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Asia And The IT Supply Chain: Could A Link Break?

With its high concentration of manufacturers turning out components essential to the world's IT industry, an earthquake, tsunami, or other disaster could one day mean disaster to the tight IT supply chain.

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Asia At The Center Of The Global IT Supply Chain

A combination of low labor costs, talented workforces, and strong design skills turned Asia into the center of the world's IT supply chain. Vendors and VARs worldwide depend on Asian manufacturers for the components needed to bring their IT products to life.

But such concentrations come at a price. An earthquake, tsunami, or some other man-made or natural disaster could disable part of that infrastructure and result in widespread shortages and price increases for components, which could impact the ability to deliver servers, storage, networking gear and other hardware.

Turn the page for a country-by-country look at Asia's part in the global IT supply chain according to a 2013 study by research firm IHS. While the data presented shows the percentage of manufacturers that have their headquarters in each country rather than the percentage of components manufactured there, the conclusion is the same: A disaster in Asia is a disaster for the world.

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