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1. Labour-wise probably 3-4 times the Taiwan, but labour cost of fabs is microscopic in comparison to everything else. Taiwan does not have dramatically lower
by baybal2 5y ago
1. Labour-wise probably 3-4 times the Taiwan, but labour cost of fabs is microscopic in comparison to everything else.
Taiwan does not have dramatically lower taxes than US, but there is something particular to how working capital is accounted which will make for a double digit difference in the in TW vs. US.
Third is supplies. Even before the semi moving to Asia, US fabs had to import a big portion of their supplies.
2. > Why did the US outsourced the semiconductor fabrication in the first place
Why did US outsource almost everything, even when it makes no sense?
It simply tough, tedious, problematic doing business in the US.
I wrote about it many times before here.
You mind your own business, very much literally. Few month down the line some trouble comes: lawsuit, taxmen, utilities, creditors, SEC, city hall, suppliers, random activists, labour union... pick any.
- imtringued 5y ago>1. Labour-wise probably 3-4 times the Taiwan, but labour cost of fabs is microscopic in comparison to everything else. Building a fab requires labor, a lot of it.
- baybal2 5y agoThere are only 2-3 construction companies globally who build factories as complex as modern semi fabs. Imagine, where they get their workers? They import them all from their home countries.
- ithkuil 5y agoWhat are their home countries? Sorry I could do my own research, but since you made a comment that implied you had a piece of information at hand, I feel I may just get it easier this way.
- baybal2 5y agoExyte (Germany) was a big one. I myself haven't been up to date with news in the industry for around 10 years since I abandoned all attempts to enter the industry.