It's good to hear that there is an expectation for healthy growth in the semiconductor industry in the coming year. Let's hope that growth extends into the electronics industey as a whole.
I am really impressed with this statement " indicates that 36 percent of the world's semiconductor fabs are in high-risk areas in the Ring of Fire." That can be used as an argument to those who believes that western companies care only for the labor costs, and that's why they choose these regions to move their factories. For me, it is out of sense the situation.
Yes, your suggestion works well for companies with fabs in both high- and low-risk regions. A good portion of the capacity in the low-risk region is in older fabs which typically have less capacity; many of the world's "mega-fabs" are located in high-risk and medium-risk areas (Taiwan, Korea). Another solution is to build supply relationships with other companies in lower-risk areas, which companies such as Renesas have already done.
Most major companies have disaster receovery plans in place for this and balance the risk vs reward of locating manufacturing plans in these locations.
But as per my knowledge FABs require a lot of water and that may be a problem unless the fabs are located near sea shore ( I don't know whether Sea-water can be used directly by Fabs.
@prabhakar_deosthali, there are so many rivers that flow here in south India, I think water shouldn't be a problem. I am curious to know what other factors are considered before choosing fab-site ?
I agree that India could be a good option. But as per my knowledge FABs require a lot of water and that may be a problem unless the fabs are located near sea shore ( I don't know whether Sea-water can be used directly by Fabs.
This also reminds me about the disastrous fire a couple of decades back that completely burned India's only semiconductor manufacuring facility at that time - The semiconductor complex.
I feel even India is a very good alternative. Deccan Plateau which is south to the India is considered as less earthquake prone. Moreover india has many skilled manpower which can make this setup easy.
From the graph in your article, there appears to be a large number of Fabs in the low risk region (the highest of any of the single regions) however, there is no commensurate 'capacity'. I was wondering if the increase in capacity in the existing Fabs of the low risk region might give a breath of relief in this market?
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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