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Making chips in US makes little sense except to get the coveted tarif relief for the very few remaining highly tarriffed goods. And if China decides to put san

Making chips in US makes little sense except to get the coveted tarif relief for the very few remaining highly tarriffed goods. And if China decides to put sanctions on your fabs, you will just get a $10B microelectronics theme park on your hands because you will have nowhere to sell your chips. Do not count the last point lightly. I'm fully serious saying that US will likely have nowhere to sell those chips to. And that itself is an even bigger problem for US than it falling behind in semi competition by itself.

FooBarWidget 6y ago
> And if China decides to put sanctions on your fabs, you will just get a $10B microelectronics theme park on your hands because you will have nowhere to sell your chips. This is already happening. Except that the sanctions came from the US, not from China. The US forced TSMC not to sell to Huawei and other Chinese companies the US put on the entity list. Chinese companies that aren't yet sanctioned, are becoming reluctant to buy chips from foreign suppliers.
UncleOxidant 6y ago
> And if China decides to put sanctions on your fabs, you will just get a $10B microelectronics theme park on your hands because you will have nowhere to sell your chips. China could also decide that they won't sell their more advanced chips to the US (or any chips for that matter if it got serious).
- FooBarWidget 6y ago
  Ironically, this is exactly what's going on right now... Except it's the US denying advanced chips to China. The US forced TSMC and Samsung not to sell to Huawei for example.
  - baybal2 6y ago
    It also denied a big chunk of chip market to the automotive industry, including its own.
wbl 6y ago
Do you think the US can't retaliate by throwing sanctions on consumer goods back? Board assembly is automated. It can move back here.
- kwere 6y ago
  china biggest trade partner is europe and they are grooming Africa and other countries, so they with almost a modern economy will care little of sanctions. Maybe Us will get the kickback having to deal (aka subsidie)with unhappy lobbies
  - CyanBird 6y ago
    > they are grooming Africa and other countries What's up with this language, being an economic partner is now "grooming"? My country was literally coup'd by the US in order to maintain its access to my nation's natural resources through US/British companies, how is that for "grooming"?

FooBarWidget 6y ago

> And if China decides to put sanctions on your fabs, you will just get a $10B microelectronics theme park on your hands because you will have nowhere to sell your chips. This is already happening. Except that the sanctions came from the US, not from China. The US forced TSMC not to sell to Huawei and other Chinese companies the US put on the entity list. Chinese companies that aren't yet sanctioned, are becoming reluctant to buy chips from foreign suppliers.

UncleOxidant 6y ago

> And if China decides to put sanctions on your fabs, you will just get a $10B microelectronics theme park on your hands because you will have nowhere to sell your chips. China could also decide that they won't sell their more advanced chips to the US (or any chips for that matter if it got serious).

FooBarWidget 6y ago
Ironically, this is exactly what's going on right now... Except it's the US denying advanced chips to China. The US forced TSMC and Samsung not to sell to Huawei for example.
- baybal2 6y ago
  It also denied a big chunk of chip market to the automotive industry, including its own.

wbl 6y ago

Do you think the US can't retaliate by throwing sanctions on consumer goods back? Board assembly is automated. It can move back here.

kwere 6y ago
china biggest trade partner is europe and they are grooming Africa and other countries, so they with almost a modern economy will care little of sanctions. Maybe Us will get the kickback having to deal (aka subsidie)with unhappy lobbies
- CyanBird 6y ago
  > they are grooming Africa and other countries What's up with this language, being an economic partner is now "grooming"? My country was literally coup'd by the US in order to maintain its access to my nation's natural resources through US/British companies, how is that for "grooming"?