Chip crisis and supply chains: Magdeburg's future in danger?

Chip crisis and supply chains: Magdeburg's future in danger?

In recent years, the chip crisis has had a severe impact on international trade and industry. The players are facing major challenges, especially in Saxony-Anhalt, where the high-tech park in Magdeburg is considered one of the beacons of chip production. Marco Langhof, President of the Saxony-Anhalt Employers' Association, has already pointed out the difficulties affecting semiconductor development. Packaging these chips in particular is labor-intensive and poses problems for many companies. Many semiconductors are currently being shipped to China, which could prove risky due to new geopolitical changes. Loud MDR There is a growing recognition that the international division of labor not only reduces costs but also entails significant political risks.

Saxony-Anhalt's Economics Minister Sven Schulze also makes it clear: Europe is more expensive than other regions when it comes to infrastructure and production. These rising costs have a direct impact on consumer prices. Langhof also expresses his skepticism that companies will learn from crises and diversify their purchasing and supply chains. The departments of large corporations are often very strong in negotiations, which means that they desperately try to minimize expenses.

The future of chip production in Europe

The high-tech park in Magdeburg has ambitiously set out to strengthen the chip industry in Europe. However, Schulze recognizes that the willingness to invest is currently limited. This is all the more dramatic because the EU's share of global chip production is extremely low. The need for additional production sites will become increasingly clear in the coming decades in order to remain competitive.

Another relevant topic is global supply chains, which Caspar Dohmen, an expert in international trade and supply chains, has thought about in detail. His book "Supply chains. Risks of the global division of labor for people and nature" illuminates the problems and perspectives of this topic. Dohmen has reported extensively on the need to hold companies accountable for respecting human rights along their supply chains. This was particularly evident after the Rana Plaza accident in Bangladesh in 2013, which sparked much debate about safety in factories and working conditions.

Changing perceptions and new laws

The public perception of the global division of labor has changed significantly as a result of the Corona pandemic. The clear distinction between industrialized and developing countries is no longer as sharp, as many Eastern European countries often offer lower wages than those in China. In Germany, too, the planned draft supply chain law shows that it is time to take action. In the past, action was often only voluntary, but this could now become mandatory in order to improve the human rights situation.

The EU is also planning a comprehensive supply chain law that could include far-reaching corporate responsibility measures. While environmental protectionism is being discussed as an option to support environmentally friendly production, it is also important that companies start diversifying their supply chains today. This could not only act as risk management, but also as a way to create shorter and more transparent delivery routes.

Current developments show that it is now time to have a good hand and actively work on improving production conditions - both in Germany and internationally. We are facing a turning point that presents both risks and opportunities.