Responsible business conduct in Japan electronics supply chains

Traditionally dominated by vertically integrated firms, the electronics sector moved towards modular industry structures sometime in the 1980s, as the components required to produce electronic goods became more standardized. Under a modular production, assembly operations can easily be separated from technology development, and basic, high-volume components can easily be substituted. This substitutability narrows profit margins in the manufacturing segments and has led to a high degree of offshoring and outsourcing throughout the value chain.