According to the latest report released by Boston Consulting Group (BCG), if global semiconductor suppliers establish a fully self-sufficient local supply chain, the overall price of semiconductors will rise by 35% to 65% and drive the price of electronic products and equipment to rise.

According to its estimates, assuming that major semiconductor players in the United States, Europe, China, Japan, South Korea and other countries all establish fully self-sufficient local supply chains to meet their own needs, at least an additional $1 trillion will be spent on research and development, Capital expenditures and other initial investment, in addition, there will be additional operating costs of 45 billion to 125 billion U.S. dollars per year.

The report pointed out that the global semiconductor supply chain enables the industry to continue to innovate in technology, create huge economic value, and benefit consumers. Therefore, policy makers need to consider targeted policy measures, including decentralizing semiconductor manufacturing bases, in order to strengthen the resilience of the global semiconductor supply chain to cope with technological innovation in the next decade.