9 assignments

I have 9 article. I attached the Article Instructions and 9 articles.
Need 400 words for each article
bb
ATTACHED FILE(S)
1|P a g e
P271ARInstructions(Summer2022)
P271(Sum‐22)SCMGlobalBusinessAnalysis
OverallArticleReview(AR)Instructions
Iamlookingifyouknowthearticle:Keeping‐upwithreading&concepts
Format:pdffileformat,Single‐Spacing,12‐font,1‐PageMax
• Typicaleffortis¾pagelengthwitha1‐pagemaximum
• 5‐Pointsavailableforeachreview
• Bulletformatisacceptablebutwatchnottooshort/general
1. ReadtheArticle
2. AnswertheQuestions.EveryArticleReview(AR)andDiscussionwillhavedistinctquestions.SeeeachCanvas
Assignmentforthequestions.Clearlyidentifyeachofthequestionsyouareanswering.Donotgroupthemalltogether
inasingleparagraph.
3. RatetheReading:Ratethecontent(1‐3)asitrelatestoclass.
• Ratetheassignedreading.
• (3=Enjoyed/Applicable)(2=Fair)(1=Didnotlike/follow)
• Commentsarealwayswelcome.Especiallyifyouliked/dislikedandwhy.
QuestionsmayrequireaquickGooglesearcharoundadefinition.Historicallythisisa30‐minutemaximumeffortfor
students.Readthearticleandgetyourthoughtsonapage.Eacharticlewillresonatedifferentlywitheachstudentdriving
sectioncontent.Showmetheeffortandthoughtprocess.
CutandPasteisNOTtolerated.Anyformofacademicmisconductwillbedealtwithseverely.Makesurethatyoudoyour
ownwork,citeanysources,andnevermisrepresentyourworktoyourcolleaguesorprofessor.Ifyouhaveanyquestions
aboutwhatmightconstituteacademicmisconduct,pleaserefertotheKelleySchoolofBusinessHonorCode:
http://www.kelley.iu.edu/ugrad/honorCode.cfm
Tobeconsideredforfull‐credit;assignmentsmustbesubmittedon‐timeorearly.Latearticlesareacceptedonarolling
scaleuntiltheCanvasAssignmentcloses.Thereisa1‐pointpenaltyforthefirst24‐hourslate.Thepenaltyislowerlateand
completethanon‐timeandunder‐developed.OnceanARisclosed,assignmentswillnotbeaccepted.Pleasedonotask
forlatitudeunlessyouhaveapersonalemergency.Ifyouhaveapersonalissueseemein‐persontodiscuss.
AnassignmentisconsideredlatebasedonthedatestampwithinCanvasAssignmentsasitrelatestoyourclassstarttime.I
donotgivelatitudeforsystem/networkissues.Mysuggestionistosubmitearly.Ifyousubmitearlyenough,Iwillgrade
earlyandgiveyouthechancetore‐submitforfull‐creditbeforethedue‐date.
Theexpectationisyoushouldgetfull‐creditonarticlereviews(AR).Youdonotneedclassmaterialtocompletethe
assignments.Manystudentspostseveralweeksin‐advance.

2|P a g e
P271ARInstructions(Summer2022)
AR01: The Triple-A SC
1. What are the issues with chasing efficiency?
2. List and define each of the three “A’s”
3. For each “A” give a current “world-class” example not from the article.

AR02: What is Strategy?
1. Define OE
2. Define Strategy
3. Define Fit
4. Give a current corporate example of OE, strategy and fit not from the article.It may be good or poor.

AR03: Industry 4.0
1. What makes Industry 4.0 unique?
2. Provide a world class example in your answer different than the article.

AR04: Service 4.0
1. What makes Service 4.0 unique?
2. Provide a world class example in your answer different than the article.

AR05: Cognitive Circular Ecosystems
1. Discuss how a SC can be a cognitive ecosystem and items included
2. Define resiliency and include important attributes for resiliency
3. Discuss the importance of circular ecosystems and how it is achieved

AR06: The Reinvention of Procurement
1. List examples of how Procurement’s role is critical to a firm’s success
2. Discuss examples of how Procurement supports Services
3. What are the new competencies for Procurement?

AR07: Getting Offshoring Right
1. Explain each of the steps the author identifies to outsourcing
2. Discuss a current example, not mentioned in the article, of outsourcing and how it relates to the article.

AR08: Chip Shortage (Team Exercise)
1) List reasons why there is a chip shortage
2) List generic actions you would take in order of importance.
3) One idea is to buy-ahead and stock pile so you would “never talk this part again”.What are the firm-level
and industry-level ramifications of that decision?

AR09: SC Synchronization
1. Describe what is meant by end-to-end.
2. List enablers to SC synchronization
3. How do you quantify a value stream?

AR10: Network Optimization (Team Exercise)
1. Within network decisions, who are the stakeholders and value propositions?
2. Is there a priority of decisions?
3. Evaluate making iPhones in the USA

Tapping into the
Transformative Power
of Service 4.0
The Boston Consulting Group (BCG) is a global
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– –




TELCO BANKING INSURANCE GOVERNMENT HEALTHCAREENERGY
Unnecessary use of expensive systems and resources (for example, unneeded system complexity)
SOURCES OF WASTE
OVERPROCESSING
OVERPRODUCTION
TRANSPORT
MOTION
INVENTORY
DEFECTS AND REWORK
WAITING
IMPROPER UTILIZATION
OF SKILLS
Excessive service and output levels, which have an insufficient link to customer value
Too many unnecessary physical activities and processes (for example, multiple data entries)
Manual work that can be automated or eliminated (for example, data lookups or validations)
Large stockpiles of physical goods (for example, telco devices) or a backlog of troubleshooting tickets
Quality problems that hinder downstream processes or necessitate rework
Inefficiencies that result from waiting for resources or slow processing
Use of overqualified employees for simple tasks or underqualified employees for complex tasks
ACROSS SERVICE INDUSTRIES, THE TYPICAL WASTE LEVEL IS 40% TO 50% OF THE ADDRESSABLE COST BASE
BCG anal sis

Service 4.0 Represents a Fundamental Transformation
FROM
OFFERING
DELIVERY
SERVICE 2.0 OR 3.0 TO SERVICE 4.0
Reactive Proactive
Integrated, bundledIndustry-specific, separated
Customized, human-centeredStandardized, modular
Data-drivenExperience-based
Implicit, virtual interfacesExplicit, manual interfaces
Seamless, omnichannelRemote service centers
Dynamic, real-time pathsPredefined paths
Shared, open infrastructuresHeterogeneous, separated systems
BCG anal sis
Nine Technologies Enable Service 4.0
Big ata annal ti s
bi uitous Conne ti itanthe nternet oThings
Develop deeper
insight into
customer
behavior,
preferences,
and pathways
BIG DATA AND ANALYTICS
Manage huge
data volume in
open systems and
provide services
on demand
CLOUD COMPUTING
Replace humans in
work processes
that are entirely
rule based
ROBOTIC PROCESS
AUTOMATION
Interact
naturally with
virtual agents,
digital devices,
and services
BIONIC COMPUTING COGNITIVE COMPUTING
Free services from
reliance on specific
soware and
hardware and
ensure flexibility,
adaptability, and
robustness
VIRTUALIZATION
Simulate human
thought processes
and provide
intelligent, virtual
assistance
Create an ongoing
connection in areas as
varied as on-the-spot
service provision and
remote monitoring
UBIQUITOUS CONNECTIVITY
AND THE INTERNET
OF THINGS Develop an ecosystem of apps
and cloud services
that utilize
high-performance
devices
SMART DEVICES
Provide the
necessary
information when
needed in areas as
varied as manuals,
pricing, and alerts
AUGMENTED REALITY
BCG anal sis
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Cogniti e Co puting
ug enteealit
Companies Can Benefit in a Wide Variety of Ways

an eel er i e
Marketing
campaigns
Real-time customer microsegmentation providing fast, tailored targeting
Data-driven advertising, customer experience analytics, and measurement5 ~30
End-to-end purchasing via digital channels, including selection, configuration,
and contracting
Machine learning to assess fraud and default risk and to predict account overruns
20 ~30
Big data and cloud-based field-force management and optimization
Remote product and service upgrades based on next-generation soware
and hardware
10 ~60
Virtual agents, real-time decision support, and proactive fault repair
Resolution of a full range of issues and requests via self-service channels15 ~65
Proactive identification or retention of customers with high propensity to churn
by applying big data analytics or cognitive computing to client interactions10 ~40
Virtual interfaces for simultaneous, cross-functional product development and
paperwork elimination
Predictive modeling to simulate demand and performance of new services
5 ~30
Lead
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Technology
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Virtual test environment enabling fast and inexpensive feedback loops10 ~40
IT
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Cloud-based outsourcing of support services to external service providers5 ~35
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How Will Service 4.0 Affect the Workforce and Competition?

GROSS JOB IMPACT IN GERMAN AND AUSTRIAN INDUSTRIES
CURRENT WORKFORCE
(MILLIONS)
JOBS AT RISK
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PERCENTAGE OF
CURRENT WORKFORCE
PERCENTAGE OF JOBS
AT RISK PER INDUSTRY
Percentage of total jobs at risk
COMPANY SIZE
~20.0 ~9.5 ~17.0 Total ~46.5
2.5–3.0 15–18 Total 4.5–6.0 10–13
Energy and utility
Financial services
ICT
Professional services
Outsourcing
Education
Health
Transport
Public administration
Commerce and leisure
Manufacturing and construction
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How to Evolve to Service 4.0





CRITICAL DIMENSIONS
AMBITION
GOVERNANCE
ORGANIZATION
PEOPLE
PARTNERING
IT SCOPE
IT DELIVERY
SEQUENCING
ROLLOUT
CULTURAL CHANGE
Radical, game-changing solutions
Functional view and steering
Disruptive (for example, squad)
Attract and hire new talent
Open system, try before buying
or building
Fewer features sooner
Continuous delivery, two-speed IT
Enabling processes first
All initiatives and organizational
units simultaneously
Change the context (for example,
goals, resources, and constraints)
that drives behaviors
Rapid incremental changes
End-to-end process view
Traditional (for example,
divisional or matrix)
Retrain current workforce
Closed system, few partners
Big-bang solutions, replacement
of legacy systems
Traditional waterfall, releases
Customer-facing processes first
One-by-one, quick wins first
Address feelings and values
HIGH-LEVEL SELECTIONS
Hypothetical promising path
BCG anal sis
Add Service 4.0 to the C-Suite Agenda

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Abu Dhabi
Amsterdam
Athens
Atlanta
Auckland
Bangkok
Barcelona
Beijing
Berlin
Bogotá
Boston
Brussels
Budapest
Buenos Aires
Calgary
Canberra
Casablanca
Chennai
Chicago
Cologne
Copenhagen
Dallas
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Frankfurt
Geneva
Hamburg
Helsinki
Ho Chi Minh City
Hong Kong
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Istanbul
Jakarta
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Kiev
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Lagos
Lima
Lisbon
London
Los Angeles
Luanda
Madrid
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Mexico City
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Monterrey
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Munich
Nagoya
New Delhi
New Jersey
New York
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Taipei
Tel Aviv
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Vienna
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Washington
Zurich
bcg.com
8/6/2021 Why the Chip Shortage Is So Hard to Overcome – WSJ
https://www.wsj.com/articles/why-the-chip-shortage-is-so-hard-to-overcome-11618844905?mod=searchresults_pos1&page=1 1/10
This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit
https://www.djreprints.com.
https://www.wsj.com/articles/why-the-chip-shortage-is-so-hard-to-overcome-11618844905
TECH
Why the Chip Shortage Is So Hard to Overcome
Semiconductor producers are trying to increase output, but the small gains are unlikely to �ix the
shortfalls hampering production of everything from cars to home appliances to PCs
Byin Seoul andin Hong Kong |
Photographs by Gabby Jones for The Wall Street Journal
April 19, 2021 11�08 am ET
Eun-Young Jeong Dan Strumpf
The world’s leading suppliers of semiconductors are pushing to overcome the prolonged
chip shortage that has hampered production of everything from home appliances to PCs
to autos.
Chip makers are trying to eke out more supply through changes to manufacturing
processes and by opening up spare capacity to rivals, auditing customer orders to prevent
hoarding and swapping over production lines. The bad news is, there are no quick fixes,
and shortages will likely continue into next year, according to the industry’s executives.
On top of a spike in demand, producers have been hamstrung by a series of freak events
that have knocked out supply, while ongoing U.S.-China political frictions and concerns of
a prolonged shortage have prompted some manufacturers to stockpile chips.
The current shortfall includes the less-advanced chips that the industry’s biggest players
have been pulling away from to pursue higher-margin, cutting-edge chips. Building new
production capacity usually takes years.
That could slow down the post-pandemic recovery for certain industries that use the
chips that are looking to take advantage of rising consumer spending. It also feeds into
inflation concerns as higher chip costs can stoke prices throughout the economy.
Racing to fill orders, GlobalFoundries Inc., based in Santa Clara, Calif., one of the world’s
largest contract chip manufacturers, is dispatching its engineers to find ways to squeeze
out even the smallest amount of extra production from its factories in the U.S., Singapore
and Germany. Among the solutions: delaying certain maintenance tasks and speeding up
—by a fraction—the rate at which wafers move along the line.
https://www.wsj.com/news/technology?mod=breadcrumb
8/6/2021 Why the Chip Shortage Is So Hard to Overcome – WSJ
https://www.wsj.com/articles/why-the-chip-shortage-is-so-hard-to-overcome-11618844905?mod=searchresults_pos1&page=1 2/10
“We’re working immensely hard to figure out how to do more, build more,” said chief
executive Thomas Caulfield.
Last Tuesday, President Biden called for a bipartisan push to strengthen the U.S.
semiconductor industry during a meeting with automotive and tech executives. He has
earmarked $50 billion to boost America’s semiconductor production as part of a $2.3
trillion infrastructure plan. The spending isn’t expected to push the needle far: making
the U.S. self-sufficient for its chips would require more than $1.4 trillion in investments
and government incentives over a decade, according to the Semiconductor Industry
Association, an industry group.
Chip makers can add only incremental boosts to capacity from existing plants, executives
say. Building a new fabrication plant can take years because of the scale and complexity of
equipment and space needed to make semiconductors.
Major chip makers made big strategic bets on the more-profitable advanced chips needed
for things such as 5G and servers. The approach hit a glitch when the coronavirus plunged
the global economy into one of its worst recessions, rattling supply chains and consumer
spending patterns. That left chip makers ill-equipped to deal with the high demand for
older, less-sophisticated semiconductors used widely in products such as cars, computer
monitors, speakers and appliances—products that have been hoovered up during the
pandemic.
The supply crunch was exacerbated by U.S.-China trade tensions, especially during the
past year, including Washington policies that gradually restricted the sale of American-
designed or -made chips to some Chinese buyers. Fears of sanctions prompted tech
A semiconductor wafer at GlobalFoundries’ Malta, N.Y., facility.
https://www.wsj.com/articles/biden-touts-infrastructure-proposal-in-chip-shortage-meeting-11618253271?mod=article_inline
https://www.wsj.com/articles/u-s-blacklists-chinas-top-chip-maker-escalating-tech-fight-11608274932?mod=article_inline
8/6/2021 Why the Chip Shortage Is So Hard to Overcome – WSJ
https://www.wsj.com/articles/why-the-chip-shortage-is-so-hard-to-overcome-11618844905?mod=searchresults_pos1&page=1 3/10
companies in China to stockpile chips and prepare for the worst, Huawei Technologies Co.
deputy chairman Eric Xu said last week. The Chinese company uses a range of chips in its
telecommunication products and consumer gadgets, and aggressively stockpiled
components to protect against U.S. export restrictions.
“Now [the Chinese companies] are stockpiling for one month, three months, or even six
months, and they have disrupted the whole system,” Mr. Xu said. China’s semiconductor
imports soared 15% last year and hit a record $35.9 billion in March, Chinese customs
figures show.
Chip production was disrupted by events including a plant fire in Japan and freezing
weather in the southern U.S. that shuttered production lines. A drought in Taiwan, a
major chip-making hub, threatens to further reduce the industry’s output, since large
amounts of water are used in the process.
GlobalFoundries, above and below, is dispatching its engineers to �ind ways to squeeze out even the
smallest amount of extra production.
https://www.wsj.com/articles/renesas-chip-plant-fire-spreads-concerns-about-global-auto-production-11616414181?mod=article_inline
https://www.wsj.com/articles/texas-winter-storm-strikes-chip-makers-compounding-supply-woes-11613588617?mod=article_inline
https://www.wsj.com/articles/the-chip-shortage-is-bad-taiwans-drought-threatens-to-make-it-worse-11618565400?mod=article_inline
8/6/2021 Why the Chip Shortage Is So Hard to Overcome – WSJ
https://www.wsj.com/articles/why-the-chip-shortage-is-so-hard-to-overcome-11618844905?mod=searchresults_pos1&page=1 4/10
Manufacturers of products that use chips are stepping up production in expectation of a
post-pandemic economic recovery. The surge in chip demand is pushing up prices and
extending already historically long wait times. Auto makers including Toyota Motor Corp.
and General Motors Co. have been forced to idle or reduce production at some plants.
Some buyers say they face delays of half a year or longer. “You ask on Monday, it’s a 12-
week lead time. Then you ask on Wednesday and it’s a 27-week lead time,” said Liam
Bates, chief executive officer of Kaiterra, a Swiss-based maker of air-quality tracking
devices.
Kaiterra, which manufactures in southern China, is beefing up contingency plans to make
its supply chain “future-proof.” Engineers who focus on building new products now
allocate a chunk of time to redesigning existing ones to operate on different chips, in case
the ones needed don’t arrive. Recently, the company decided to stock up a year’s worth of
inventory for some parts.
Semiconductors are the lifeblood of many industries—ranking as the world’s fourth-most
traded product counting imports and exports, after crude oil, refined oil and cars.
For years, the world’s biggest chip makers plowed investment into capacity to feed
demand for the next generation of semiconductors, and shifted their focus away from the
production of more-basic chips.
But autos and home electronics are packed with lots of the more rudimentary
components. These include power-management chips, a basic chip that regulates the flow
of electricity in a device, and microcontrollers, the workhorses that run a host of
functions.
https://www.wsj.com/articles/gm-to-halt-production-at-several-north-american-plants-due-to-chip-shortage-11617893417?mod=article_inline
8/6/2021 Why the Chip Shortage Is So Hard to Overcome – WSJ
https://www.wsj.com/articles/why-the-chip-shortage-is-so-hard-to-overcome-11618844905?mod=searchresults_pos1&page=1 5/10
“There isn’t an electronic device that doesn’t have a microcontroller in it,”
GlobalFoundries’ Mr. Caulfield said. “This is pervasively in short supply.”
Even advanced electronic gadgets need some basic chips to operate, and in fact
increasingly use more of them to run more sophisticated technology. A typical 5G
smartphone can hold as many as eight power-management chips, compared with two to
three in a 4G phone, according to Hui He, an analyst at research firm Omdia.
Last year, 27% of all spending on chip-making equipment went to tools for building the
industry’s most-advanced chips, according to research firm Gartner Inc., which are often
used in smartphones, high-end PCs and data centers. Less than half that portion, about
11%, went to equipment for cranking out more commoditized chips
Thomas Caul�ield, the CEO of GlobalFoundries, at the Malta, N.Y., facility on Friday.
https://www.wsj.com/market-data/quotes/IT
8/6/2021 Why the Chip Shortage Is So Hard to Overcome – WSJ
https://www.wsj.com/articles/why-the-chip-shortage-is-so-hard-to-overcome-11618844905?mod=searchresults_pos1&page=1 6/10
The world’s largest contract chip maker, Taiwan Semiconductor Manufacturing Co. , told
investors in January that it is working with customers to upgrade some of the chips they
are using so that they can be built on its more-advanced manufacturing lines, where there
is more capacity. On Thursday, executives told investors that customers have been
stockpiling higher levels of inventory due to the pandemic and geopolitical tensions.
Switching existing production lines from making one type of chip to another isn’t easy
because different types of chips require different equipment to make, though there can be
some overlap.
There hasn’t been a time when the shortage has affected so many types and brands of
chips all at once, said Marcus Chen, vice president of sales for the Asia-Pacific at Fusion
Worldwide, one of the many global distributors who act as middlemen to supply
electronic components to buyers.
It usually takes at least two years to build and equip a semiconductor fabrication plant,
known as a “fab,” which can cost billions of dollars. The most advanced machines that can
be installed in the plants can top $100 million and are so large they require as many as
three 747s to deliver.
Once fabs are built, a chip typically takes three months to make—or longer for the most-
advanced ones.
Semiconductor makers must decide whether to make multibillion-dollar bets on whether
this surge will last or taper off by the time new plants are up and running. Many are
reluctant to alter long-term spending plans based on demand surges that could be short-
lived.
Still, the biggest semiconductor companies are setting aside huge sums to boost overall
capacity. TSMC earlier this month unveiled the industry’s largest-ever investment,
allocating $100 billion over the next three years to boost capacity. Most of the company’s
near-term spending, however, will go toward building the most-advanced chips. In the
U.S., Intel Corp. last month pledged $20 billion for two sites in Arizona and signaled
further investment commitments are to come this year. South Korea’s Samsung
Electronics Co. has earmarked $116 billion in investment by 2030 to diversify chip
production.
https://www.wsj.com/market-data/quotes/TSM
https://www.wsj.com/articles/tsmc-sets-up-for-soaring-chip-demand-11618486965?mod=article_inline
https://www.wsj.com/articles/tsmc-to-invest-100-billion-to-increase-semiconductor-output-11617281721?mod=article_inline
https://www.wsj.com/market-data/quotes/INTC
https://www.wsj.com/articles/samsung-plans-long-term-investment-to-diversify-chip-strategy-11556113382?mod=article_inline
https://www.wsj.com/market-data/quotes/SSNHZ
8/6/2021 Why the Chip Shortage Is So Hard to Overcome – WSJ
https://www.wsj.com/articles/why-the-chip-shortage-is-so-hard-to-overcome-11618844905?mod=searchresults_pos1&page=1 7/10
In China, President Xi Jinping has for years made the country’s independence in advanced
technologies such as chips a national priority. Yet the goal remains elusive. One key player
in the country’s self-reliance push defaulted on billions of dollars in debt. Others have
been hobbled by U.S. export controls restricting access to advanced chip-making
technology.
China’s biggest chip maker, Semiconductor Manufacturing International Corp. , last
month committed $2.35 billion with a government partner to build a new factory focused
on older chip-making processes. The company anticipates the new facility to start
production next year. But delays in getting new chip-making equipment is an obstacle to
increasing output, the Shanghai-based company’s co-CEO, Haijun Zhao, told investors in
February.
Chip makers are seeing a doubling, if not quadrupling, of delivery times for the machinery
required to make semiconductors, said Bruce Kim, chief executive officer at SurplusGlobal
Inc., which sells used chip-making equipment.
At GlobalFoundries, Mr. Caulfield said the firm plans to invest $1.4 billion to expand
capacity at existing facilities this year, and will likely double that figure next year. Some of
his customers have pledged investment capital to secure future capacity, accounting for
30% of the company’s capital expenditure this year, he said. Before the pandemic, the
number was zero.
“You’re seeing a lot of customers saying, ‘I’m not going to let that happen again, my
business is too important,’ ” Mr. Caulfield said.
Workers at GlobalFoundries’ Malta, N.Y., facility. A global chip shortage is hampering production of
everything from home appliances to PCs to autos.
https://www.wsj.com/articles/chinese-chip-maker-in-default-on-2-5-billion-of-dollar-bonds-11607593266?mod=article_inline
https://www.wsj.com/market-data/quotes/HK/XHKG/981
8/6/2021 Why the Chip Shortage Is So Hard to Overcome – WSJ
https://www.wsj.com/articles/why-the-chip-shortage-is-so-hard-to-overcome-11618844905?mod=searchresults_pos1&page=1 8/10
At Intel, Chief Executive Pat Gelsinger said the company would make some of its
production capacity available to produce chips in particular short supply and needed by
auto-component makers. Supply could start improving in six to nine months, Mr.
Gelsinger said in an interview.
Guy Eristoff, chief strategy officer at Israel-headquartered foundry Tower Semiconductor
Ltd. , said chip production can be sped up to 3.5 times the usual time in rare cases by
sorting production lines so that high-priority chips pass through quickly. Some
equipment can be operated for longer before going into preventive maintenance, though
this can come at the cost of lower yields.
Altogether, these measures mean some chips can be churned out in 30 to 40 days from the
usual 120 days, Mr. Eristoff said. But doing so increases overall production times for other
chips. The tweaks can at best increase a fab’s production capacity by 5% and be sustained
for only up to six months.
“There are all sorts of little things you can play with,” said Mr. Eristoff. “But without
buying more equipment, you cannot, in a sustained manner, run that much more than you
are running right now.”
Suppliers are wary that the surge in demand may not last, with panicked buyers
increasing order volumes or placing orders with multiple companies. San Jose, Calif.-
based Broadcom Inc., one of the world’s leading chip companies, is trying to ensure orders
coming in reflect actual demand. It recently reminded investors that it doesn’t allow
customers to cancel chip orders to deter some buyers from making purchase
commitments out of fear of shortages.
https://www.wsj.com/market-data/quotes/TSEM
https://www.wsj.com/market-data/quotes/AVGO
https://www.wsj.com/articles/broadcoms-no-cancel-culture-11614964024?mod=article_inline
8/6/2021 Why the Chip Shortage Is So Hard to Overcome – WSJ
https://www.wsj.com/articles/why-the-chip-shortage-is-so-hard-to-overcome-11618844905?mod=searchresults_pos1&page=1 9/10
“We see customers accelerating their bookings for early deliveries and attempting to
build buffers and creating the demand-supply imbalance,” CEO Hock Tan told investors.
The company is nearly 90% booked for the year.
Auto makers are among the buyers that have felt the shortage most acutely, as cars need
more semiconductors than ever before. Electronics made up more than 40% of a car’s
total cost in 2017, doubling from that in 2007, according to consulting firm Deloitte.
Their use is expected to grow, along with costs. German auto-chip maker Infineon
Technologies AG said it expects the cost of chips in autonomous vehicles to jump to about
$1,200 by 2030 from about $170 currently required for “Level 2” vehicles, or partly
automated cars.
Nanoleaf, a Canada-headquartered smart-lighting maker that primarily produces its
products in Dongguan, southern China, said its lead time for receiving chips used to be
around two to four months. Now, vendors are asking Nanoleaf to place orders it should
expect to receive in January or May 2022.
“Money is almost not even an issue these days. It’s about what you can get,” said Christian
Yan, Nanoleaf ’s chief operations officer. He said he doesn’t know how many microchips his
company can get in the second half of this year. “You have to plead your case,” he said.
For Tower Semiconductor, meeting customers’ demands has turned into a delicate
balancing act that requires looking into factors such as customers’ margins, order
volumes, loyalty and business potential.
Wafers at GlobalFoundries.
https://www.wsj.com/articles/car-chip-shortage-ford-vw-gm-11613152294?mod=article_inline
https://www.wsj.com/market-data/quotes/IFNNY
8/6/2021 Why the Chip Shortage Is So Hard to Overcome – WSJ
https://www.wsj.com/articles/why-the-chip-shortage-is-so-hard-to-overcome-11618844905?mod=searchresults_pos1&page=1 10/10
Copyright © 2021 Dow Jones & Company, Inc. All Rights Reserved
This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit
https://www.djreprints.com.
Appeared in the April 20, 2021, print edition as ‘Chip Makers Fight To Beat Shortage.’
“It’s an incredibly difficult decision to make,” Mr. Eristoff said. “Somebody’s business can
get hurt.”
—Robert Wall in San Francisco contributed to this article.
Write to Eun-Young Jeong at Eun-Young.Jeong@wsj.com and Dan Strumpf at
daniel.strumpf@wsj.com
How the Global Chip Shortage Affects You
The Chip Shortage Is Bad. Taiwan’s Drought
Threatens to Make It Worse.
Biden Touts Infrastructure Proposal in Chip-
Shortage Meeting
GM to Halt Production at Several North
American Plants Due to Chip Shortage
Chip Shortage Is Bad for GM but Worse for Car
Buyers
TSMC Sets Up for Soaring Chip Demand Big Tech Companies Prosper Despite Chip
Shortage
Auto Dealerships Can’t Keep Up With New
Models. The Global Chip Shortage Is to Blame.
How Car Makers Collided With a Global Chip
Shortage
mailto:Eun-Young.Jeong@wsj.com
mailto:daniel.strumpf@wsj.com
https://www.wsj.com/articles/the-chip-shortage-is-bad-taiwans-drought-threatens-to-make-it-worse-11618565400?mod=series_chipshortage
https://www.wsj.com/articles/biden-touts-infrastructure-proposal-in-chip-shortage-meeting-11618253271?mod=series_chipshortage
https://www.wsj.com/articles/gm-to-halt-production-at-several-north-american-plants-due-to-chip-shortage-11617893417?mod=series_chipshortage
https://www.wsj.com/articles/chip-shortage-is-bad-for-gm-but-worse-for-car-buyers-11618234080?mod=series_chipshortage
https://www.wsj.com/articles/tsmc-sets-up-for-soaring-chip-demand-11618486965?mod=series_chipshortage
https://www.wsj.com/articles/big-tech-companies-prosper-despite-chip-shortage-11617810565?mod=series_chipshortage
https://www.wsj.com/articles/auto-dealerships-face-inventory-squeeze-as-chip-shortage-disrupts-production-11616578202?mod=series_chipshortage
https://www.wsj.com/articles/car-chip-shortage-ford-vw-gm-11613152294?mod=series_chipshortage

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Global Links
Jan Steenberg
ls the managing
partner EMEA &
APAC,Supply Chain
Consulting Practice,
and Rtikesh Sharma
is an engagement
director, Procurement
& Manufacturing
Competency Practice,
Tata Consultancy
Services {TCS).They
can be reached at jan.
steenberg@tcs.com
and rakesh.
sharma8@tcs.com.
scmr.com
The n.ew normal wjll require
a new strategic approach
to the circular economy
The time is right for a purpose-driven supply chain.
By Jan Steenberg and Rakesh Sharma
0 n August 10, 2019, the influential Business 8.oundtable announced something that
sounded like it could have been issued by the Vatica;1
.
: Maximizing profits for sharehold­
ers should no longer be the only objective of c orporations. Instead, corporations should
be managed with a purpose to improve the future of our environment, citizens, employees and
other business partners. Take it one step. further, and corporations should no longer look at busi­
ness, the environment or society as separate entities with varying degrees of importance-on the
contrary the new thinking should focus on all three areas in an integrated manner, as the parts of
an organization’s overall strategic and supply chai)l objectives:
• delivering value to om cu stomers;
• investing in our employees;
• dealing fairly and ethically with
our suppfiers;
• supporting the communities in
which we work; and
• generating long-term value for
shareholders, who provide the capital
that allows companies to invest, grow
and innovate.
Think of it as the purpose-driven
supply chain.
Purpose must consider all
dimensions
When the statement was issued, the
Wall Street Journal took exception in an
editorial, and surely, somewhere Milton
Friedman is turning in his grave. But, in
the current environment, there is clearly
something afoot that business needs to pay
attention to with more than lip service.
should be a strategic initiative, the majority have
not fully i nstitutionalized it and are very cautious
FIGURE 1
Integrated strategic
and supply chain objectives
While most companies believe that
corporate social responsibility (CSR) Source: Business Roundtable, “Statement on the Purpose of a Corporation”
SUPPLY CHAIN MANAGllMBNT RllVIEW . )ULY/Auaus-r 2020 9
—‘—‘-“–‘-‘–_;.::;__::::___;___;_:_.:..:c…:.__;__c._:_- ·:_:::_:– ·:..:__:– � ··-·–
. I
The Cognitive Ecosystem
The Circular Economy

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