Why do you say that?
Because the components are going to become more expensive?
Because the US labor is more expensive?
Do you know how it breaks down?
Why do you say that?
Because the components are going to become more expensive?
Because the US labor is more expensive?
Do you know how it breaks down?
Because those exvluded from tarifs will take the tatiffed competition sticker price -1$ to milkvtheir good fortune ?
money on the table for patriotism ?
For one example, you'll pay tariffs on everything you import to do the manufacturing, from lithography machines to FOUPs. Equipment costs are the majority of wafer cost in a modern fab, so this is pretty significant.
Generally the BOM cost of most hardware is much smaller than the labor cost of assembly. That's why company shipped their semiconductors to low labor cost countries and re-imported finished goods.
That said, if the US does enter a depression then the cost of labor in the US will plummet as people compete for jobs which may? change that ratio in favor of manufacturing in the US. That is rumored to be the "big secret" behind these stupid moves but frankly the folks who believe that are not seeing what I'm seeing I guess.
If the cost of labor plummets I wonder if it will accelerate the timeline for AI, automation, and robotics.
I gave this a shot at home a month ago by cutting my kids off from toys online and getting them a 3D printer. They have already printed more toys than the cost of the printer. The only problem is that the printer was manufactured in China.
I don't see that happening. I reason to it this way;
In 2024, $15 BILLION dollars was invested in AI startups, and a record $250 BILLION dollars by established companies (nVidia/Microsoft/Google/Facebook/Apple)
I don't believe that AI making any meaningful progress on the "timeline" will occur just because you throw even more money at it.
Not really. Take an iPhone. The component costs are around $500 while the assembly costs are probably about $30-$50.
Because the components are going to become more expensive?
Of course.
Do you think you're the only one who wants to source US semiconductor parts?
It's supply and demand. Along with some good ole fashioned profiteering.
But I thought semiconductor manufacturing was high margin?