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Fascinating that the author starts an article on the danger of monopolization with Bell Labs as an icon of American innovation, as the reason Bell Labs existed
by topkai22 7y ago
Fascinating that the author starts an article on the danger of monopolization with Bell Labs as an icon of American innovation, as the reason Bell Labs existed was Bell's monopoly of the American telephone system. I really wish he had addressed that, especially as it suggests that a well regulated monopoly may be desirable.
I also wish he'd addressed that the barriers to entry in many of these areas are extremely high, and not just for monopolistic reasons - There is an analogue to Moores law (I can't remember the name) that states that the cost of a semiconductor fab facility doubles roughly at the pace semiconductors shrink. Where this is happening (and its been happening in defense aerospace for a long time), there is a natural trend toward consolidation because the payoff is too low to up another facility or line.
Overall an amazing article though.
- AstralStorm 7y agoMilitary tech can do easily without highest level integration. (In fact enhancing robustness and simplifying maintenance.) The problem is keeping lower tech fabs afloat as they wouldn't get much external business. And if course sourcing base rare earth and chemical components into processes. Even machinery itself is getting problematic. EU faces the same problem, tackling it semi-successfully with regulation, but it's size limited. Russia keeps its military to itself in working condition with few dependencies, but it is getting increasingly outdated...
- wrycoder 7y agoNot only that, but semiconductor equipment manufacturing and, to a great extent, its design has been offshored to the Far East. Many of the associated US engineering experts have since retired. The lead time to replace this capability is likely decades, not years.
- swagasaurus-rex 7y agoI meet many people in the younger generation who cannot find skilled work even with STEM degrees. There is a real human toll that comes with these decisions, in that so many talented individuals that work coffee shops and service jobs, unable to score a technical job without X years experience because their genius and talent is simply not valued by companies. At least, not at the wages these companies have come to demand.
- khuey 7y agoThe Department of Commerce claims that the US produces half of the world's semiconductors and slightly less than half of the world's semiconductor manufacturing equipment. https://www.trade.gov/topmarkets/pdf/Semiconductors_Executive_Summary.pdf https://www.trade.gov/topmarkets/pdf/Semiconductors_Executiv...
- nickpsecurity 7y agoThat probably includes companies that are U.S.-owned with overseas fabs. I don't think I'd count that as U.S. production if thinking about jobs or subversion. Corroborated by something in the report which corroborates many of the fabs mostly being outside the U.S.: "Over 90 percent of global semiconductor manufacturing equipment sales outside the United States take place in five markets: China, Taiwan, Japan, Korea (South) and the EU, creating a very concentrated market. "