Abstract
The COVID 19 pandemic and the Russian-Ukrainian war have caused significant disruptions in the semiconductor supply chain. These disruptions have laid bare the vulnerabilities of global supply chains, prompting discussions about the adoption of localization strategies. In this context, this paper conducts an in-depth analysis of Japan's semiconductor industry. It investigates the repercussions of both the COVID-19 pandemic and the war, evaluating the effectiveness of supply chain localization strategies in mitigating disruptions and enhancing Japan's competitive advantage. The central thesis of the paper posits that localizing the highly fragmented semiconductor supply chain can substan-tially increase its resilience and create a competitive advantage.
Drawing insights from a combination of interviews and secondary data, our findings reveal that the localization strategy presents numerous theoretical benefits alongside various limitations. As a result of our comprehensive analysis, we advocate for a strategic approach that integrates elements of lo-calization, diversification, and business expansion. This targeted approach is envisioned as a means to capitalize on the advantages of localization while navigating its inherent challenges.
https://ror.org/02kpeqv85 
