General > General Technical Chat
May be more opportunities for EE in the USA coming...
Rick Law:
Wall Street Journal article (May 11, 2020):
Trump and Chip Makers Including Intel Seek Semiconductor Self-Sufficiency
Pentagon says coronavirus pandemic underscores vulnerability from reliance on Asian factories
The Trump administration and semiconductor companies are looking to jump-start development of new chip factories in the U.S. as concern grows about reliance on Asia as a source of critical technology.
A new crop of cutting-edge chip factories in the U.S. would reshape the industry and mark a U-turn after decades of expansion into Asia by many American companies....
https://www.wsj.com/articles/trump-and-chip-makers-including-intel-seek-semiconductor-self-sufficiency-11589103002
bob91343:
The way politicians think is dangerous. They have no clue.
There are few foundries in the US for a number of reasons. In a free market the companies are in fierce competition and shaving even a tiny cost from an item can make the difference between success and failure.
Since Asian companies pay low wages, they can sell at low prices. To do the same thing in the US would require illegal wage rates. So what are they suggesting - artificially subsidize US factories? That wouldn't be sustainable. These idiots in Washington are money and power hungry and think that passing a law will change things.
It's not gonna happen. For years I have asked the question, what are we going to do when we run out of third world countries to make cheap stuff? Once the Chinese stabilize and pay decent wages they will lose their competitive advantage. Then perhaps it will be the Africans' turn to crank out low cost products. After that, what then? We may be forced to pay fair prices, something we do not now do.
maginnovision:
If cogs goes up so does the price. People will get used to it. I don't think that part is a huge issue. Just result in higher tariffs on imported goods to even things out despite labor costs in different markets. Is it really a big deal if people can't buy as many smart watches, smart speakers, smart phones etc...? Probably help some people get their priorities in order.
I used to work in manufacturing and really liked it. I'd love to see more of it here again.
Nauris:
--- Quote from: bob91343 on May 13, 2020, 05:56:34 am ---There are few foundries in the US for a number of reasons. In a free market the companies are in fierce competition and shaving even a tiny cost from an item can make the difference between success and failure.
Since Asian companies pay low wages, they can sell at low prices. To do the same thing in the US would require illegal wage rates. So what are they suggesting - artificially subsidize US factories? That wouldn't be sustainable. These idiots in Washington are money and power hungry and think that passing a law will change things.
--- End quote ---
Chip fabs are mostly in the hi-tech hi-wage asian countries so wages are really not the deciding factor, it has more to do with existing infrastructure, traditions and technical excellence in that area.
Rick Law:
--- Quote from: bob91343 on May 13, 2020, 05:56:34 am ---The way politicians think is dangerous. They have no clue.
There are few foundries in the US for a number of reasons. In a free market the companies are in fierce competition and shaving even a tiny cost from an item can make the difference between success and failure.
Since Asian companies pay low wages, they can sell at low prices. To do the same thing in the US would require illegal wage rates. So what are they suggesting - artificially subsidize US factories? That wouldn't be sustainable. These idiots in Washington are money and power hungry and think that passing a law will change things.
It's not gonna happen. For years I have asked the question, what are we going to do when we run out of third world countries to make cheap stuff? Once the Chinese stabilize and pay decent wages they will lose their competitive advantage. Then perhaps it will be the Africans' turn to crank out low cost products. After that, what then? We may be forced to pay fair prices, something we do not now do.
--- End quote ---
We are both in support of competition, but we have a perspective on competition.
In my opinion, technology is what would bring better products. Without technology improvement, all we have is how to cut cost - that will likely lead us to junk: stuff made at the lowest possible cost.
I like to see nations compete on technology rather than price. The more nations participate in technology competition, the more technology advances. Better technology itself will bring cost down to some degree, and have other benefits. Most important benefit being: The more expansive (not expensive) the technology industry, the more opportunities for people, and the more bright-minds will join in to do it.
In short, more techno-competition gives us more money/influence for the CTO or the CIO, and less for the COO and CFO... More bright-minds going into technology instead of Wall Street and Banks.
EDIT: Original reply forgot the inserted quote. Edit to re-insert the quote
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