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0 pointspzduniak3y ago0 comments

As far as I understand, the primary reason for these investments is not to address the shortages, but to decouple Western nations from their reliance on Taiwanese silicon. Most of the remaining shortages - which are still happening in many industries, eg. heat pump shortages in Europe are mostly blocked by chip supply - are caused by the production backlog of the older/cheaper/different technologies.

So the goal is political. The economy can take a hit to achieve it.

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tooltalk3y ago

Well, the foundry business is now a two-horse race between Samsung and TSMC. Intel, many believe won't make it. The US gov't knows it too -- that's why Trump arm-twisted TSMC to open new plants in Arizona.

Samsung was making Apple's A's in Austin, Texas some time ago, but Apple ditched Samsung's US manufacturing in favor of their China/Taiwan-first offshore outsourcing strategy.

mschuster913y ago

> Samsung was making Apple's A's in Austin, Texas some time ago, but Apple ditched Samsung's US manufacturing in favor of their China/Taiwan-first offshore outsourcing strategy.

Apple runs an Asia-first strategy these days, they are divesting from China at top speed (whether that's due to sanction threats, the risk of operating in dictatorships, raising wages in China or a combination of that is up for debate). It doesn't make much sense for Apple economically and logistically to use US-made products as they have to be shipped across the ocean to the assembly plants.

phpisthebest3y ago

Apple should be investing in a North America first strategy and getting manufacturer for everything spun up here

tooltalk3y ago

>> ... they are divesting from China at top speed...

I'm not entirely convinced that that's what Apple is doing.

The Information reported[1] last year that Apple made ginormouse investments ($270+B) in China's domestic tech industry to train their workforce and foster China's tech manufacturing. That was 6-7 years ago. It was also revealed very recently that Apple was still trying mighty hard to source more materials and chip suppliers from China's domestic tech industry (eg, YMTC) in spite of the on-going US sanctions on MIC chips -- in this particular case with YMTC, Apple finally gave up only after the Biden admin expanded export control on YMTC last week[2].

I don't think Apple is deterred by Xi's dictatorship, China's geopolitical threats to Taiwan/the South Sea conflict with other SEA countries, or the Uigher (and other ethnic minoority groups) human rights concerns, despite their virtue signaling here in the US. Sure, I think the justification for Biden's foreign/trade policies is up for debates, but what is quite clear is that Apple hasn't really changed its China/Taiwan-first business practices.

1. https://www.theinformation.com/articles/facing-hostile-chine...

2. https://asia.nikkei.com/Business/Tech/Semiconductors/Apple-f...

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tooltalk3y ago

Samsung was making Apple's A's in Austin, Texas some time ago, but Apple ditched Samsung's US manufacturing in favor of their China/Taiwan-first offshore outsourcing strategy.

mschuster913y ago

> Samsung was making Apple's A's in Austin, Texas some time ago, but Apple ditched Samsung's US manufacturing in favor of their China/Taiwan-first offshore outsourcing strategy.

phpisthebest3y ago

Apple should be investing in a North America first strategy and getting manufacturer for everything spun up here

tooltalk3y ago

>> ... they are divesting from China at top speed...

I'm not entirely convinced that that's what Apple is doing.

1. https://www.theinformation.com/articles/facing-hostile-chine...

2. https://asia.nikkei.com/Business/Tech/Semiconductors/Apple-f...

j / k navigate · click thread line to collapse