Challenges in the semiconductor supply chain and chip supply uncertainty : A global perspective

The semiconductor industry lies at the core of modern technological advancement, yet it faces significant disruptions due to supply chain vulnerabilities. The demand for semiconductors has surged across various industries, such as electronics, automotive, medical, and consumer products. However, the supply of semiconductors has not been able to keep up with the demand, resulting in shortages and delays that have had far-reaching impacts. This research investigates the key challenges affecting the global semiconductor supply chain (SSC) and how these challenges contribute to chip supply uncertainty. Specifically, the study reveals the industry expert perception of the impact of three critical factors: geographical concentration, geopolitical tensions, and manufacturing complexity on global chip supply. A qualitative research design was adopted, involving in-depth interviews with three industry professionals from semiconductor companies operating in Malaysia. Thematic analysis was used to extract insights through a structured process of data reduction, data display, and conclusion drawing. The findings reveal that geographical concentration creates single points of failure, particularly when manufacturing operations or raw material sources are centralized in specific regions such as China or Taiwan. Geopolitical tensions, such as the US-China trade conflict and export restrictions on semiconductor technologies, further exacerbate supply uncertainties by imposing tariffs and disrupting cross-border logistics. Meanwhile, manufacturing complexity driven by stringent quality standards, technological miniaturization, and long production cycles contributes to delays and material rejection, particularly in customized chip production environments. The research contributes to existing literature by offering a focused understanding of supply chain disruptions within the semiconductor industry and provides strategic insights for policymakers and industry leaders aiming to enhance supply chain resilience in the face of future global uncertainties