Key facts
- US tech sector is most vulnerable to offshore supply chain disruptions.
- Vulnerability is particularly high for semiconductor chips, servers, and PCs built in China.
- The US currently lacks manufacturing capacity for many of these critical tech items.
- New tech innovations present opportunities to build domestic manufacturing infrastructure.
A new report from McKinsey highlights significant vulnerabilities within the US technology sector concerning offshore supply chains, particularly those involving China. Eric Kutcher, McKinsey's North America chair, identified semiconductor chips, servers, and personal computers as key areas where the US remains susceptible to disruptions. He pointed out that the US currently lacks the domestic manufacturing capabilities for many of these essential technology components. However, Kutcher also suggested that emerging 'generations' of technological innovation could provide a pathway for the US to develop and build out the necessary infrastructure to reduce this reliance on foreign manufacturing.