Influence of resource compensation and complete information on green sustainability of semiconductor supply chains

• Published in: International journal of production economics Vol. 271; p. 109227
• Main Authors: Song, Yanwu, Dong, Ying
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.05.2024
• Subjects: Complete information; Cournot competition model; Resource compensation; Semiconductor supply chains; Semiconductor supply chains; Resource compensation; Cournot competition model; Complete information
• ISSN: 0925-5273; 1873-7579
• DOI: 10.1016/j.ijpe.2024.109227

The semiconductor industry provides technological support for a wide range of industries, including artificial intelligence, communications, consumer electronics, and medical instruments, but it also contributes to high resource consumption and pollution emissions, which are detrimental to global sustainable development. To promote the semiconductor industry's economic stability and sustainability in parallel with ecological and environmental protection, public awareness of sustainability is driving manufacturers to improve resource utilization and achieve green production of their products. To encourage manufacturers to contribute to global sustainability, governments are involved in supply chain decision-making based on resource and compensation policies. Using efficient resource utilization as an entry point, this study aims to explore whether manufacturers can effectively address the risk known as “strangle hold stuck neck” based on advanced resource utilization in their manufacturing processes, and the role of resource compensation versus full information in this context. The study shows that, in the presence of business competition or geopolitical factors, the disclosure of resource utilization levels to upstream technology suppliers by manufacturers with green production advantages increases their exposure to price increases. Whether or not upstream technology suppliers change their technology licensing decisions or have full information, resource efficiency policies can contribute to a stable product supply and more efficient resource utilization. Notably, there are limits to the setting of taxes and subsidies in resource compensation policies, and different scenarios exhibit different limiting functions for subsidies and taxes. •Manufacturers with low-cost advantage face the mark-up risk from upstream technology.•Upstream technology suppliers with complete information are at distinct advantage.•Resource compensation can break the absolute position of technology suppliers.•Resource compensation promotes the semiconductor industry's sustainable growth.