Sometimes I read the phrase "downstream dependency/ies" and "upstream dependency/ies" of a software component.

When talking of a software component X, saying "X has a dependency" makes me think of something on which X depends, so why could this thing be "upstream" or "downstream"?

So maybe the point is that a "downstream dependency of X" is somethig that depends on X (so X would be the depend-ee), whereas "upstream dependency of X" is something which X depends on (so X would be the depend-er)?