# Computers and electronics: Value chain, from upstream to the customer Assemblers turning chips and displays into phones, PCs, servers and consumer devices Source page: https://www.materialinsights.org/industries/computers_electronics/value-chain/ #### 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 componentsChip and memory suppliers**5 · Chokepoint Sell processors, memory, storage controllers, radio and power chips to device brands and their assemblers; chips are the costliest part of most devices.^[1](https://www.jeita.or.jp/english/press/2025/1216.pdf)^,^[6](https://evertiq.com/design/2025-11-26-global-dram-revenue-jumps-309-in-3q25) **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 Silicon](https://www.materialinsights.org/commodities/silicon/)[Au Gold](https://www.materialinsights.org/commodities/gold/) Chemicals [ESG Electronic specialty gases](https://www.materialinsights.org/chemicals/electronic_gases/) Energy [HVAC AC transmission](https://www.materialinsights.org/energy/e_hvac/) Industries [Semiconductors](https://www.materialinsights.org/industries/semiconductors/)**Examples:** Qualcomm, MediaTek, Samsung Electronics, SK hynix, Intel **Passive component and circuit-board makers**3 · Important Make 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 Copper](https://www.materialinsights.org/commodities/copper/)[Ni Nickel](https://www.materialinsights.org/commodities/nickel/)[Ta Tantalum](https://www.materialinsights.org/commodities/tantalum/)[Ba Barite](https://www.materialinsights.org/commodities/barite/)[Pd Palladium](https://www.materialinsights.org/commodities/palladium/)[Sn Tin](https://www.materialinsights.org/commodities/tin/) Chemicals [EPX Epoxy resins](https://www.materialinsights.org/chemicals/epoxy/)[UPW Ultra-pure wet chemicals](https://www.materialinsights.org/chemicals/wet_chemicals/)[FR Flame retardants](https://www.materialinsights.org/chemicals/flame_retardants/) Energy [HVAC AC transmission](https://www.materialinsights.org/energy/e_hvac/)[EH Electric heating](https://www.materialinsights.org/energy/e_electric_heat/) Industries [Metal products](https://www.materialinsights.org/industries/metal_products/)[Plastic and rubber products](https://www.materialinsights.org/industries/plastic_rubber/)**Examples:** Murata, TDK, Yageo, Zhen Ding Technology, Kaynes Technology **Display and battery-cell makers**4 · Critical Supply 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 Indium](https://www.materialinsights.org/commodities/indium/)[Li Lithium](https://www.materialinsights.org/commodities/lithium/)[Co Cobalt](https://www.materialinsights.org/commodities/cobalt/)[Gr Graphite](https://www.materialinsights.org/commodities/graphite/)[REE Rare earths](https://www.materialinsights.org/commodities/rare_earths/)[Qz Silica sand](https://www.materialinsights.org/commodities/industrial_sand/) Chemicals [CAM Battery cathode materials](https://www.materialinsights.org/chemicals/cathode_materials/)[AAM Battery anode materials](https://www.materialinsights.org/chemicals/anode_materials/)[LiPF6 Battery electrolytes](https://www.materialinsights.org/chemicals/electrolytes/)[ESG Electronic specialty gases](https://www.materialinsights.org/chemicals/electronic_gases/) Energy [HVAC AC transmission](https://www.materialinsights.org/energy/e_hvac/)[NMC Nickel-rich lithium-ion batteries](https://www.materialinsights.org/energy/e_li_nmc/) Industries [Semiconductors](https://www.materialinsights.org/industries/semiconductors/)**Examples:** BOE, Samsung Display, LG Display, ATL (Amperex Technology), Corning **Enclosure and mechanical-part makers**2 · Supporting Machine, 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 Aluminium](https://www.materialinsights.org/commodities/aluminum/)[St Steel](https://www.materialinsights.org/commodities/steel/)[Mg Magnesium](https://www.materialinsights.org/commodities/magnesium/)[Cu Copper](https://www.materialinsights.org/commodities/copper/)[Ti Titanium](https://www.materialinsights.org/commodities/titanium/) Chemicals [PC Polycarbonate](https://www.materialinsights.org/chemicals/polycarbonate/)[ABS ABS](https://www.materialinsights.org/chemicals/abs/)[Pnt Paints and coatings](https://www.materialinsights.org/chemicals/paints_coatings/)[Adh Adhesives and sealants](https://www.materialinsights.org/chemicals/adhesives/) Energy [Mot Electric motors and drives](https://www.materialinsights.org/energy/e_motors/) Industries [Metal products](https://www.materialinsights.org/industries/metal_products/)[Plastic and rubber products](https://www.materialinsights.org/industries/plastic_rubber/)[Machinery and equipment](https://www.materialinsights.org/industries/machinery/)**Examples:** Lens Technology, BYD Electronic, Tata Electronics, Foxconn Interconnect Technology Stage 2 **Product design and platformsDevice brands (OEMs)**4 · Critical Design 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 [Semiconductors](https://www.materialinsights.org/industries/semiconductors/)[Software and IT services](https://www.materialinsights.org/industries/software_it/)**Examples:** Apple, Samsung, Lenovo, Dell, Lava International **Operating-system and firmware platform owners**5 · Chokepoint Supply 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](https://www.materialinsights.org/energy/e_data_centres/) Industries [Software and IT services](https://www.materialinsights.org/industries/software_it/)[Data centres and cloud](https://www.materialinsights.org/industries/data_centres/)**Examples:** Google, Apple, Microsoft, AMI Stage 3 **AssemblyContract manufacturers (EMS and ODM)**4 · Critical Assemble, test and often co-design devices and servers for brands at large scale, earning thin margins on very large revenues.^[2](https://www.siasat.com/indias-electronics-exports-crossed-rs-4-lakh-crore-in-2025-vaishnaw-3325132/amp/)^,^[3](https://telecomlead.com/electronics/foxconn-posts-record-q4-revenue-on-surging-ai-server-demand-124017) **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 Tin](https://www.materialinsights.org/commodities/tin/)[Ag Silver](https://www.materialinsights.org/commodities/silver/)[Cu Copper](https://www.materialinsights.org/commodities/copper/) Chemicals [Adh Adhesives and sealants](https://www.materialinsights.org/chemicals/adhesives/)[N2 Nitrogen gas](https://www.materialinsights.org/chemicals/nitrogen_gas/)[IPA Isopropanol](https://www.materialinsights.org/chemicals/isopropanol/) Energy [HVAC AC transmission](https://www.materialinsights.org/energy/e_hvac/)[HP Heat pumps, air conditioning and refrigeration](https://www.materialinsights.org/energy/e_heat_pumps/) Industries [Machinery and equipment](https://www.materialinsights.org/industries/machinery/)[Electrical equipment](https://www.materialinsights.org/industries/electrical_equipment/)[Real estate](https://www.materialinsights.org/industries/real_estate/)**Examples:** Foxconn (Hon Hai), Pegatron, Quanta, Wistron, Dixon Technologies Stage 4 **DistributionIT distributors and logistics providers**2 · Supporting Import, 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](https://www.materialinsights.org/energy/e_buildings/) Industries [Transport and logistics](https://www.materialinsights.org/industries/transport_logistics/)[Paper and packaging](https://www.materialinsights.org/industries/paper_packaging/)[Finance: banking, insurance, markets](https://www.materialinsights.org/industries/finance/)**Examples:** Ingram Micro, TD Synnex, Redington, Savex Technologies Stage 5 **Retail, service and end of lifeRetailers, carriers and repair centres**1 · Commodity service Sell 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](https://www.materialinsights.org/energy/e_buildings/) Industries [Wholesale and retail trade](https://www.materialinsights.org/industries/wholesale_retail/)[E-commerce and digital marketplaces](https://www.materialinsights.org/industries/ecommerce/)[Finance: banking, insurance, markets](https://www.materialinsights.org/industries/finance/)**Examples:** Amazon, Croma, Reliance Digital, Best Buy **E-waste collectors and recyclers**2 · Supporting Collect 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 Gold](https://www.materialinsights.org/commodities/gold/)[Cu Copper](https://www.materialinsights.org/commodities/copper/)[Co Cobalt](https://www.materialinsights.org/commodities/cobalt/) Chemicals [H2SO4 Sulphuric acid](https://www.materialinsights.org/chemicals/sulphuric_acid/)[HCl Hydrochloric acid](https://www.materialinsights.org/chemicals/hydrochloric_acid/) Energy [HVAC AC transmission](https://www.materialinsights.org/energy/e_hvac/) Industries [Waste and recycling](https://www.materialinsights.org/industries/waste_recycling/)**Examples:** Attero Recycling, Umicore, Recykal ## Other sections - [Overview](https://www.materialinsights.org/industries/computers_electronics/index.md) - [Where ₹100 goes](https://www.materialinsights.org/industries/computers_electronics/cost-mix/index.md) - [Price links with suppliers](https://www.materialinsights.org/industries/computers_electronics/price-links/index.md) - [Example story](https://www.materialinsights.org/industries/computers_electronics/story/index.md) - [Linked industries](https://www.materialinsights.org/industries/computers_electronics/linked-industries/index.md) - [Materials drawn on](https://www.materialinsights.org/industries/computers_electronics/materials/index.md) - [Chokepoints and risks](https://www.materialinsights.org/industries/computers_electronics/risks/index.md) - [Sources](https://www.materialinsights.org/industries/computers_electronics/sources/index.md)