> Software salaries have to fall a lot more to keep semiconductor experts from doing lateral moves. It's quite similar to the Baumol effect [1], and I think th

> Software salaries have to fall a lot more to keep semiconductor experts from doing lateral moves. It's quite similar to the Baumol effect [1], and I think that's what the CCP and the Chinese authorities more generally had in mind when they cracked down on the likes of Tencent and Alibaba a few years ago, meaning forcing the big Chinese software companies down a peg or two so that Chinese engineers would also go into the hardware industry. It also helps that while pure software is important for fighting a war, actually making physical stuff is even more important. No-one has ever won a war by employing Tik-Tok against the enemy, while autonomous mass-produced cheap drones have been as close to a game-changer as one could get in this current war in Ukraine (for both sides). [1] https://en.wikipedia.org/wiki/Baumol_effect https://en.wikipedia.org/wiki/Baumol_effect