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There is nothing wrong here. Any country would like to have the jobs, and beyond that the advanced semiconductor supply chain has a long lead time to replicate
by throwaway5752 2y ago
There is nothing wrong here. Any country would like to have the jobs, and beyond that the advanced semiconductor supply chain has a long lead time to replicate and get skilled workforce trained at scale. This is exactly what the Sec. of Commerce should be doing, and the full title of the article,"U.S. Govt pushes Nvidia and Apple to use Intel's foundries — Department of Commerce Secretary Raimondo makes appeal for US-based chip production", gives a better picture of the dynamic here. The government is lobbying for more domestic semiconductor production, not compelling it.
When China invades Taiwan it will be too late to have taken this step. See https://media.defense.gov/2023/Apr/24/2003205865/-1/-1/1/07-AMONSON%20%26%20EGLI_FEATURE%20IWD.PDF https://media.defense.gov/2023/Apr/24/2003205865/-1/-1/1/07-..., and https://global.upenn.edu/perryworldhouse/news/japans-response-chinese-invasion-taiwan-four-year-outlook https://global.upenn.edu/perryworldhouse/news/japans-respons..., et al. Advanced munitions require this capability. Xi is 71 years old now and has promised reunification, this conflict is inevitable and imminent.
The domestic (US) TSMC fabs are also a good step.
- aswanson 2y agoExactly. The pandemic has brought to light the flaws in lassiez faire libertarian economic philosophy. The US has hostile opposition and has to take steps to keep itself safe from adversarial actors. We dont live in an ideal world and we have to act accordingly, not how we want it to be.
- talldayo 2y agoThe whole "let the market settle on a smartest solution" idea works great, until your highest-margin exports start getting manufactured abroad in a country without labor regulation. First cars, then software, and now smartphones. By 2045, America will be the manufacturer of Absolutely Nothing and we'll be incredibly proud of what our businesses accomplished.
- aswanson 2y agoYup. We wont make anything but valuation spreadsheets for private equity to analyze by then. Legacy of Jack Welch and simple-mindedness of shareholder value uber alles.