Reference no: EM133293748

Case: In its quest for agility and wider margins, it had become reliant on offshore partners like the Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics for semiconductor fabrication.3 Recent geopolitical tensions have exposed this outsourced business model as rife with vulnerabilities for many US technology companies. The latest supply issues with the RTX 3080 underscored the need for a strategic re-evaluation. Looking ahead to a future marked by uncertainties and certain risks, Nvidia's senior management wondered how it could build a strategic plan to allow its business to survive and thrive. The company is facing supply chain problems with business partners like the US-China trade and the Taiwan trade. Navida's supply problem is caused by a strategic drift, as they decided to cut off ties with the US-China trade. The company also wanted to limit the Hawaiian trade, which would not work best for them as they could not attain outsourced supplies. They have to come up with a new strategy that will guide them to success in the future. The strategy should be able to define a clear vision and mission statement for its employee. It also has to integrate its supply chain management; doing so will require them to make hard decisions like branching off and in trade with China and Taiwan. This problem occurred because of supply chain issues as well as not having a strong strategy for the company, which is caused by a lack of vision. Its most recent product launch has suffered from significant supply delays from its offshore semiconductor fabricators and knock-on effects of sanctions imposed by the US Commerce Department. These challenges have exposed the weaknesses of the outsourced business model and the fragility of the global semiconductor ecosystem.

Case Study: Nvidia and the great east-west semiconductor game

What are the alternatives this company should consider?