Computers and electronics: Value chain, from upstream to the customer
Assemblers turning chips and displays into phones, PCs, servers and consumer devices
Value chain, from upstream to the customer
Criticality to the chain: 5 · Chokepoint 4 · Critical 3 · Important 2 · Supporting 1 · Commodity service Stage 1 Chips and core componentsSell processors, memory, storage controllers, radio and power chips to device brands and their assemblers; chips are the costliest part of most devices.1,6
Why chokepoint: SK hynix, Samsung and Micron took about 92% of DRAM revenue in Q3 2025 and a few firms supply phone processors and modems, so a chip shortage stops assembly lines, as in 2021-22. Technologies Mobile and PC processors DRAM and NAND flash Cellular modems and Wi-Fi chips Power-management chips AI accelerators for servers Depends on Commodities Si SiliconAu Gold Chemicals ESG Electronic specialty gases Energy HVAC AC transmission Industries SemiconductorsExamples: Qualcomm, MediaTek, Samsung Electronics, SK hynix, IntelMake the capacitors, resistors, inductors, connectors and printed circuit boards on which every device is built, selling to assemblers in huge volumes at low unit prices.
Why important: Many suppliers exist, mostly in Japan, Taiwan, Korea and China, but high-end capacitors and HDI boards are concentrated and qualifying alternatives takes months. Technologies Multilayer ceramic capacitors High-density interconnect and flexible PCBs Surface-mount components Connectors and cable assemblies Depends on Commodities Cu CopperNi NickelTa TantalumBa BaritePd PalladiumSn Tin Chemicals EPX Epoxy resinsUPW Ultra-pure wet chemicalsFR Flame retardants Energy HVAC AC transmissionEH Electric heating Industries Metal productsPlastic and rubber productsExamples: Murata, TDK, Yageo, Zhen Ding Technology, Kaynes TechnologySupply LCD and OLED panels and lithium-ion cells, the two largest non-chip cost items in phones and laptops.
Why critical: Panel output is concentrated in China and Korea and consumer cells in China, with few qualified alternatives for flagship devices. Technologies OLED and LTPO panels Mini-LED backlights Touch sensors and cover glass Lithium-ion pouch cells Battery management systems Depends on Commodities In IndiumLi LithiumCo CobaltGr GraphiteREE Rare earthsQz Silica sand Chemicals CAM Battery cathode materialsAAM Battery anode materialsLiPF6 Battery electrolytesESG Electronic specialty gases Energy HVAC AC transmissionNMC Nickel-rich lithium-ion batteries Industries SemiconductorsExamples: BOE, Samsung Display, LG Display, ATL (Amperex Technology), CorningMachine, mould and finish casings, frames, hinges, keyboards and thermal parts, selling to assemblers or directly to brands.
Why supporting: Many competing suppliers in China, Vietnam and India; tooling for a new supplier takes weeks to a few months. Technologies CNC machining of aluminium unibodies Injection moulding Metal stamping and die casting Anodising and coatings Heat pipes and vapour chambers Depends on Commodities Al AluminiumSt SteelMg MagnesiumCu CopperTi Titanium Chemicals PC PolycarbonateABS ABSPnt Paints and coatingsAdh Adhesives and sealants Energy Mot Electric motors and drives Industries Metal productsPlastic and rubber productsMachinery and equipmentExamples: Lens Technology, BYD Electronic, Tata Electronics, Foxconn Interconnect TechnologyDesign products, own the brand, choose components and assemblers, and sell to retailers, carriers, enterprises and consumers; they capture most of the profit.
Why critical: A few brands dominate each category (phones, PCs, servers) and switching brands for a buyer is easy, but for suppliers losing one brand can mean losing a large share of business. Technologies Industrial and mechanical design Hardware engineering and validation Custom chip design (for the largest brands) Supply-chain management Product security and updates Depends on Industries SemiconductorsSoftware and IT servicesExamples: Apple, Samsung, Lenovo, Dell, Lava InternationalSupply the operating systems, firmware and app stores that make hardware usable, licensing them to brands or bundling them in their own devices.
Why chokepoint: Two mobile platforms and essentially one PC platform dominate, and devices cannot be sold at scale without them. Technologies Android, iOS, Windows, Linux BIOS/UEFI firmware App stores and update services Device security and attestation Depends on Energy DC Data centres Industries Software and IT servicesData centres and cloudExamples: Google, Apple, Microsoft, AMIAssemble, test and often co-design devices and servers for brands at large scale, earning thin margins on very large revenues.2,3
Why critical: Foxconn alone booked NT$ 8.10 trillion of revenue in 2025, and moving a flagship product to another assembler or country takes a year or more. Technologies Surface-mount technology lines Automated optical and functional test Server rack integration and liquid-cooling assembly Factory automation and robotics Manufacturing execution systems Depends on Commodities Sn TinAg SilverCu Copper Chemicals Adh Adhesives and sealantsN2 Nitrogen gasIPA Isopropanol Energy HVAC AC transmissionHP Heat pumps, air conditioning and refrigeration Industries Machinery and equipmentElectrical equipmentReal estateExamples: Foxconn (Hon Hai), Pegatron, Quanta, Wistron, Dixon TechnologiesImport, stock, finance and ship devices to retailers, system integrators and resellers, and handle reverse logistics.
Why supporting: Several national and global distributors compete in each market and brands can switch within weeks. Technologies Warehouse management systems Channel credit and financing Bonded warehousing Configuration and imaging services Depends on Energy Bld Energy in buildings Industries Transport and logisticsPaper and packagingFinance: banking, insurance, marketsExamples: Ingram Micro, TD Synnex, Redington, Savex TechnologiesSell devices to consumers and businesses through stores, online marketplaces and telecom carriers, and provide warranty repair.
Why commodity service: Many competing outlets online and offline; customers and brands switch easily. Technologies Omnichannel retail systems Device financing and trade-in Authorised repair and spare-parts logistics Depends on Energy Bld Energy in buildings Industries Wholesale and retail tradeE-commerce and digital marketplacesFinance: banking, insurance, marketsExamples: Amazon, Croma, Reliance Digital, Best BuyCollect old devices, refurbish what can be resold and recover gold, copper, cobalt and other metals for sale to refiners.
Why supporting: Many formal and informal recyclers exist; regulation, not capacity, is the main constraint. Technologies Shredding and sorting Hydrometallurgical metal recovery Data wiping Extended producer responsibility tracking Depends on Commodities Au GoldCu CopperCo Cobalt Chemicals H2SO4 Sulphuric acidHCl Hydrochloric acid Energy HVAC AC transmission Industries Waste and recyclingExamples: Attero Recycling, Umicore, Recykal