Economics & Finance
Manufacturing-Assembly Geographic Decoupling
In global supply chains, semiconductor wafer fabrication and back-end assembly testing can be geographically separated across different countries due to differences in capital intensity, technological requirements, labor costs, and political risk. Manufacturing tends to concentrate in capital and technology-intensive locations, while assembly can disperse to cost-advantaged regions. However, overall efficiency gains are often offset by logistics and coordination costs.
Read the daily articles behind this idea on the Chinese edition.