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Can someone explain why a semiconductor production facility would be “punishingly” expensive to operate in the US? Maybe the cost of electricity, but it seems
by iambateman 8y ago
Can someone explain why a semiconductor production facility would be “punishingly” expensive to operate in the US?
Maybe the cost of electricity, but it seems like the labor cost wouldn’t make a huge difference since most of the production work (I presume) is automated.
- axaxs 8y agoI don't see how, either. TI, Intel, GloFo, and a few others have facilities here. Sure China can do it cheaper, but IMO the race to the bottom is over. People want quality, which explains why Apple and Samsung outsell, say, BLU.
- hobofan 8y agoI guess it's could also be a) A missing local supply chain for the raw resources, making them more expensive b) Additional shipping cost, since every chip will still be assembled into the product in Asia anyway
- nyolfen 8y agoi would imagine at least part of it is supply chain centralization around eg shenzhen. it would have to be much more than just the fabs to be competitive
- gnopgnip 8y agoSafety, and environment costs. Many of the former semiconductor sites in the US are now superfund sites. Doing work exactly the same way it is done overseas would be illegal in the US, and doing it legally is expensive.