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The US just loves shooting itself in the foot. It's an old, old dilemma for Managers: Do we 'buy built' which is cheaper and easier, and faster? Or do we bite
by simonblack 5y ago
The US just loves shooting itself in the foot.
It's an old, old dilemma for Managers: Do we 'buy built' which is cheaper and easier, and faster? Or do we bite the bullet and go the tougher, slower and more costly way and 'build our own'?
Most Managers prefer to 'buy built', but that puts them at the mercy of the manufacturers. They only go the 'build our own' way if forced to. But the beauty of 'build our own' is that those Managers not only get out from under those manufacturers, but they later get to become competition for those same manufacturers.
The Chinese were perfectly happy spending 300 billion bucks a year on American semiconductors. It also went to balance out the US trade deficit with China. The Trump Administration thought it was a smart move to embargo those semiconductors. But the only upshot was that the US manufacturers lost their biggest market, and forced the Chinese to 'build their own'. I give it five years max before the Chinese semiconductor industry lays waste to the American semiconductor industry, which will go the way of the American textiles, paper, automobiles, heavy machinery, tools and building industries to oblivion.
And it all could have been preventable with a little bit of thought.