Also because we dont have the construction experience of building FAB's, and we have different building regulation and standards.
25% tariffs on steel also wont make it any cheaper.
this post was submitted on 19 Feb 2025
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Yes, and with all that combined twice as expensive and twice longer is kinda fine. Provided it will function.
EDIT: Except if ever TSMC Taiwan foundries' monopoly is no more, this means loss of a very specific kind of shield of Taiwan's de facto independence, which may cause a lot of interesting developments.
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“Free trade” means letting everyone do what they’re best at and then exchange the goods they produce. This is so that everybody is focused on what works best in their country, everything is done as well and as cheaply as possible. However this makes no guarantee about any one country’s ability, at the end of the day, to stand alone without dependencies on others for vital goods. In fact if anything it works against that.
I don’t know why Trump talks about globalism as some Democrat thing. It’s his own party that has been driving for free trade since forever.
Free trade is the best system for 90 % of an economy. I will take a dump on Trump any day, maybe twice , but having a small capacity to build your own silicon chip is mandatory in case of a military conflict. Covid wasn’t a planned military conflict and first world economies couldn’t produce mask, gown… and luckily the virus wasn’t so deadly and only a small % of the population died.
I am Canadian… by any free trade perspective it looks like we should buy our milk from countries with less harsh winter… but then we would be on our knee if an idiot decide to bully us with a duty tax.
There should be free trade for 90 % of a country gdp and elected officials can change their list of excluded 10 % every few years.
Are you saying that 10% of an economy is vital goods and the other 90% is not? Not that I have any numbers on this but 10% seems low to me.
10 % isn’t based on anything but let’s imagine: 2-4 % military 1 % communication infrastructure, media and unbiased information 2-4 % healthcare 2-4 % food. You quickly get to 10%. Too big and you loose the benefit of free trade.
Could you try doing the same with the 90%? if life’s essentials are so easily paid for I am wondering what you think the rest is going to?
I don't know about the numbers you present, but absolutely agree that some industries are just worth supporting, from a government perspective. Cannot be reliant on a geopolitical enemy for goods that allow your country to continue to function.
I think Trump losing us allies is a travesty, but there's no guarantee during a global conflict you can get items from said allies.
“Free trade” means letting everyone do what they’re best at and then exchange the goods they produce
If that were the case there would not be Plaza accords, dismemberment of Angstrom and the absolute annihilation of industry in the post-soviet states. "Free trade" is and always has been a fanciful banner for wealth extraction
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Global foundries has a fab nearby, and all they produce are those chips for the old obsolete cars put out by Ford
Not everything has to be latest gen CPUs, there will always be a market for 555 timers and ESP32s
Plus, these have to be automotive grade, which requires a higher tier of durability. Not a lot of profit margin to be made on those sorts of devices.
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If you thought GPUs were pricey now. At least the rest of the world can still buy from Taiwan.
"A country with experience in fab construction can build one faster and cheaper than a country with no experience"
Yeah, not really surprising
Yep that 24/7 round-the-clock construction and experience in Taiwan surely would contribute significantly to the difference.
For now.
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