EO Outlines Actions to Strengthen Software Supply Chain Security across Federal Government

Supply Chains: Front Lines for a New Cold War?

January 22, 2025

Article

As global dynamics shift and geopolitical tensions rise, supply chains have become the battleground for economic and strategic dominance. Once considered a logistical backbone of global trade, supply chains are now a vector for conflict.

Whether it’s the weaponization of critical minerals, cyberattacks on vital infrastructure, or trade restrictions that choke production, the impact on businesses and governments is unprecedented.

In this emerging era, businesses must rethink how they operate, shifting from reactive crisis management to proactive resilience strategies. A new forecast report from Exiger, Supply Chain Resilience: 7 Factors to Watch in 2025, sheds light on the critical vulnerabilities and actions needed to secure supply chains against these growing threats.

[Download Now: Supply Chain Resilience: 7 Factors to Watch in 2025]

Weaponization of the Periodic Table

One of the most pressing threats is the weaponization of critical minerals like antimony, gallium, and germanium, essential components in U.S. defense systems and critical infrastructure. The People’s Republic of China (PRC), which dominates global production of these minerals, has implemented export bans that escalate the trade conflict with the United States.

“These bans aren’t just trade restrictions — they’re strategic moves in an economic chess game,” says Derek Lemke, SVP of Product Level Intelligence at Exiger. “If geopolitical tensions continue to rise, we could see even greater disruptions in critical mineral supply chains. It’s almost like the new Cold War in the supply chain itself.”

The implications are widespread. Antimony, used in munitions and flame retardants, and gallium and germanium, crucial for semiconductors and infrared optics, are essential to the defense industrial base. The U.S. relies heavily on imports for these materials, leaving it vulnerable to supply chain disruptions.

Global Supply Chain Disruptions

The targeting of supply chains is not limited to minerals. Russia has reportedly considered banning exports of nickel and titanium, critical for aerospace manufacturing, while Houthi rebels have attacked shipping vessels in the Red Sea, disrupting global trade routes.

“Nation-states and associated actors have recognized the importance of supply chains as a vector of attack,” explains Bob Kolasky, SVP of Critical Infrastructure at Exiger. “You’ve got to know and trust your suppliers, as well as the provenance and integrity of the parts in your supply chain.”

The U.S. microelectronics supply chain is another critical vulnerability, with over 80% of manufacturing concentrated in Taiwan. “If actions were taken against Taiwan by the PRC, our actual supply of microelectronics within the United States and the western world could dry up,” says Chris Fraser, VP of Analytics at Exiger.

“Visibility is key. If you’re not mapping your supply chain down to tier three, four, or five, you’re flying blind. You need to know where your supply chain may feel a tariff crunch or geopolitical pressure.”

Brandon Daniels

CEO, Exiger

Reshoring and Resilience

To counter these threats, the U.S. is increasingly focused on reshoring and friend-shoring manufacturing. Initiatives like the CHIPS Act aim to bolster domestic production of semiconductors, reducing reliance on overseas suppliers. However, reshoring efforts require a data-driven approach to identify dependencies across multi-tier supply chains.

“Visibility is key,” says Brandon Daniels, CEO of Exiger. “If you’re not mapping your supply chain down to tier three, four, or five, you’re flying blind. You need to know where your supply chain may feel a tariff crunch or geopolitical pressure.”

Daniels emphasizes the need for companies to invest in resilience and technology. “At the end of the day, this isn’t just about tariffs. It’s about rethinking how we build and manage supply chains. Companies that take this moment seriously will not just weather the storm; they’ll come out stronger.”

Supply Chain Warfare: A Wake-Up Call

As Exiger’s report outlines, supply chains have become a focal point in global conflict, underscoring the urgent need for organizations to build resilience. From diversifying supplier bases to gaining end-to-end visibility and leveraging advanced monitoring tools, proactive measures are essential.

“To remain viable and competitive, U.S. companies and federal agencies alike must be able to withstand advanced state-actor threats,” Kolasky concludes. “This requires investing in the right technology to gain end-to-end visibility of supply chains, as well as using the right tools to share risk insights within the U.S. federal agency ecosystem.”

For a deeper look into the key factors shaping supply chain resilience in 2025, read Exiger’s white paper, Supply Chain Resilience: 7 Factors to Watch in 2025. This comprehensive roundup explores strategies to navigate challenges like tariffs, software supply chain security, and regulatory shifts, providing actionable insights for businesses and governments.

[Download Now: Supply Chain Resilience: 7 Factors to Watch in 2025]

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