With TSMC, it’s insurance against China invading Taiwan but Intel (and probably everyone else) got a load of subsidies too. After the chip shortage during the pandemic and Russia invading Ukraine, chip production became a national security issue.
Less risk of tariffs on China, less risk of supply chain disruptions like with the pandemic, takes advantage of incentives from the US government, and is something that is cool to advertise.
Tariffs in general aren’t new, but Trump’s tariffs were applied haphazardly and poorly determined because he doesn’t understand what they are. Avoiding that uncertainty entirely is a good idea.
We learned during concentrating all of your production in one small country wasn’t a good idea. Plus having multiple sources has always been suggested in case anything goes wrong with one company you can still have some production.
These facilities are expensive, like 20-30B for the big ones. If you’re curious youtube has some good long videos on how these places work. As far as I’ve checked all the gov grants given to companies as incentives (whether chips or energy or other infrastructure projects) only partially cover the costs of construction.
But then US interference most directly affects US jobs and customers. That’s a much better er situation.
Think of car manufacturers that have done this for decades. They may have a global supply chain, heading mostly back to their home country, but they also have worldwide plants near their customers. Thanks partly to similar incentives and tariffs, my Honda was assembled in, I think, Kentucky, and was as us-manufactured as any us brand, meaning us jobs, us manufacturing, partial us supply chain. The result has been almost entirely good.
Apple wants to cut down on counterfeiting. The US wants to prevent supply chain issues and reduce reliance on foreign chip production. The wiki article on the CHIPS Act is a pretty good overview: https://en.m.wikipedia.org/wiki/CHIPS_and_Science_Act
We’ve spent the last few decades outsourcing key industries, where US no longer has as much manufacturing and we’re way too dependent on other countries. It took supply chain disruptions from COViD to realize how much of a bad idea that was.
We’re finally trying to recapture some of those key jobs, industries, supply chains, dependencies, starting with chips and renewable energy. THANKS, BIDEN! this is what will make America great again
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Because the U.S. government gave them $6.6 billion to do it under the CHIPS Act: https://www.reuters.com/technology/tsmc-wins-66-bln-us-subsidy-arizona-chip-production-2024-04-08/
With TSMC, it’s insurance against China invading Taiwan but Intel (and probably everyone else) got a load of subsidies too. After the chip shortage during the pandemic and Russia invading Ukraine, chip production became a national security issue.
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From a business perspective: more control over the manufacturing process and less risk of getting hit by tariffs
Less risk of tariffs on China, less risk of supply chain disruptions like with the pandemic, takes advantage of incentives from the US government, and is something that is cool to advertise.
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Tariffs change. Especially when Trump or another nutcase is in office.
Tariffs in general aren’t new, but Trump’s tariffs were applied haphazardly and poorly determined because he doesn’t understand what they are. Avoiding that uncertainty entirely is a good idea.
Not about being in the us specifically. But about keeping your manufacturing near your entire supply chain.
But the uncertainty of what will come soon for tariffs is
Because it’s in the US?
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It answers the question for you.
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Nice way to be rude.
Multiple sources of production.
We learned during concentrating all of your production in one small country wasn’t a good idea. Plus having multiple sources has always been suggested in case anything goes wrong with one company you can still have some production.
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Those countries probably didn’t pay 5.5 billion dollars for TSMC to build a new facility in their country.
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These facilities are expensive, like 20-30B for the big ones. If you’re curious youtube has some good long videos on how these places work. As far as I’ve checked all the gov grants given to companies as incentives (whether chips or energy or other infrastructure projects) only partially cover the costs of construction.
And are susceptible to interference. Samsung is also building huge manufacturing infrastructure in the US.
So now it can be subject to US interference. Geopolitics folks.
But then US interference most directly affects US jobs and customers. That’s a much better er situation.
Think of car manufacturers that have done this for decades. They may have a global supply chain, heading mostly back to their home country, but they also have worldwide plants near their customers. Thanks partly to similar incentives and tariffs, my Honda was assembled in, I think, Kentucky, and was as us-manufactured as any us brand, meaning us jobs, us manufacturing, partial us supply chain. The result has been almost entirely good.
Apple wants to cut down on counterfeiting. The US wants to prevent supply chain issues and reduce reliance on foreign chip production. The wiki article on the CHIPS Act is a pretty good overview: https://en.m.wikipedia.org/wiki/CHIPS_and_Science_Act
We’ve spent the last few decades outsourcing key industries, where US no longer has as much manufacturing and we’re way too dependent on other countries. It took supply chain disruptions from COViD to realize how much of a bad idea that was.
We’re finally trying to recapture some of those key jobs, industries, supply chains, dependencies, starting with chips and renewable energy. THANKS, BIDEN! this is what will make America great again