1、CGD NOTE|NOVEMBER 2022Shock-Proofing the Semiconductor Supply Chain:The Role of Industrial and Other Policies Shahid YusufSome years back,the mathematician Clive Humby1 asserted that data was the“new oil”however,it would be more accurate to claim that semiconductorsa scarce resource unlike datadeser

2、ve to be compared with oil.In 2021,global revenues from semiconductors,which are on a rising trend,amounted to almost$560 billion,and these devices are critical to the operation of some 200downstream industries(Figure1).The importance of semiconductors to the functioning of so many activities was br

3、ought home when the Covid pandemic disrupted production and trade.1 C.Humby made this claim in 2006.https:/ Figure 1.Revenues from global semiconductor salesSource:Semiconductor Industry Association(2022).https:/www.semiconductors.org/global-semi-conductor-sales-increase-7-3-year-to-year-in-july-but

4、-growth-slows/SHOCK-PROOFING THE SEMICONDUCTOR SUPPLY CHAIN:2 THE ROLE OF INDUSTRIAL AND OTHER POLICIESThe shortage of semiconductors forced a cutback in the output of vehicles,consumer durables,and electronic equipment of all kinds inflicting heavy losses(of up to$500 billion worldwide)2 for exampl

5、e,on the auto industry.3 The semiconductor drought also contributed to inflation in 2021 as manufacturers struggled to satisfy rising demand for a wide range of products.The vulnerability of the globally dispersed semiconductor supply chain The severity of the shock inflicted by the Covid pandemic w

6、as a wake-up call because it demonstrated the diminished resilience of a critical supply chain.To pare costs,lead firms had cut down on the number of suppliers and opted for lean inventories.4 One consequence of this was that supplies of some inputs and equipment,and certain operations such as back-