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Japan and Germany became major exporters at our expense, and for example, their auto industries thrived globally while the US auto industry faltered and led to the creation of the “Rust Belt” across the midwestern and northeast part of the country. And then China grew and did the same thing to the United States over the past twenty years; they ate our manufacturing lunch. Meanwhile, Taiwan and South Korea became the hubs of the global semiconductor market, rather than the United States.
The top 10% or so of the US income spectrum benefited from this policy at the expense of the bottom deciles. If you worked in healthcare, government, technology, media, or finance in the US, you got all of the primary benefits of living in the country with the global reserve currency, without the drawbacks. But if you worked in manufacturing or other blue collar jobs centered around manufacturing (including various service jobs in manufacturing regions), you got some of the benefits but also got the full force of the drawbacks (lost jobs, suppressed wages, economic stagnation, etc).
Japan and Germany became major exporters at our expense, ... And then China grew and did the same thing to the United States
“Our expectation is that this becomes the largest silicon manufacturing location on the planet,” Intel CEO Pat Gelsinger told TIME; the company has the option to eventually expand to 2,000 acres and up to eight fabs. “We helped to establish the Silicon Valley,” he said. “Now we’re going to do the Silicon Heartland.”
Supply chain bottlenecks have motivated big companies to start increasing capacity in the U.S.; Intel itself said last year it would spend $20 billion to build two major factories in Arizona, and in 2020, the global leader in chip manufacturing Taiwan Semiconductor Manufacturing Co. (TSMC), said it would spend $12 billion to build a semiconductor factory, also in Arizona. Samsung is investing $17 billion in a chip plant in Texas.
To create a more reliable supply of chips, the federal government is weighing providing incentives for chip makers in the U.S. The CHIPS for America Act, passed last year, authorized federal investments in chip manufacturing, but it did not provide funding. The Senate passed $52 billion in funding in June, but the House has not passed the legislation.
Intel will drop $20Bn to make new fabs in USA - Ohio or NY.
I always figured Africa would be the last area to be exploited for cheap labor.
Anyway, some time has passed but it looks like this is actually in motion. This article interviews the qualcomm ceo and this question in particular addressed it, and I was happy to hear the answer:
https://www.theverge.com/22876511/qualcomm-ceo-cristiano-amon-interview-decoder-podcast?source=patrick.net
And just in general, there does seem to be bipartisan agreement now that the usa (or at least the west) needs to diversify away from chyna, at least for certain industries. I think this new stance is a very unsung victory for the country that from what I can tell, Trump put into motion.