This chip shortage brings to mind the predicament Japan was in during the 1930s. Recall that Japan was highly vulnerable when the US cut off oil exports to Japan in the late 30s over Japanese aggression in Asia. It may be that computer chips are the oil of the 20s and the US finds itself vulnerable. In excess of 60% of chips come from Asia and China can dramatically reduce our access in a way that could be crippling.
On the bright side, without computer chips the Criminal Cartel's surveillance state crumbles so come on Taiwan invasion!
Why aren't they opening in the U.S.? Taiwan doesn't give me a warm fuzzy feeling. If they are not profitable to develop here, it seems that would be one area where govt investment/subsidization could be justified for national security reasons.
Taiwan semiconductor is opening one in Az and hopes to get into contract semiconductor manufacturing,
Taiwan semiconductor produces 25% of all the world’s semiconductors, and dominates the contract manufacturing.
The problem is fab costs are in the billions and take 2-3 years to happen.
And the newer the technology, the higher the cost to build, but the cheaper cost per chip produced. And keeping up with the technology is expensive. And my guess is the us tax rules / stock stuff make it better financially to outsource the fab. Reduces risk and makes the financial ratios look better.
With a 45 mile long Canadian truck convoy converging on Ottawa in protest of the vax mandate and 50% of U.S. truckers refusing the vax, there can't be much being hauled across the U.S. & Canadian border at the moment... Just my thoughts.
This chip shortage brings to mind the predicament Japan was in during the 1930s. Recall that Japan was highly vulnerable when the US cut off oil exports to Japan in the late 30s over Japanese aggression in Asia. It may be that computer chips are the oil of the 20s and the US finds itself vulnerable. In excess of 60% of chips come from Asia and China can dramatically reduce our access in a way that could be crippling.
On the bright side, without computer chips the Criminal Cartel's surveillance state crumbles so come on Taiwan invasion!
Fab capacity should get better later this year. A new fab is opening in Taiwan and others expanding. It takes 2-3 years for a fab to come online.
Why aren't they opening in the U.S.? Taiwan doesn't give me a warm fuzzy feeling. If they are not profitable to develop here, it seems that would be one area where govt investment/subsidization could be justified for national security reasons.
Intel is breaking ground on a new fab in the US.
Taiwan semiconductor is opening one in Az and hopes to get into contract semiconductor manufacturing,
Taiwan semiconductor produces 25% of all the world’s semiconductors, and dominates the contract manufacturing.
The problem is fab costs are in the billions and take 2-3 years to happen.
And the newer the technology, the higher the cost to build, but the cheaper cost per chip produced. And keeping up with the technology is expensive. And my guess is the us tax rules / stock stuff make it better financially to outsource the fab. Reduces risk and makes the financial ratios look better.
Check the newest post.
With a 45 mile long Canadian truck convoy converging on Ottawa in protest of the vax mandate and 50% of U.S. truckers refusing the vax, there can't be much being hauled across the U.S. & Canadian border at the moment... Just my thoughts.