International Chip Supply Impact Assessment

The high-tech industry is dependent on chip manufacturing originating in Asia. Companies that develop high-tech equipment rely on a steady supply of chips to meet customer demand. However, recent increases in extreme storms have raised doubts about the reliability of the supply chain from Asia during these events. As a result, companies are reassessing their critical supply chains to help ensure a dependable chip supply.

Resilient Analytics was the physical risk consultant in this effort, with the responsibility to analyze potential impacts to supply chain production from extreme events. Of particular concern were potential increases in typhoons and storm surge which could result in manufacturing stoppages for an extended period.

Resilient Analytics analyzed potential changes in extreme storms throughout the region with a focus on thresholds related to manufacturing interruption. The team worked with the client to establish specific risk thresholds, determining the acceptable levels of risk for each location. Additionally, the team engaged specialist consultants to gain insights into potential alterations in storm tracks over the next two decades.