Posted on 07/12/2023 3:30:37 AM PDT by FarCenter
Contrary to US Commerce Secretary Gina Raimondo and other high-tech nationalists’ wishes, the semiconductor industry is not migrating back to America any time soon.
On the contrary, the globalization of production capacity and new technology development is accelerating away from the US. Ironically, Biden administration subsidies for establishing semi-conductor factories in the US and export restrictions on high-end chips and chip-making equipment are helping to drive the process – and not just in China.
Last February 23, Raimondo delivered an impassioned speech to students at Georgetown University’s School of Foreign Service, at which she said:
I want the United States to be the only country in the world where every company capable of producing leading-edge chips will have a significant R&D and high-volume manufacturing presence…. It is America’s obligation to lead. We must push like no time before.
That is an ambitious goal, to say the least, but the reality is Europe, Taiwan, South Korea and Japan want to keep their leading-edge technologies at home; China must develop its own, in the face of US sanctions; and, in some cases, establishing a manufacturing presence in the US just doesn’t make economic or commercial sense.
Logistically, why should Sony make image sensors in the US for cell phones that are assembled in Asia? Why should Samsung Electronics make memory chips in the US when it has the world’s greatest economies of scale in South Korea?
Samsung is building a new logic integrated circuit (IC) contract manufacturing facility in Taylor, Texas. The project is now about 50% over budget due to construction cost inflation, according to reports.
On July 7, the European Union and the government of Flanders announced a 1.5 billion euro (US$1.65 billion) investment in the Interuniversity Microelectronics Center (imec), headquartered in Belgium.
On June 28, imex and ASML announced joint plans “to intensify their collaboration in the next phase of developing a state-of-the-art high-numerical aperture (High-NA) extreme ultraviolet (EUV) lithography pilot line at imec.”
“This groundbreaking new high-NA technology is crucial for developing high-performance energy-efficient chips, such as next-generation AI systems… Significant investments are needed to secure industry-broad access to high-NA EUV lithography beyond 2025 and retain the related advanced node process R&D capabilities in Europe,” they said.
Imec is a world-leading R&D center for the semiconductor industry. ASML, headquartered in the Netherlands, dominates the global market for semiconductor lithography equipment and has a monopoly on leading-edge EUV lithography. It assembles its lithography systems in Veldhoven in the Netherlands using components sourced in Europe, the US and Taiwan.
I suspect most of the industry players who are building semiconductor production facilities here in the U.S. are doing it mainly to meet government regulatory requirements for defense technology and its future civilian applications.
Some Dem official said the US needs to do a better job preparing American workers for AI than they did switching from Manufacturing to a Service Economy.
That’s the plan. (Sounds like a WEF ploy)
There are chips and then there are chips.
There can be no monopoly oy such a diverse product
If you’re producing things for sale all over the world, the U.S. may be the last place you’d want to produce them.
“The U.S. simply isn’t the dominant market it used to be for industries that use semiconductors and other advanced technology. “
Does that matter? The leading chip-producing countries (China, Taiwan) aren’t dominant markets. Chips are the easiest things of all to ship around the world.
I don’t think you (or anyone else here) knows what a “hot war in Asia” would even look like.
“A big fat tariff will bring back ALL industry to the USA.”
ONLY if the impediments to building stuff in the US are dealt with...that being unions, excessive regulations, and courts sticking their noses in everything.
Otherwise, we’ll just keep importing, and the only difference is that our government will be collecting more taxes. So...I’m not optimistic that ANYONE in DC is serious about bringing back production.
And no matter how “easy” it is to transport chips around the world, one big lesson we should have learned over the last 3+ years is that a long and complex supply chain is highly exposed to disruption.
Great point. Bump for later.
“Great point. Bump for later.”
Thanks, and many don’t realize that the reason that those same problems is what DROVE OUT our manufacturing. And, (without evidence, I admit), I suspect US conditions for manufacturing today are FAR WORSE than they were when our companies left, as I haven’t heard the term “deregulation” since Reagan left office...and all the ‘regulators’ (probably many times more) are still in place.
What about Asia? Terrible countries there too. The Stans, and several places in South Asia.
A high enough tariff will stop all importation.
“A high enough tariff will stop all importation.”
Well, Albania tried that approach during the Cold War, where they tried to be self-sufficient. Doesn’t always work.
Yes, they suck too. I was more pointing towards our influx of illegals.
Haiti counts asAfrica to me…
“Texas Instruments Incorporated is an American technology company headquartered in Dallas, Texas, that designs and manufactures semiconductors and various integrated circuits,”
Gee, government ... why not invest in US companies like this?
Even decades ago, Texas Instruments was having chips made outside the US.
We are not Albania you globalist hack. The USA has a long long history of industrial independence and general prosperity/security for all Americans up until the 1950s when gloBULList punks ruined it.
“We are not Albania you globalist hack.”
Please refrain from the PERSONAL ATTACKS, at least when you’re posting on THIS SITE, as we had three long-time FReepers Zotted on Sunday just for that, and thus I wouldn’t recommend testing JR’s patience with you.
Oh God you were called a globalist hack, how will you survive? Was it “globalist” or “hack” that offended you?
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