Raw Materials -> America: +Tariffs
Incomplete chips -> Taiwan: ++Tariffs
Complete chips -> America: +++Tariffs
Seems rather wasteful.
Raw Materials -> America: +Tariffs
Incomplete chips -> Taiwan: ++Tariffs
Complete chips -> America: +++Tariffs
Seems rather wasteful.
So, now they get shipped back and forth across the Pacific...twice? Wow. So much "winning".
I mean, if you compare a ton of tropical wood or fruit to a ton of microchips, the value of the latter is so much better, that this is not such a problem. There will still be some logistical overhead even if much of the processes will happen in the USA. These are supply chains more complex than anything in our daily lives.
I think it could pressure the us to produce more things fully domestically
If that were possible, they wouldn't be shipping the back to Taiwan for final processing.
I meant like it puts pressure on the us to make things so they can make things on their own
FYI, this is an AI specific chip. US manufacturing still has supply issues with low tech, cheap chips .
FYI, about half of Nvidia cards are assembled in China. The PCB, cooling, capacitors and voltage regulators are made in China, regardless of assembly location.
Most of these components could easily be made elsewhere, albeit at a higher cost.
back when i was doing research for the DoD, we would order the PCBs we designed from an authorized US supplier, and we would assemble them with our reflow oven, cuz China was a no-no. Also, PCB assembly is so automated that probably labor cost isn't important anymore, but the supply chain benefits of Shenzhen still win from the logistics perspective
Assembly is relatively straightforward, but sourcing all the components locally is likely getting harder and harder. Granted, for DoD contract reasons there's likely a cottage industry that relies on government rules to keep things onshore. That's part of the reason why we still have some made in the USA clothing.
This is worth a listen or a watch if you're interested.
There’s a huge difference between making a PCB and a modern processor.
Meaning China is doing what Lenin wanted to do at some point - to use some basic laws of globalization (then imperialism) to kill its source. Formulated as "they will sell us the rope to hang them", and didn't transpire. But, well, Lenin planned for NEP to last till 80s, and then start all the socialist reforms in the society. Then he died. Together with most of those famous Bolsheviks from Soviet movies about the revolution. All from different reasons in a few years.
In this case rejecting the logistical and power benefits from using Chinese labor and facilities seems impossible as of now for Western economies.
lol. Good luck trying to train American workers to build such microchips. It’s not gonna happen. They won’t work 24 hour a day.
The US produces a lot of chips, they just aren't the consumer market leader. The US also prototypes the revolutionary new processes, i.e. 65nm-> 20nm -> ...-> 5nm -> 3nm processes all started in the US. But once the process has been proofed, and it's time for volume they send it to Israel or Taiwan to be mass produced because it's cheaper and for no other reason.
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