The electronics supply chain has crossed an inflection point. Two decades of concentrated manufacturing are giving way to a fragmented map of specialized regional hubs, and BCG's analysis of 942 listed manufacturers shows the shift is accelerating fast.
Since 2017, the share of Greater China-headquartered manufacturers with an overseas production footprint has risen from 12% to 56%, led by contract manufacturers and components makers, while capital-intensive semiconductor segments largely stay put. Value itself is on the move too, consolidating upstream in chip design and fabrication as OEMs lose margin share.
Companies that expanded their footprints since 2017 saw market capitalization grow 7.0x, versus 3.4x for those that stayed domestic — though roughly one in four expansions still eroded profits, underscoring that disciplined execution, not movement alone, drives the premium.
With government incentives set to expire and landed costs shifting by up to 8 percentage points depending on strategy and destination, the window to act is narrowing.
Read the full report to learn where to expand, how to manage landed costs, and what separates value-creating moves from costly missteps.
