[GroundhogSS]

Interesting article about all of the chips in new cars. I'm sure a lot of us could do with fewer in our Camaros.



https://www.caranddriver.com/news/a3...ign=nl22523366

[MackSteelPrivateEye]

Originally Posted by GroundhogSS

Interesting article about all of the chips in new cars. I'm sure a lot of us could do with fewer in our Camaros.



https://www.caranddriver.com/news/a3...ign=nl22523366

We need to stop depending on China to make our junk and start manufacturing all our own stuff again.

[UnknownJinX]

Originally Posted by MackSteelPrivateEye

We need to stop depending on China to make our junk and start manufacturing all our own stuff again.

Assuming people are willing to pay for it, that is. And capitalism relies on low-cost labour and material.

Can't have your cake and eat it. Not saying it's a good thing, but it is what it is.

Sent from toaster or something

[6sigma]

Originally Posted by UnknownJinX

Assuming people are willing to pay for it, that is. And capitalism relies on low-cost labour and material.

Can't have your cake and eat it. Not saying it's a good thing, but it is what it is.

Sent from toaster or something

Capitalism doesn't rely on low-cost labor, but does seek out the most cost efficient mode of production. An industry like chip fabrication which has a lower labor component than something like auto manufacturing would seem to be economically viable in the US. However, the super high regulatory burden, costs, and tax policy (including import/export tariffs among all countries) make this a challenge. You could ring fence the US industry, but then US chip fab would not be competitive in the global market creating further disadvantage. There are reasons why volume global chip fab is almost entirely in Asia beyond the low cost of labor.

I've read the current constraints on global chip supply are due to shortages of some of the materials that go into chip fab, and not necessarily capacity or labor in the fabs themselves. Something upstream is causing a supply constraint, although there is high demand too which makes the problem worse.

[az4783054]

The shortage will probably miraculously disappear when Americans are all driving electric cars.

[UnknownJinX]

Originally Posted by 6sigma

Capitalism doesn't rely on low-cost labor, but does seek out the most cost efficient mode of production. An industry like chip fabrication which has a lower labor component than something like auto manufacturing would seem to be economically viable in the US. However, the super high regulatory burden, costs, and tax policy (including import/export tariffs among all countries) make this a challenge. You could ring fence the US industry, but then US chip fab would not be competitive in the global market creating further disadvantage. There are reasons why volume global chip fab is almost entirely in Asia beyond the low cost of labor.



I've read the current constraints on global chip supply are due to shortages of some of the materials that go into chip fab, and not necessarily capacity or labor in the fabs themselves. Something upstream is causing a supply constraint, although there is high demand too which makes the problem worse.

That's a much more in-depth explanation, thank you.

The end goal is about maximum profit. The lower labour cost is just a part of it. Efficiency definitely plays a huge role here as well.

Sent from toaster or something

[Rock-It Man]

The reasons that chips made in Asia are less expensive are low cost labor and few controls on pollution and exposure of workers to hazards.

Additionally a substantial portion of these chips are counterfeit and therefore even lower in quality.

Incredibly our American high tech weapons also depend on these crappy parts. Millions of dollars are wasted dealing with the substandard and defective ones.