Seven out of 10 global companies plan to reorganise their supply chains within the next five years. As prolonged trade wars combine with worries about an economic downturn, a "supply chain diet" aimed at cutting costs and diversifying risk is moving into full swing. Analysts say companies are now executing long-term regional diversification strategies rather than taking reactive steps tied to tariffs.

A "C-Suite Outlook 2025" survey by The Conference Board of more than 1,700 global executives showed 71 percent of U.S. CEOs plan to change their supply chains within the next 3 to 5 years. That was up 17 percentage points from 54 percent last year. The figure was higher among European CEOs at 77 percent, up 16 percentage points from 61 percent last year.

The purpose of the supply chain reorganisation is to reduce costs and minimise the risk of supply disruptions. About 80 percent of CEOs who took part in the survey cited those as the main drivers. It explained that U.S. CEOs selected vendor diversification as their top priority, while European and Asian CEOs prioritised performance tracking using digital technology and AI.

Behind the trend are geopolitical tensions including the U.S.-China conflict. While the U.S.-China conflict existed before, it previously remained a discussion at the level of "risk management." The difference now is that it is leading to actual investment and relocations of production bases. The share of U.S. CEOs planning supply chain changes in The Conference Board survey jumped from 54 percent to 71 percent in a year.

In particular, about 50 percent of Asian and European CEOs and 34 percent of U.S. CEOs said tensions among the United States, the European Union and China have a large impact on their companies. A high share of CEOs also cited an intensifying trade war as the biggest geopolitical risk. Concerns over cyberattacks, at 25 percent among CEOs and 36 percent among C-level executives, and energy price instability, at 35 percent, were also cited.

Apple is a representative case that has already completed a supply chain restructuring and is seeing results. Tim Cook (팀 쿡), Apple's chief executive officer, said at an earnings announcement: "From June 2025, most iPhones sold in the United States will be made in India." He said iPads, Macs, Apple Watches and AirPods are "almost entirely" made in Vietnam. He added, "We realised a long time ago that keeping everything in one place carries too much risk," and said China will continue to remain a key manufacturing country for products sold outside the United States. He was emphasising a regional diversification strategy rather than a complete shift away from China.

As a result, Apple grew even as global consumption weakened. Counterpoint Research said Apple posted a 20 percent share of the global smartphone market and 10 percent year-on-year growth. Global smartphone shipments rose 2 percent in 2025 from a year earlier. It recorded the highest growth rate among the global top five brands in major emerging markets as demand increased for premium products.

It also took the top spot in China, where preference for domestic companies is strong. In the fourth quarter of 2025, it ranked first in China's smartphone market with a 22 percent share. Shipments rose 28 percent from a year earlier as strong demand for the iPhone 17 series combined with expanded supply.

◆"Keeping everything in one place is risky"...South Korean companies also still reshaping supply chains

South Korean companies are no exception. Hyundai Motor Group brought forward the start-up of its "Metaplant America (HMGMA)" in Georgia. The importance of production on the U.S. mainland has grown even amid tariff threats.

HMGMA was completed in May last year, allowing Hyundai Motor Group to establish an annual U.S. production system of 1 million vehicles. It plans to add another 200,000 vehicles and expand capacity to 1.2 million. S&P Global Ratings analysed that Hyundai Motor's expanded local production in the United States offsets uncertainty over the Inflation Reduction Act and helps defend market share.

The battery sector shows a different pattern, but the direction is the same. Three South Korean battery makers, LG Energy Solution, SK On and Samsung SDI, depend heavily on the U.S. advanced manufacturing production tax credit (AMPC). Without AMPC, they are effectively in a loss-making structure. Still, as Ford and GM delay investment due to slower electric vehicle demand, battery companies have also shifted into a mode of securing "flexibility," including adjusting the timing of plant operations.

With trade wars and recession worries persisting, the industry sees supply chain competitiveness as corporate survival. An industry official said, "Supply chain restructuring requires massive upfront investment and it is difficult to see results in the short term." The key is "persistence," the official said.