Mutual Dependencies in the Global Semiconductor Value Chain

Semiconductors have become the epicenter of international trade disputes and geopolitical rivalries. Using trade data, this Policy Report shows that while Taiwan, China, and South Korea have led final chip exports since the early 2010s, export leadership varies across 75 different chip types. Moreover, trade in semiconductor-related goods, i.e. material inputs and equipment, is dominated by nine core countries, including Germany, Japan, the U.S., and the Netherlands, leading to substantial mutual trade dependencies in the global supply chain. These complexities call for nuanced policy approaches that go beyond restrictive trade measures.