Barbara, I think companies have to diversify their investment policies. As of now almost all countries are blessed by nature in different ways like better availability of raw material, skilled manpower, better manufacturing environment, resources availability etc. At the same time it can effect negatively by natural calamities, terrorism, instable government, political issues etc. By considering all these positive and negative aspects, companies has to diversify their presents in different countries, rather than narrowing to a particular location. I mean global presence by Globalization.
As the world is now discovering with China, concentrating an industry in one place is a dangerous practice. This is as much an economic problem as a geographic one.
@Barbara: It is one of the biggest concerns in manufacturing industry today. With concentration of manufacturing in a few countries we are prone to be hit badly in case of disasters. Similarly, if the industry spreads to new geographical regions it will create employment and will offer consumers substitutes. This will also reduce the monopoly of certain countries in terms of production and will also effect the price setting mechanism.
The only problem that I see here in diversifying is the technological infrastructure in the host country.
I agree, Japan needs to diversify into other opportunities like OLED's as mentioned by Barbara. They have the skillset and the technology to manufacture electronic equipment at competitive prices and with high quality. They need to prioritize their manufacturing, focus on a market segment and then invest in it to become large scale producers.
What you narrated is very much true. However, this extends beyond chips and electronics industry. This is also true for auto industry and many other. Also, they are becoming very price competative.
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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