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Unintended consequences of blocking semiconductor sales to China. It's the perennial question for all company CEOs: Do we 'buy built' which is quicker, cheape
by simonblack 7y ago
Unintended consequences of blocking semiconductor sales to China.
It's the perennial question for all company CEOs:
Do we 'buy built' which is quicker, cheaper and easier, but leaves us dependent on external manufacturers?
Or, do we 'build our own' which is expensive in terms of development time and energy and wasted dead-ends, but will eventually make us independent of external manufacturers?
Most CEOs tend to choose the cheaper 'buy built' path. As did Huawei with US semiconductors. But if they are forced to take the 'build our own' path, as when Trump banned US technological sales to Huawei, the end effect will be for the US manufacturers to miss out completely on the already huge, and growing further, Chinese market for semiconductors.
(And that's not counting the future competition between the massive new Chinese semiconductor manufacturers and the US semiconductor manufacturers who previously held the monopoly. Why are people in the West seemingly blind to the fact that, all by itself, the internal Chinese market is larger than the whole of the Western market?)