3 ms·

I'm not a supply chain expert, but just envisioning that export controls have been and will be getting a lot more challenging going forward. Not to mention hig

I'm not a supply chain expert, but just envisioning that export controls have been and will be getting a lot more challenging going forward. Not to mention higher risk at stuff getting held up due to other logistical challenges (i.e. bad weather, etc.) while doing the full roundtrip to Asia and back. If there was chip production (CPU, memory, etc.) out of an Austin fab and LCD screen, battery and other material production in a special economic region in Mexico, seems like there could be a full 3-5 day reduction in the production. Apple sells about 43 million iPhones in the US per year. Shipping 43 million of anything (i.e chips) to Asia only for it to be shipped back (as a finished product) to the US seems counter-productive?

reportingsjr 6y ago
Almost all ICs are packaged in Asia at this time anyhow. Main countries are phillipines, malaysia, and taiwan. In the scheme of things shipping around the world doesnt take all that much time. (Lead times for ICs are 20 weeks at the bare minimum)
- Robotbeat 6y ago
  We really need to package ICs in America. It's all automated now, anyway, so the low labor costs (the original reason for sending packaging to Asia) is MUCH less important.
- throwaway2037 6y ago
  Don't forget about the Intel assembly & packaging plant in Costa Rica! Ref: https://en.wikipedia.org/wiki/Costa_Rica#Economy https://en.wikipedia.org/wiki/Costa_Rica#Economy To quote Wiki: "An Intel microprocessor facility in Costa Rica that was, at one time, responsible for 20% of Costa Rican exports and 5% of the country's GDP." As I understand, for a long time, assembly and packaging was labour-intensive, so ICs were packaged in places with low labour costs. However, with the advances made in automation, I wonder if this still holds true. Maybe assembly and packaging will move back to high income countries in the next generation.

reportingsjr 6y ago

Almost all ICs are packaged in Asia at this time anyhow. Main countries are phillipines, malaysia, and taiwan. In the scheme of things shipping around the world doesnt take all that much time. (Lead times for ICs are 20 weeks at the bare minimum)

Robotbeat 6y ago
We really need to package ICs in America. It's all automated now, anyway, so the low labor costs (the original reason for sending packaging to Asia) is MUCH less important.
throwaway2037 6y ago
Don't forget about the Intel assembly & packaging plant in Costa Rica! Ref: https://en.wikipedia.org/wiki/Costa_Rica#Economy https://en.wikipedia.org/wiki/Costa_Rica#Economy To quote Wiki: "An Intel microprocessor facility in Costa Rica that was, at one time, responsible for 20% of Costa Rican exports and 5% of the country's GDP." As I understand, for a long time, assembly and packaging was labour-intensive, so ICs were packaged in places with low labour costs. However, with the advances made in automation, I wonder if this still holds true. Maybe assembly and packaging will move back to high income countries in the next generation.