Knowledge Center
Blog
Navigating supply chain disruptions in electronics

Navigating supply chain disruptions in electronics

From chip innovation to sustainable sourcing and blockchain traceability, a leading Korean electronics company is rethinking supply chain resilience and demonstrating the power of purposeful innovation.

Infios

May 27, 2025

7 min

Blog

As one of the world’s leading electronics and semiconductor giants, a major Korean electronics manufacturer operates at the heart of a highly complex, global supply chain. From raw material sourcing to end-user delivery, every node in the chain is vulnerable to disruption, and this company has faced its share in recent years.

This blog post explores how the company is navigating a shifting geopolitical landscape, semiconductor volatility, workforce demands and growing pressure for sustainable, tech-enabled supply chains.

We also highlight some less discussed but critical elements: how labor unrest and AI innovation are shaping its next chapter in supply chain resilience.

Tariffs, trade tensions & regional relocation

The company's global footprint has historically provided a competitive edge, but it also exposes the company to sudden geopolitical shifts.

In early 2025, the U.S. administration announced a 25% tariff on South Korean imports, including TVs and appliances. While South Korea entered negotiations seeking an exemption, Samsung promptly assessed relocation options.

Currently, most of the company's TVs for the U.S. market are assembled in Mexico and California, with appliances produced in South Carolina and Baja California.

A complete production shift could help the manufacturer sidestep tariff costs and shorten lead times, reflecting a broader trend among global manufacturers to regionalize supply chains for enhanced resilience.

Industry Insight : A 2023 McKinsey survey revealed that 44% of companies are developing regionalized supply networks, up from 25% the previous year, indicating a significant shift towards regionalization in response to global disruptions.

Semiconductor setbacks & AI-era adjustments

The ongoing US–China tech decoupling has had a chilling effect on chipmakers. The company's device solutions unit, which includes its memory and logic chip business, reported a 62% drop in operating profit in Q1 2025, largely driven by export restrictions targeting high-bandwidth memory (HBM) chips used in AI hardware.

The company is now accelerating qualification of its HBM3E chips for AI customers like NVIDIA, while navigating a sales slowdown in China, one of its largest markets. This delicate balance of maintaining compliance while staying competitive exemplifies the tightrope semiconductor giants must walk in today’s AI-driven, fragmented economy.

The labor gap in supply chain risk

What many analyses overlook is the growing impact of workforce unrest.

In mid-2024, the company experienced its first labor strike in its 55-year history. Sparked by disputes over bonus transparency and leave policies, the strike lasted nearly two months and signaled a growing assertiveness among its unions.

This human factor is often left out of supply chain risk models, yet it can halt production just as effectively as a trade embargo or chip shortage.

Building a sustainable & ethical supply chain

The electronics company works with over 2,500 suppliers worldwide; a vast ecosystem it is seeking to make more sustainable and transparent. Through its Eco-Partner certification program, suppliers are evaluated on environmental impact, hazardous substance management and compliance with global standards.

Additionally, the company offers training and technical support to help partners improve emissions reporting, energy usage and ethical sourcing practices, particularly around conflict minerals.

Digital supply chain innovation: AI, blockchain & predictive logistics

The company isn’t just reacting to disruption—it is reengineering its supply chain for intelligence and traceability. Through its internal data systems, it uses AI analytics (via the Brightics platform) to detect bottlenecks and optimize routing in real time. Their logistics platform, Cello, enables dynamic orchestration across inventory, shipping and last-mile delivery.

The company is also experimenting with blockchain to enhance traceability and reduce fraud across global supplier tiers; a key step in achieving full material visibility and environmental, social and governance (ESG) accountability.

Emerging Trend: AI-native supply chains are becoming the norm. According to Gartner, by 2026, over 75% of large enterprises will have moved to AI-augmented supply chain operations.

What companies can learn from a leading Korean electronics manufacturer

This company's supply chain response offers a masterclass in modern risk navigation. It isn’t simply weathering external pressures, it is reshaping its supply chain strategy to anticipate, absorb and adapt to disruption.

The company sets a forward-looking standard by

Diversifying production locations
Accelerating next-gen chip development
Addressing labor issues head-on
Embedding sustainability and technology into its operations

For any manufacturer aiming to build resilience in an unpredictable world, this electronics leader's playbook is worth studying—especially the parts that go beyond headlines.

Beyond surviving disruption: thriving with Infios

This company's experience is a clear signal: global supply chains must be built for agility, transparency and real-time decision-making. At Infios, we help companies (both small and enterprise) achieve exactly that.

Our end-to-end supply chain execution solutions are designed for today’s environment—one defined by volatility, complexity and constant change. Whether it’s:

Orchestrating global supplier networks with AI-driven visibility
Responding to labor or geopolitical disruptions in real time
Managing inventory, production and fulfillment through a single system of record

We equip supply chain teams to do more than just survive disruption. We help them turn uncertainty into competitive advantage.