WTW-2023年半导体供应链风险报告（英）

2023SemiconductorsSupply

ChainRisk

ReportWTW

GlobalSupplyChainSurveyTABLE

OF

CONTENTSIntroduction

and

keyfindingsMarket

overview0304071018Risk

landscapeRisk

management

and

resilienceSurvey

sample

and

methodologyAbout

the

surveyWho:100seniordecisionmakers,includingriskmanagers,supplychainandlogisticsmanagersandCEOs.Where:CountriesacrossEurope,NorthAmerica,Asia-PacificandLatinAmerica.Size:Allcompaniessurveyedhadannualrevenueover

$250million.Findfulldetailsof

oursampleandmethodologyonpage18.Thesurveycontainedallclosedquestionswithdifferentresponseoptionsrangingfromrankingquestionsandmulti-selecttosinglecodedquestions.Inthisreport,wehave

includedsomeof

thefindingsfromthesurvey.

For

thefullresults,includingbreakdownsbyregionandjobrole,pleasecontactususingthedetailsonpage19.2/WTWGlobalSemiconductorsSupplyChainRiskReportIntroductionFive

key

findingsDespitethesupplychaindisruptionofrecentyearsandcurrentpoliticalandeconomic

uncertainty,

the

semiconductorsectorisdoingfairlywelloverallin2023.Thisislargelyduetotheever-growingdemandforspecializedchipsusedinemergingtechnologiessuchasartificialintelligence(AI),autonomousandelectricvehicles,theinternetof

thingsand5G.6143%of

businessessaidlossesrelatedtothesupplychainhadbeenhigherormuchhigherthanexpectedoverthelasttwoyears.namedshortageof

rawmaterialsamongthebiggestsupplychainfactorsexpectedtoimpacttheirbusinessesover

thenexttwoyears,toppingthelistof

concerns.%79%saidtheyhave

madeatleastsomeimprovementsintheirapproachtosupplychainmanagementinresponsetothepandemic.Buttherearequestionsover

theindustry’scapacitytomeetthisdemand.Thesupplychaincrisishighlightedthecomplexityandvulnerabilityof

theindustry’sglobalizedsupplychains,withmanypotentialchokepointswhichcanholdupproduction—andleadtosuddenshortagesof

chips.Inour2022GlobalSemiconductorSurvey,

supplychaindisruptionemergedamongthegreatestriskstobusinesssuccessandbiggestobstaclestoachievingstrategicobjectives.81%saidalackof

data,knowledgeandunderstandingwereamongthefactorsposingthegreatestchallengetoaddressingrisksover

thenextthreetofiveyears.How

are

semiconductor

businesses

adapting?76%agreedorstronglyagreedthatalackofalternativesuppliersimpededtheirabilitytoimplementaneffectivedualormulti-sourcestrategy.To

findouthowtheindustryisnavigatingthischanginglandscape,wesurveyed100riskandsupplychainleadersacrossthesector,

includingfabs,fablessdesignandintellectualproperty(IP),integrateddevicemanufacturersandspecializedsemiconductorcompaniesservingsectorsfromautomotivetorenewableenergy.Howdotheyseethesupplychainlandscape?Howaretheybuildingresilience?Whatarethemainchallengesandriskstheyface?Andwhatwillthesupplychainsofthefuturelooklike?WTWGlobalSemiconductorsSupplyChainRiskReport/3MarketoverviewUnderstanding

vulnerabilitiesinthe

microchipsupply

chainFrom

itsbeginningsinthe1960s,thesemiconductorindustryhasbeeninaracetomakesmaller,

faster,

andcheapermicrochipstopowerrapidadvancesintechnologyandelectronics.Collaborating

to

reduce

risks

and

lossesWhenaskedaboutthegreatestopportunitiestoimprovesupplychainmanagement,improvedstrategicplanningwithintheirorganization(56%)andincreasedcollaborationwithcustomers(56%)cametopof

thelist,followedbyincreasedcollaborationwithsuppliers(51%).Thishasdrivendeepspecializationof

functionsfromdesigntomanufacturing,waferproductiontotestingandassembly,toensurethelowestcostofproductionperchip.Eachlinkintheglobalsupplychainiscontrolledbyadifferententity,

ofteninadifferentgeography.Thisinterestincollaborationisunderstandablegiventhecomplexityandtrulyglobalnatureof

thesemiconductorindustry,andtheneedfortheplayersintheglobalsupplychaintoworkeffectivelytogethertoensurearesilientprocessfromrawmaterialstothefinishedchip.Thescarcityof

alternativesuppliersisalsoafactor.Morethanthree-quarters(76%)saidalackof

suitablealternativesuppliersrestrictedtheirabilitytoimplementaneffectivemulti-sourcestrategy.Whilethishasbroughtgreatefficiencyandprogress,italsoaddspotentialbottlenecksinthesystemascompaniesareoftenreliantonsinglesuppliersforkey

components.The

global

market

for

semiconductorsAneventimpactingevenasmallpartof

thesupplychaincanquicklyhaverippleeffects,aswe

sawduringthepandemicwhenshortagesof

criticalrawmaterialsandlogisticsdisruptionimpactedproduction.Chipsweresuddenlyunavailableforthemanufactureof

abroadrangeof

products.$580bnTotal

marketsizeof

thesemiconductorindustryin202211.3tBecausesemiconductorsarecriticaltosomanyindustriesandproducts,supplychaininterruptioncanhaveahugeimpact,fromlossof

marketshareandrevenuetoreputationaldamage,breachof

contractanddamagetostockprice.Estimatednumberof

semiconductordevicespurchasedin202225,000

–

7,000Learning

the

lessons

of

disruptionThesefactorsmayhelptoexplainwhynearlytwo-thirds(61%)of

respondentsinoursurveysaidtheirlossesrelatedtosupplychainriskwerehigherormuchhigherthanexpectedoverthelasttwoyears–thoughtheirbusinessmaynothave

sufferedafinanciallossoverallduetoacceleratedinnovationandhighdemandduringthelatterpartof

thepandemic.Averagenumberof

semiconductorsinanelectricvehicle3However,

experiencesandlearningsfromthecrisishavemotivatedsemiconductorbusinessestoreviewandincreaseresilienceagainstfutureshocks.Thevastmajority(79%)inoursurveysaidtheyhadmadeatleastsomeimprovementsintheirapproachtosupplychainmanagement,with20%sayingtheyhadcompletelytransformedtheirapproach.1/statistics/266973/global-semiconductor-sales-since-1988/2/newscontent/101720424/ic-insights-expects-global-semiconductor-sales-to-grow-by-another-11-this-year/en/media/insights/detail/white-paper-strategic-semiconductor-management/34/WTWGlobalSemiconductorsSupplyChainRiskReportFigure1:Supply

chain

risk-related

losses

in

the

last

two

yearsFigure3:Greatest

opportunities

in

terms

of

enhancingsupply

chain

management0%10%20%30%40%50%0%Improvedstrategicplanningwithinyourorganization56%10%20%30%40%50%60%Top

2box

(Net):Semiconductormanufacturingcompanies:61%13%Increasedcollaborationbetweenyouandyourcustomers48%56%35%Increasedcollaborationbetweenyouandyoursuppliers3%1%51%MoresophisticatedmodellingMuchhigherthanexpectedHigherthanexpected40%Hybridandothernewwaysof

working35%AboutwhatexpectedLowerthanexpectedMuchlowerthanexpectedAvailabilityof

moreandhigherqualitydata35%Digitaltransformation27%Q:

Whichof

thefollowingbestdescribestheextentof

yourbusiness’ssupplychainrisk-relatedlossesinthelasttwoyears?Q:

Whichof

thefollowingofferthegreatestopportunitiesintermsof

enhancingyoursupplychainmanagement?Ranktop3Figure2:Impact

of

COVID-19

on

approach

to

supplychain

management1%We

havecompletelytransformedourapproachfollowingthepandemic.20%20%We

madesomeimprovementstoourapproachfollowingthepandemic.Itdidnotchangebecausewehadotherpriorities.59%Itdidnotchangebecausewealreadyhadarobustapproachinplace.Q:

Whichof

thefollowingbestdescribeswhatimpact,if

any,

COVID-19hadonyourorganization’sapproachtosupplychainmanagement?WTWGlobalSemiconductorsSupplyChainRiskReport/5Links

in

the

chain:

a

typical

semiconductorsupply

networkExpert

view:

Rebalancing

supply

chains

tomitigate

further

shocks•

Upstream:

specializedrawmaterialsandcomponents,includingchemicalsuppliers,researchanddesignof

integratedcircuits,innovationandprototypetesting,andsemiconductorcapitalequipment.“Thesemiconductorsector’simportancetotheworldcameintosharpfocusduringthepandemicwhenashortageof

chipsmeantthewaitingtimeforanewcarincreasedtoover

ayearinmanycountries.•

Mid-stream:

foundries,wafermanufacturingandspecialistmanufacturersformicroprocessors,memory,

analogueandotherintegrateddevices.Electronicdesign,automationsoftware,chemicalsuppliers,andotherintermediariessuchasThespotlightontheindustry’sabilitytodeliveraresilientandstablesupplyof

chipswillonlyintensifyinthecomingyearsasdemandcontinuestogrowforincreasinglysophisticatedemergingtechnologiesandelectronics.distributors,contractwarehousingandtesting.•

Downstream:

outsourcedassemblyandintegratedcircuitcompanies,providingpackaging,assembly,andtestingservicestomanufacturedintegratedcircuitandwafersforfinalproductapplication.Packagers,labellers,wholesalers,transportationcompanies,Manycountriesarelookingtoclassifythesectorascriticalnationalinfrastructure.Companiesandgovernmentsaretryingtorebalancesupplychainstoavoidfurthershocksandmaintainsuppliesofsemiconductorstotheindustriesthatdependonthem.There’sapushtonear-shoreoronshoreactivitieskey

tothesupplyof

chipsandtobuildadditionalcapacitytoensuremultiplesources.freightforwarders,shipping,rail,andtruckingcompanies.Electronicsassemblyandsales.However,

addingtothecapacityof

thesemiconductorindustryisbothtimeconsumingandcostly.

Akey

bottleneckintheindustryisfabrication(orfoundry)capacity.Whilenewfabsarebeingplanned,theinvestmentsneededaremassiveandthetimerequiredtocompletetheconstructioncanexceedfiveyears.Globaleconomicuncertaintyismakingtheseexpansionsconsiderablymorerisky.Otherconstraintsthatwillimpacttheabilitiesof

theindustrytomeetgrowingdemandincludeincreasedcomplexityinproductfunctionality,whichrequiresconsistentlyhighlevelsof

investmentandforwardthinking,aswellasshortagesof

rawmaterials,talent,energy,

andwater.Onthepositiveside,mostcompaniesseemtohavewell-establishedandeffectivebusinesscontinuityteamsorareintheprocessof

updatingtheirarrangements.Interviewswe

carriedoutfortheWTW/Lloyd’sreport

‘LooseConnections:Rethinking4SemiconductorSupplyChains’showedagrowingmaturityinmanagingriskandresilienceandawillingnesstoexploredatasharing.Businessesaregettingbetteratmonitoringevents,responsecapability,collaboration,andeffectivebusinesscontinuityplanning.Theyarealsoinvestinginresourceplanningsoftware,businesscontinuityplanninganddatagathering,andhavingdeeperconversationswiththeirsuppliers.”Fredrik

MotzfeldtWTW

TMT

Regional

Industry

Leader,

Great

Britain4/news-and-insights/futureset/futureset-insights/rethinking-semiconductor-supply-chains6/WTWGlobalSemiconductorsSupplyChainRiskReportRisklandscapeIncreasingcomplexity

widensthe

riskhorizonOursurveysuggestssemiconductorClimate

and

environment:

morethanhalf

ofbusinessesare

worriedaboutarangeof

supplychainrisks,reflectingthecomplexityof

theproductionprocessandconcernsabouttheavailabilityofkey

componentsandraw

materials.Widerexternalfactorssuchaspoliticalinstability,climatechange,cyberriskandeconomicuncertaintyare

alsotopconcerns.respondents(53%)namedclimatechangeandenvironmentalfactorsamongtheglobaltrendshavingthegreatestinfluenceonsupplychainrisks,while31%placedenvironmentalchangeamongthefactorsunderlyingsupplychainrisks.Thedependencyonsuppliersclusteredinareasatriskfromextremeweathereventsmaybeafactorhere.Recenteventssuchasthe2021droughtinTaiwan,

whichaffectedsuppliesof

ultra-purewaterneededtocleansiliconwafers,reinforcedtheseconcerns.Almostthree-quarters(73%)citednaturalresourcessuchaswaterandrawmaterialsamongtheenvironmentalfactorsposingthegreatestrisktotheirbusiness.Increased

product

complexity:

increasedproductcomplexitywasthebiggestfactorunderlyingsupplychainrisks,namedby31%asatopconcern.Soaringfabcostsandthedemandforanever-increasingfunctionalityhavemadeproductdevelopmentanimportantdifferentiatorforthesemiconductorindustry.Companiesthatdesignthemostfunctionalityandperformanceintotheirproductsthequickest,arethemostlikelytoseeadistinctcompetitiveadvantage,requiringaconstantfocusonresearchandEconomic

risks:

economicuncertaintyemergedasthethirdleadingfactorunderlyingsupplychainrisks,rankedby30%asbeingamongtheirtopconcerns.Thismayreflectrapidlyrisingrawmaterialandenergy,

aswellaslaborandotheroperatingcosts.Whilethedemandforsemiconductorsremainsrelativelyhealthy,

therearefearsthatarecessioncouldhitnotjustdemandforconsumerelectronicsbutalsocorporatetechnologybudgets.Suppliersolvencyandliquidityissueswaslistedasaconcernby

29%.development(R&D).WTWGlobalSemiconductorsSupplyChainRiskReport/7Critical

shortages

and

disruption:

continuingshortagesof

rawmaterials(43%)toppedthelistof

supplychainfactorsexpectedtohave

greatestimpactonbusinessinnexttwoyears,followedbyenergyandotherserviceinterruptions(40%).Just-in-timeoperatingmodelsandshortagesof

componentsandtalentallscored34%.Logisticsandwarehousingshortagesalsofeaturedprominentlyat33%.Thesefindingssuggestthatworriesaboutavailabilityof

criticalsuppliesarelikelytohangover

theindustryforsometimetocome.proportionof

semiconductorfabricationislocated,aswellastheconflictbetweenRussiaandUkraine.Ukraineproducedupto70%of

theworld’sneongas,whichisessentialtomanufacturingmanysemiconductors,beforetheconflict.

Theseproblemsareleadingto5pressurefromWesterngovernmentstoonshoreornear-shorepreviouslyoff-shoredactivities.Giventheever-increasingstrategicnatureof

thesector,

semiconductorbusinesseswillneedtoadoptamorereal-timereviewoftheirsourcingstrategiestomakesuretheycanwithstandanyfuturetradeormilitaryconflict.Cyber

risks:

whenaskedaboutthepotentialimpactofrisksonthesupplychain,38%

namedcyberasahighimpactriskand51%asmedium.Growingdigitalizationandautomationof

productionprocessesandsystemsincreasestherisksof

cyber-attacksonsemiconductorcompanies,aswellastheirsuppliers.Failingtomanagecyberriskseffectivelycanleadtolossof

intellectualpropertyandhave

knock-onbusinessimpacts,includingdelaysindesigning,manufacturing,orderinganddeliveryof

finishedmicrochips.ESG:

alargemajority(78%)indicatedthatsustainabilitywasakey

goalintheirfirms’supplychain,while73%saidESGisaspecificselectioncriterionwhenselectingnewsupplychainvendors.Asinotherindustries,semiconductorfirmsarecomingunderincreasingpressurefromregulatorsandcustomerstodecarbonisetheirsupplychainsandsourcerawmaterials,includingrareandpreciousminerals,responsibly.Pandemics:

thoughwe

maybepasttheacutedisruptiveimpactsof

COVID-19,

theriskof

anewstrainof

thevirus,oranewunforeseenpandemic,seemstobestillfrontofmind,toppingthelistof

globaltrendswiththegreatestinfluenceonsupplychainrisksat68%.Geopolitical

risk:

64%

describedtheimpactofgeopoliticalrisksonthesupplychainasmediumandafurther20%ashigh.Thisresultmayindicateconcernsover

tensionsbetweenChinaandTaiwan,

wherealargeFigure4:

Factors

playing

greatest

role

in

supply

chain

risks0%10%20%30%40%0%10%20%30%40%IncreasedproductcomplexityComponentshortages31%31%22%EnvironmentalchangeFailuretomeetregulatoryrequirements22%EconomicuncertaintyNaturaldisasters30%29%29%26%22%SuppliersolvencyandliquidityissuesDatasecurityissues21%InflationandrisingcostsLackof

accesstocapitalMaterialsshortages19%Lackof

chainvisibility17%Increasedregulation16%Supplierdifficultiesinattractingandretainingtalent25%Issueswithshippingand/or

othertransportGeopoliticalissues14%24%Suppliercapacityconstraints22%Q:

Whichof

thefollowingunderlyingfactorsdoyoubelievetoplaythegreatestroleinyoursupplychainrisks?Ranktop45CentreforStrategicandInternationalStudies/blogs/perspectives-innovation/russias-invasion-ukraine-impacts-gas-markets-critical-chip-production8/WTWGlobalSemiconductorsSupplyChainRiskReportFigure5:

Supply

chain

factors

playing

greatest

impact

onbusiness

in

next

2

yearsFigure6:Potential

impact

of

the

following

risks

on

thesupply

chain0%10%20%30%40%50%0%10%20%30%40%50%60%70%RawmaterialshortagesEnvironmental43%40%50%EnergyorotherserviceinterruptionsShippingcontainershortagesJust-in-timeoperatingmodels10%Cyber40%38%35%51%11%34%34%34%Naturalcatastrophe29%ComponentoringredientshortagesShortageof

talent54%17%Geopoliticalrisk20%Logisticsandwarehousingshortages33%64%16%RegulationchangesPublicLiability32%18%Constructiondelays57%26%25%23%22%19%25%Shortageof

driversTransportissuesNaturaldisastersCybersecurityReputation14%69%17%Errorsandomissions12%23%65%HighMediumLowQ:

Whichof

thefollowingsupplychainfactorsdoyoubelievewillhavethegreatestimpactonyourbusinessinthenext2years?Q:

Howwouldyoudescribethepotentialimpactofthefollowingrisksonthesupplychainrisksfacedbyyourorganization?Ranktop4Figure7:

Global

trends

with

greatest

influence

on

supplychain

risks0%10%20%30%40%50%60%68%70%0%10%20%30%40%50%60%70%Pandemicsandotherhealth-relatedfactorsGeopoliticalfactors38%ClimatechangeandenvironmentalfactorsInflation53%53%25%21%Onshoringandnear-shoringAvailabilityandcostof

energyESG42%Q:

Whichof

thefollowingglobaltrendsdoyoubelievehavethegreatestinfluenceonyourorganization’ssupplychainrisk?Ranktop3WTWGlobalSemiconductorsSupplyChainRiskReport/9RiskmanagementandresilienceFirmsneed

betterdataandvisibilitytoaddressrisksAswe’ve

discussed,thesupplychainforsemiconductorsisglobal,complex,andhighlyspecialized.Manycompaniesacrosstheglobecontributetothedesigns,equipmentandmaterialsneededtomanufactureasinglemicrochip.Typically,

achipwillhave

movedbackandforthacrosstheworldatleasttwicebeforeitgoesintoaproduct.Thosemovements,andthecomplexinterdependenciesbehindthem,bothincreasesupplychainriskandmakeithardertomanage.Whilesemiconductorbusinessestypicallyhavecloserelationshipswiththeirprimarysuppliers(tier1),thosetiesareweakerfurtherdownthechain.Withnosparecapacityavailableformanystepsinthechain,companiesareverydependentontheresilienceof

firsttiersuppliersandtheirabilitytomonitorandmanagethoseattier2andbeyond.Manycompaniesfindithardtogetclearvisibilityupanddownthesupplychain—letalonetomodelthepotentialfinancialimpactsandrippleeffectsif

anyonelowertiersupplierweretofail.Addressing

supply

chain

challengesOursurveysuggestssemiconductorcompaniesareawareof

thesechallengesandareactivelyworkingtomeetthem.Thereisaclearrecognitionthatbetterunderstandingof

suppliernetworksandbetterrelationshipswithcustomersandsuppliersareneeded.Whenaskedwhatwouldhave

thegreatestimpactonmanagingtheirrisks,56%saiddevelopingadetailedunderstandingof

oursuppliernetworks,46%improvingrelationshipswithsuppliersandcustomers,and43%developingadetailedunderstandingof

oursupplychain.10/WTWGlobalSemiconductorsSupplyChainRiskReportOvercoming

data

quality

issuesIntra-companycollaborationalsoemergedasathemeinourconversationswithsectorleadersfortheWTW/Lloyd’sreport‘LooseConnections:RethinkingSemiconductorSupplyChains’.

Oneexamplegivenbybusinesseswe

spoketowasasupplychainriskmanagementteamhostedwithinprocurementbutworkingcloselywithfinanceandsharingtheirfindingswitheachother.Improvingdataqualityanddatasharingwasalsothoughttohave

abigimpactonmanagingrisksat

43%.Butlackof

dataandknowledgetoaddressriskswasnamedasachallengeby81%of

companies.While89%saidtheyhadidentifiedsomeorallof

thedatatheyneedtohave,only11%hadrobustprocessestogatherit.Thisisaproblemasif

youcan’tmeasure,youcan’tmanage.Asdiscussedabove,closerworkinganddatasharingwithsuppliersisvitaltoimprovevisibilityandriskassessment.Newsupplychainmonitoringtechnologycouldalsoprovideananswer,

offeringrealtimedatathatcanenablepreventativeactionandfasterreactiveresponsestoreducetheimpactsof

losses.Lack

of

insurance

is

an

obstacleThevastmajorityof

ourrespondents(81%)saidalackof

effectiveinsurancesolutionswasamongthegreatestchallengestoaddressingtheirsupplychainrisks.Thisisnotentirelysurprisingasthecontingentexposuresinthesemiconductorsupplychainfaroutstriptheinsurancecapacityavailableintoday’sinsurancemarket.Working

to

improve

resilienceLessthan1in5(19%)saidtheyfocusedtheirinvestmentinsupplychainmanagementoninsuranceandrisktransfer,while36%saidlosscontrolandsecurity,confirmingtheindustry’sattentiontolosspreventionandbusinesscontinuityplanning.Consideringtheimpactof

investmentstoimprovetheresilienceof

supplychainssofar,

twothirds(66%)saytheyhave

somewhatimprovedtherobustnessof

theirsupplychain,while27%saidrobustnesshadgreatlyimprovedasaresult.Only18%

feelconfidenttheyhave

sufficientinsurancetocovertheimpactof

extremeweatherontheirsupplychain.Thisisconcerninggiventheclusteringofsuppliersinareasof

highclimate-relatedrisk.Thevastmajorityof

respondents(92%)saidtheyhaveaformalprocessforbusinesscontinuityplanninginrelationtosupplychainrisks,with43%sayingtheyhaveaformalboard-levelprocesslinkedtokey

businessperformanceindicators(KPIs).WTWGlobalSemiconductorsSupplyChainRiskReport/11Mapping

and

visualizing

the

supply

chainFigure9:Greatest

challenge

to

addressing

risks

over

nextUsingtoolsthatmapthesupplychaincanhelpbusinessesstarttounderstandwheretheircriticalvulnerabilitieslieandassesstheirexposuresfromsuppliersintier2andbelow.

Atotalof

48%saidusingsupplychainmappingsoftwarewasamongthemeasuresthatwouldhave

thegreatestimpactinmanagingtheirsupplychainrisks.3-5

years0%20%40%60%80%100%81%81%56%46%35%1%Diagnostictools,suchasWTW’sSupplyChainRiskDiagnostic,canenablecompaniestomapthelocationof

allthelinksandassetsinthesupplychainandbetterassesshowtheyconnectandinteractwitheachother.Thistransparencycangiveorganizationsapanoramicoverviewof

dependenciesandriskfactorstoenablebetterdecisionmaking.For

example,if

mappingidentifiesaconcentrationof

criticalsuppliersnexttoacyclonehotspot,thiscanpromptdecisionsonwhethertorelocateproductionoradjustinsurancecover.Lackof

accesstoinsuranceandrisktransfersolutionsLackof

data,knowledgeandunderstandingof

theserisksLackof

internalriskmanagementtoolsandinsightLackof

budgetLackof

boardbuy-inOtherQ:

Whichof

thefollowingwillposethegreatestchallengetoaddressingyourrisksoverthenext3to5years?Ranktop3Figure8:Measures

with

greatest

impact

on

managingsupply

chain

risksFigure10:Impact

of

previous

investment

to

improverobustness

in

supply

chain0%10%20%30%40%50%60%Developingdetailedunderstandingof

oursuppliernetworksGreatlyimprovedtherobustnessof

our56%7%supplychainUsingsupplychainmappingsoftware27%Somewhatimprovedtherobustnessof

oursupplychain48%Improvingrelationshipswithsuppliersandcustomers46%Nochangetorobustnessof

oursupplychainDevelopingdetailedunderstandingof

oursupplychain43%Improvingdataqualityanddatasharing66%43%Bringingpreviouslyoutsourcedactivitiesin-house35%Q:

Howwouldyoudescribetheimpactof

anypreviousinvestmentyouhavemadeinimprovingtherobustnessof

yoursupplychain?Increasedoffshoring30%Consolidatingoursupplierbase26%Diversifyingoursupplierbase26%Figure11:Insurance

for

impact

of

extreme

weather

eventsOutsourcingpreviouslyin-houseactivitiesAdverseweather23%7%somewhereinoursupplychaincouldhaveaserious18%Increasedonshoring23%financialimpactonourbusinessandwehavenoinsuranceforthisOther1%We

havesomecoverforextremeweathereventssomewhereinoursupplychain,butnotsureif

itissufficientQ:

Whichof

thefollowingmeasuresdo,

orwouldhave,thegreatestimpactonmanagingyoursupplychainrisks?Ranktop475%We

havecoverthatensuresextremeweathersomewhereinoursupplychainwouldnothaveaseriousimpactonourbusiness/financialresultsQ:

Whatbestdescribesyourinsurancefortheimpactofextremeweathereventssomewhereinyoursupplychain?12/WTWGlobalSemiconductorsSupplyChainRiskReportExpert

view:

the

sector

needs

moreinnovative

risk

transfer

solutions“As

wellasreviewinghowtomakesupplychainsmorerobustandresilient,semiconductorcompaniesneedtoreviewhowtheymanagetheirrisksinthefuture,inaworldwhereinsurersarereluctanttoinsurecomplexsupplychains.Propertyinsurersinpartic