and sector‑resilience projections (Singh et al., 2024) to articulate a detailed narrative of structural change. The study highlights four central dynamics: (1) a persistent “eastward shift” and concentration of manufacturing and integrated‑circuit trade; (2) stark heterogeneity across supply‑chain segments, with upstream equipment trade remaining highly monopolized; (3) growing policy‑driven diversification and reshoring pressures—especially in wafer fabrication and downstream assembly/test/packaging; (4) emergent, but fragile, resilience through geographic diversification that nonetheless contends with systemic dependencies and potential trade‑policy disruptions. The paper concludes by discussing theoretical implications for global value chain (GVC) governance, the limits of diversification, and areas for future research, notably around upstream‑midstream risk, innovation diffusion, and the interplay between trade policy and supply‑chain structure.