McGee's love, AMD has two major fabs, one in Austin which is being converted to Flash ONLY, and their fab in Dresden Germany which is the only AMD fab building their Athlon processor.
The point is McGee isn't bothered by AMD producing parts overseas but somehow the posibility that someday (and again I have no knowledge) Intel may build a chipset (ie low technology) fab in China, this bothers him greatly.
BTW, I am a stockholder of both AMD and Intel.
There might be something to that statement. The Chinese can't afford the good stuff, especially on a mass scale.
Margins in China are extremely tight. Some tech companies are going into cooperation with each other in China to drive costs down. Thats unheard of.
The Chinese market is extremely price sensitive. At the same time the government (where all these techies sell their stuff) is willing to spend lots...however they want 10 chips for the price of what we would pay for 4 of them...
There has to be a happy medium there somewhere. That medium is "4 year old tech"...sold to ensure a profit. They are going to have to sell things as commodity items.
The government of China is about to turn its attention from cel phones to internet infrastructure... and they want bang for their buck.
If they pour 4 or 5 billion into China in upfront costs, it will take them years to recoup that...maybe never...
If they are planning on using old, but tried already, tech, and go in with low overhead, and aim for a low cost producer... then you might be safe. Maybe.
Also check on the number of entrants into the China sector too. Competition is going to be mad and pricing done on price war footing.
Thats how the CCP likes it.
As time passed, the Chinese figured things out. Last few years Motorola has been losing ground in China. The CCP "figured out" that they were being overcharged when Motorola posted returns...
That was viewed as 'screwing the Chinese'...
Now there are several competitive companies in China, and few make big money.
As for the internet, China has gone through the routine once, and the window of big profits that Motorola had at first won't really happen.
I posted the article because it has to do with a US corporation's dealing with the Chinese. As McGee points out, there are many tech corporations with production facilities in China, and he didn't disparage any of them for it. Why you think this is a hit piece on Intel is beyond me, but whatever floats your boat.