Guest Author: Paul Dennies, Director, Industry Strategy Group, Oracle.
The semiconductor market has always been very cyclical, so after a relatively weak 2019, companies were projecting and hoping for good results for 2020. In the first half of 2020, there was increased usage of cellphones, tablets and computers during the lockdown, and now an increase in sales is occurring as economies have started to re-open. The Covid-19 shutdowns and trade embargoes and tariffs between the U.S. and China have made a lot of semiconductor companies start to re-think their supply chains, with many expecting a massive adjustment moving forward.
With the U.S. looking to limit U.S. technology equipment companies from doing business in China, you are seeing some seismic shifts in the semiconductor supply chain. Companies like TSMC and Samsung are increasing investments in the U.S. while decreasing investments in China. At the same time, China is starting to develop its own home-grown semiconductor supply chain with increased government investments. OSATs (outsourced semiconductor assembly and test providers) are also under similar pressure and are on the move, causing further disruptions to the industry.
The semiconductor industry has always been a globally distributed market. It is known for its ability to quickly integrate and adopt new technologies into the supply chain to meet shifting customer demands and requirements. Supply chain volatility and disruptions have also been par for the course for this industry. Successful semiconductor companies have strived to build systems to create and manage resilient supply chains. With a high level of supply chain volatility predicted for this market in the upcoming years, the ability to create resilient supply chains across new boundaries, locations and technologies has now become a driving factor for success in the future.
Let Oracle be your technology partner in your move to a more resilient supply chain. We have a comprehensive set of modern cloud solutions for the semiconductor industry that enable you to achieve your goals for a zero latency supply chain and integrated business planning and execution. To hear more about how Oracle has helped others in the semiconductor space, be sure to attend this IndustryWeek webinar Thursday at 9am PT.