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Akiasakias t1_jad6pn1 wrote

Reply to comment by LowGradePlayer in The U.S. needs more than the CHIPS Act to stay ahead of China: MIT report by Vailhem

In this case microprocessors?

It's ambiguous because china only makes the very low end chips. They are not a threat to the high end market.

The article does not differentiate. So yeah china makes a lot of chips, but not even the quality to go in a car, more like a toaster. Lots of em, but just the real basic designs.

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[deleted] t1_jadkk02 wrote

[deleted]

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Akiasakias t1_jadlfxl wrote

Hence the onshoring.

It would be trouble, but temporary. Not crippling. Notably, even if China captured the factories intact, which is impossible. They would not have the capacity to utilize them without American designs.

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Mr_ToDo t1_jaeouvh wrote

I wonder how America would ever compete on the low end. There are 10 cent Risc-V microcontrollers available. It's kind of wild

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Akiasakias t1_jaerdef wrote

It is a problem, but consider this. Mexican labor is now cheaper than Chinese labor and they are going through the largest buildout of industrial capacity in their history.

Not to mention the rest of south east Asia is still dirt cheap for mass production.

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