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This shouldn't surprise anyone here because we've seen it happen time and time again with Silicon Valley. The urban infrastructure in the Bay Area is truly awfu
by jmyeet 3y ago
This shouldn't surprise anyone here because we've seen it happen time and time again with Silicon Valley. The urban infrastructure in the Bay Area is truly awful. The cost-of-living is out-of-control. There has been many attempts to recreate SV elsewhere [1] and while there has been some success, nothing has rivalled the original.
So people are in the Bay Area because people are in the Bay Area and that's hard to transplant or reproduce because a startup in Ohio will ultimately have better access to capital, people and an entire ecosystem by relocating to SV.
A lot of Chinese (and Taiwanese) companies now benefit from a culture they've created. Additionally there are supply issues. Factories in Shenzhen or Guanghzhou or Taiwan can now get all the supplies they need from all the factories that exist in that area. There's no cultural or language barrier with suppliers and the rest of the company.
It is going to be extremely difficult and require sustained dedication to recreate chip manufacturing somewhere other than Taiwan, China, Japan or South Korea. Those places have decades of experience at this point and (now) an ecosystem advantage.
"How did we get here?" is an interesting question because Taiwan's chip dominance was largely created by US manufacturers repeatedly seeking short-term cost-cutting. Dell (for example) would start assembling PCs in Taiwan to save on labor costs. And then they'd make PCB boards to save costs. And then they'd produce the RAM and storage there. Ultimately the entire PC was made there and suddenly they've created Asus and have funded every step of its development.
[1]: https://en.wikipedia.org/wiki/List_of_technology_centers#Places_with_%22Silicon%22_names https://en.wikipedia.org/wiki/List_of_technology_centers#Pla...
- trashtester 3y agoThe difference is the massive strategic importance of not having such a reliance on a single location that your primary rival is claiming the right to take by force at any time. Think of fabs as having similar advantages to being distributed as do data centers. Imagine the added cost and latency if every data center on Earth was located around SF?