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> Because China is offering 3x the pay. Obviously this isn't sustainable. in the software world, I've seen this happen and the salaries never get rolled back.

• godelski 6y ago
  Sure, but those company's extra cash flow isn't coming from the government, they are coming from capital investors. At the end of the day these two have completely different motives. A capital investor expects to get capital back, where a government may not. Motivation could be to harm another country, a long term (20+ years) technological investment, or many other things. Considering the geopolitical situation we could interpret this as an attack and defense (economic warfare). TSMC is Taiwan's most important industry and is one of the reasons the West helps protect them (besides the military advantage of location). China has long said that Taiwan is not a sovereign nation and rather a rebellious territory that is acting illegally. What we're seeing is part of a war going on, not two companies competing (TSMC vs SMIC).
  • 8note 6y ago
    The government still expects a return, it just might not be in terms of profit. How is two companies companies different from economic war?
    • godelski 6y ago
      > How is two companies companies different from economic war? Are two companies fighting or are two governments? If I'm the government and hand you ten million dollars and say "hey, go poach some employees from that strategically valuable company that is in the country of my enemy." I'm not sure what part you aren't getting. That the government is handing SMIC cash? Because I said that three times now.