Before a chip becomes a CPU or GPU, it undergoes a complex journey through fabrication, assembly, testing, and packaging, often spanning continents. With major OSAT facilities still offshore, the packaging process adds cost, delays, and emissions, while every hand-off increases the risk. For businesses managing key semiconductor materials and components such as substrates, bonding wires, or sub-fab tools, these inefficiencies can disrupt production schedules and the entire supply chain. That’s why semiconductor logistics efficiency has become a critical topic in today’s market and a key focus for 2026.
To address these challenges, companies can choose from several transportation modes, each with distinct advantages and disadvantages. Air logistics, a long-standing staple of the semiconductor supply chain, offers speed and reliability but comes with high costs and a heavy carbon footprint. Ocean freight is more economical and environmentally friendly, yet much slower and less predictable, as transit times fluctuate. Road transport is most effective for short distances, making it ideal for last-mile deliveries. None of these options, on their own, can fully address the complexity of balancing cost and speed while managing several hand-offs across global supply chains.
What if the solution lies in combining modes through hybrid models, such as Sea-Air or Air-Sea, that leverage the strengths of each? For example, moving packaging materials from Kuala Lumpur to Los Angeles by air takes less than a day but at a steep cost. Shipping by sea reduces expenses but stretches end-to-end transit time to months and exposes cargo to route disruptions. A hybrid approach, using air from Kuala Lumpur to Shanghai and fast boat by sea to Los Angeles, cuts delivery time to 25 days versus ocean-only, while reducing expenditure compared to full air freight.
But the question is, how do we maintain cargo integrity across touchpoints? Our team has developed a system that ensures seamless transportation throughout the Kuehne+Nagel Sea-Air service. It starts with smart planning and pre-booking space to secure reliable lead times for time-sensitive components. Synchronised transitions between the legs keep schedules predictable, while priority handling at hubs minimises delays. Moreover, end-to-end visibility and proactive monitoring enable quick responses to disruptions. And when bottlenecks arise, we leverage our global carrier network to reroute flexibly.
As semiconductor supply chains become increasingly complex, intermodal transport provides a practical solution to maintain agility without compromising control, safety or reliability. By reducing transit times, optimising costs, and protecting shipments across hand-offs, this model helps businesses keep production on track and customers satisfied.
Editor’s note: Learn more about this in our recent podcast interview with Barry O’Dowd and Robin Knopf, as part of the SEMICON Europa members spotlight. Start listening at 39:43:
