The Great Supply Chain Scramble
This geopolitical mess has also lit a fire under a trend that was already simmering, supply chain diversification. For years, companies happily put all their eggs in one or two baskets because it was efficient. Now, they are scrambling like mad to find new baskets, preferably ones located in politically stable, friendly postcodes.
This scramble creates a new sort of demand. It’s not just about buying more chips, it’s about buying them from a wider range of suppliers in different countries. This could benefit smaller foundries and equipment makers who were previously overlooked. As governments from Washington to Brussels pour billions into building up domestic chip production, the companies that supply the tools and materials for these new factories could be set for a good run. It’s a structural shift, not a temporary blip. The era of a single, happy, globalised supply chain is, I think, well and truly over.
Of course, this isn't a risk-free punt. The semiconductor industry is notoriously cyclical, and adding unpredictable politicians into the mix only increases the volatility. A single tweet or a new regulation could change the landscape overnight. But the core idea remains compelling. The focus has shifted from pure technological competition to a more complex game of geopolitical positioning. For those willing to look past the headlines, a basket of companies that thrive on this new reality, what you might call Semiconductors Beyond The Sanctions, presents a fascinating theme. It’s not about betting on a single winner, but on the enduring nature of the fragmentation itself.
