Semiconductor

The adoption of artificial intelligence (AI) is pushing the demand for semiconductors to an all-time high. But the industry’s greatest opportunities come with challenges too. The industry faces talent shortages, supply chain issues and changing regulations that threaten its ability to meet demand. At Willis, a WTW business, we understand these challenges. We can help you create comprehensive risk management and insurance portfolios that address the complexities of the industry, ensuring your business remains resilient, sustainable and protected.

Key services for semiconductor companies

Navigating the increasingly complex landscape of the semiconductor industry requires a holistic approach to risk management. Our team of 75 experts will help you identify vulnerabilities and strengthen operational resilience so you can make informed strategic decisions. We’ll help you challenge assumptions and align your risk management with long-term business goals through our key services:

• Risk register review: We help you refine your risk registers, considering longer time horizons to challenge assumptions about likelihood and impact. This ensures that your risk management strategies are robust and forward-looking
• Executive team scenario planning: Our team helps with executive scenario planning, preparing your leaders to respond effectively to potential risks. This includes simulations and strategic planning sessions to improve decision making
• Supply chain resilience: We work closely with your suppliers to understand and address supply chain risks. Using diagnostic mapping, monitoring tools and analytics, we help you visualize, quantify and assess risks in specific locations, ensuring your supply chain remains robust
• Insurance provisions review: We review your insurance provisions to ensure you understand what is and isn’t covered. We identify and address gaps to prevent potential losses, providing peace of mind for your business

Semiconductor industry risks and challenges

Semiconductors sit at the heart of technological progress. They power transformative technologies such as AI, mobile phones and electric cars. But new and growing risks come with the opportunities these new and growing markets present.

• Supply chain disruptions: Semiconductor supply chains are vulnerable to geopolitical shocks, natural disasters and logistical bottlenecks. We offer specialized solutions to identify and mitigate vulnerabilities in your supply chain
• Geopolitical tensions: Rising global instability and trade restrictions can threaten operations and sourcing strategies. Our global perspective helps you navigate the complex geopolitical landscape, helping your business remain resilient and sustainable
• High research and development (R&D) costs: Developing next-generation chips demands significant investment with uncertain returns. We offer risk management solutions such as intellectual property insurance to protect against the financial risks of high R&D investments
• Rapid technological advancements: The pace of innovation can outstrip existing risk frameworks and operational capabilities. Our services help you stay ahead of the curve, enabling your risk management strategies to align with the latest technological developments
• Talent demand: The industry faces a growing shortage of skilled workers, impacting productivity and growth. We help manage the risks associated with your talent needs, supporting your workforce in preparing for the future
• Economic cycles: Market volatility and shifting demand can affect profitability and long-term planning. We help you prepare for economic fluctuations, facilitating your business's stability and profitability
• Environmental and energy concerns: Semiconductor manufacturing is resource-intensive and subject to strict environmental regulations. Our environmental liability insurance and energy management solutions help you address sustainability and regulatory compliance
• Cybersecurity threats: Increasing digitalization and data sensitivity make semiconductor companies prime targets for cyberattacks. We offer comprehensive cyber insurance and risk management services to protect your intellectual property, sensitive data and operations

Semiconductor insurance products and solutions

The semiconductor industry faces a wide array of risks that demand the attention of experts who can design custom insurance and risk management strategies that meet your unique needs. From protecting physical assets and intellectual property to navigating geopolitical uncertainty and environmental regulations, our experts will design coverage and strategies to safeguard every facet of your operations. Whether you're building new fabs, transporting sensitive cargo or investing in cutting-edge R&D, we help you manage risk with confidence. Our services include:

• Property and business interruption insurance: Protects your physical assets and operations from unexpected disruptions, ensuring business continuity.
• Cyber insurance: Safeguards your business against cyber threats and data breaches, providing comprehensive risk management
• Product liability insurance: Ensures your products are protected against potential liabilities, giving you peace of mind
• Directors and officers (D&O) insurance: Helps protect your leaders from legal and financial risks, supporting your business's stability
• Environmental liability insurance: Helps you address environmental risks and regulatory compliance challenges
• Political risk insurance: Helps mitigate risks associated with geopolitical tensions, supporting your business's global operations
• Trade credit insurance: Protects your business against non-payment from customers, ensuring financial stability
• Supply chain insurance: Helps ensure your supply chain is resilient and protected against potential disruptions
• Equipment breakdown protection: Covers the costs of equipment failures and repairs, minimizing downtime
• Workers’ compensation insurance: Helps protect your employees and comply with legal requirements, supporting your workforce
• Enterprise risk management (ERM): We create customized risk management strategies to meet the specific needs of your semiconductor company, including size, location and manufacturing processes
• Cargo insurance: Protects against the risks associated with transporting semiconductor cargo globally
• Construction insurance: Tailored risk management and insurance products for semiconductor construction projects
• Intellectual property insurance and risk management: We provide a range of services to mitigate intellectual property (IP) risks, including IP insurance, tech errors and omissions (E&O), judgment preservation insurance and other contingent risk coverages for IP litigation

Semiconductor expertise and experience

With the adoption of transformative technologies like AI, demand for semiconductors is at an all-time high. But the industry’s greatest opportunities also bring challenges. Our team has the expertise and experience to help you understand your risks and opportunities and how to create risk management and insurance portfolios to mitigate risk and seize opportunities.