Supply chains shift to localized short chains

Supply chains shift to localized short chains

The US-China trade war has reshaped the global supply chain, replacing long chains with shorter, localized ones. Subscribers can now save their log-in information to avoid the repetitive task of entering their User ID and Password each time they visit a website. By checking the 'Save my User ID and Password' box, the password will be saved on the computer being used to access the site.

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Frequently Asked Questions (FAQ)

FAQ 1: What has caused the global supply chain to restructure?

Answer: The US-China trade war and its geopolitical repercussions have prompted the restructuring of the global supply chain, moving away from extensive long chains towards more localized short chains.

FAQ 2: What are localized short chains?

Answer: Localized short chains refer to supply chain models that emphasize proximity and regionalization, where the production and supply activities are geographically closer to the end markets. This model reduces the dependency on long-distance transportation and aims to make supply chains more resilient and responsive.

FAQ 3: Are there recent examples of industries affected by the supply chain shift?

Answer: Specific examples aren't mentioned in the search results provided, but the ICT and semiconductor industries are often highlighted in discussions about supply chain localization, especially given the impact of the US-China trade war and the global chip shortage.

FAQ 4: Has the COVID-19 pandemic had any impact on the shift to localized short chains?

Answer: Yes, disruptions to the semiconductor supply chain during the COVID-19 pandemic, including shifting industrial and consumer demands and production declines, have helped accelerate the shift to more localized and shorter supply chains.

FAQ 5: What is the CHIPS Act of 2022, and how does it relate to supply chains?

Answer: While the provided search result does not detail the CHIPS Act directly, it is a piece of US legislation intended to bolster the domestic semiconductor industry through subsidies and support, thereby reducing dependence on foreign supply chains and reinforcing localized supply networks.

FAQ 6: Why might companies downsize their capacity in China?

Answer: As per the search results, companies might be downsizing their capacity in China as part of a broader strategy to diversify manufacturing locations and create shorter, more localized supply chains, potentially due to geopolitical tensions, trade issues, or to mitigate risks such as those posed by the pandemic.

FAQ 7: What is the long-term outlook for global value chains?

Answer: Although the provided search results don't give a precise outlook, the shift to localized short chains suggests a move away from globalized production based on cost-minimization towards regional production focused on agility, risk management, and resilience.

These FAQs offer a glimpse into the topic of supply chain localization as discussed by DIGITIMES, based on the information extracted from the search result summaries. For the most current and detailed information, readers should consider accessing full articles from the provided links or visit the DIGITIMES website directly.