Global supply chains, value added and production intensity: Case semiconductors

Bericht

Semiconductor chips and their production are foundational for future innovation, future developments of digitalization, and economic prosperity. However, the role of production when discussing who is creating and capturing value across different industrial supply chains has often been underestimated. In this report, we analyze the distribution of the value added in the semiconductor supply chain. Value added analysis is insufficient on its own to understand the importance of production; therefore, we also examine the share of operating profits that has been reinvested in the growth of tangible and intangible assets. Based on value added and reinvesting cycle analysis, we discuss production intensity, and we draw conclusion regarding how important production is for different supply chains and industries.

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• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ETLA Report ; No. 113

Classification and Topics

• Classification: Wirtschaft ; Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices ; Firm Organization and Market Structure ; Organization of Production ; Microelectronics; Computers; Communications Equipment
• Subject: Semiconductor industry ; Value chain ; Value added ; Value creation ; Manufacturing ; Tangible assets

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Holmström, Harald ; Kenney, Martin ; Seppäläinen, Timo O.
• Event: Veröffentlichung
• (who): The Research Institute of the Finnish Economy (ETLA)
• (where): Helsinki
• (when): 2021

Further information

• Handle: http://hdl.handle.net/10419/251081