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The global semiconductor value chain

October 2020 Jan-Peter Kleinhans & Dr. Nurzat BaisakovaThe global semiconductor value chainA technology primer for policy makersThink Tank at the Intersection of Technology and SocietyJan-Peter Kleinhans & Dr. Nurzat BaisakovaOctober 2020 The semiconductor value Chain2 Executive SummarySemiconductors such as memory chips or processors are a foundational technology and the backbone of modern society. Not only are they a pre-requisite for any endeavors into emerging technologies, such as artificial in-telligence, quantum computing or autonomous vehicles. But every industry relies on access to those chips. As a result, they are at the heart of the inten-sifying US-China technology rivalry. China is highly dependent on US-origin semiconductor technologies and the US government uses its export control regime to curb the technological advancements of several Chinese compa-nies.

Integrated device manufacturers (IDMs), such as Intel or Samsung, perform all three steps in-house. Historically, this has been the dominant business model of the semiconductor industry. But with the increasing complexity and costs associated with design and fabrication of leading-edge ICs, many companies now specialize in single production steps.

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