3 ms·

So, you are expecting a race to the bottom, then?

• Sirened 4y ago
  isn't that the whole point of globalization anyways? We wanted super cheap fabs, we got super cheap fabs. The problem is that the cheapest way to get something done may or may not be the most strategic move from a governance standpoint when you don't have a great relationship with the country who is responsible for all of your fabrication.
• somenameforme 4y ago
  There can be no race to the bottom simply because China has cheaper labor and fewer regulations which mean that they are able to produce components, for profit, at a cost below what it would take for us to even produce those same components, let alone show a profit margin on them. The more predictable outcome would be once domestic chips are being manufactured in sufficient quantity, foreign chips are either banned because "national security", or large tariffs are imposed on them. In either case you effectively create an uncompetitive oligopoly within the country in a field with tremendous barriers to entry. I'm sure that'd never be abused.